The Russian steelmaker Novolipetsk Steel (NLMK) has announced that in Q3 2010 Nizhne-Serginsky Metallurgical and Metalware Plant (NSMMZ), the main asset of its Long Products Division, continued to increase its sales volumes both through long product deliveries to the domestic market and also by billet exports.
Accordingly, in Q3 2010, the total growth of NSMMZ's steel product sales amounted to 53 percent quarter on quarter, which helped to improve its sales revenues also by about 53 percent quarter on quarter.
During the period in question, steel product prices outpaced scrap prices, thus, driving the company's gross profits up to 59.7 percent quarter on quarter. The year-on-year gross profit multiplied three‐fold.
Meanwhile, NSMMZ's net losses are still determined by high debt leverage. Nonetheless, a strong operating performance allowed NSMMZ to significantly improve both its quarter-on-quarter and year-on-year financial results, NLMK said in its statement.
Q3 2010 (Ruble) |
Change q-o-q |
Change y-o-y |
|
Revenue |
9,277,001,000 |
+52.64% |
+57.81% |
Gross profit |
2,192,608,000 |
+59.69% |
+202.9% |
Net profit |
‐190,065,000 |
-71.77% |
-80.48% |