NLMK’s Lipetsk site’s Q3 revenue high despite market downturn

Friday, 12 November 2010 16:30:19 (GMT+3)   |  

The Russian steelmaker Novolipetsk Steel (NLMK) has issued the Russian Accounting Standards (RAS) financial results for its main production site in Lipetsk for the third quarter of 2010.

Accordingly, in Q3 2010, despite the market downturn, NLMK's main production site posted a 2.2 percent quarter-on-quarter and 30.5 percent year‐on‐year revenue growth, mainly due to higher sale prices and the increased share of high value-added (HVA) products in the sales mix.

Meanwhile, the company's Q3 gross profit increased by 17.6 percent year on year due to the significant growth of steel product prices, but declined by 10.6 percent quarter on quarter due to higher production costs.

The 18.4 quarter-on-quarter increase in NLMK's main production site's Q3 net income is mainly attributable to foreign currency exchange gains, while the 150 percent year-on-year growth is due to the absence of one‐off losses, as occurred last year, NLMK said. 

 

Q3 2010 (Ruble)

Change q-o-q

Change y-o-y

Revenue

47,785,426,000

+2.16%

+30.5%

Gross profit

12,932,983,000

-10.57%

+17.57%

Net profit

13,841,724,000

+18.43%

+149.35%


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