In its financial results according to US GAAP (Generally Accepted Accounting Principles) for 2012, Russian steelmaker NLMK Group's net profit decreased by 56 percent compared to the previous year to $596 million due to its weaker operating profit and the recognition of one-off provisions in Q4 2012. In the fourth quarter of 2012, the company registered a net loss of $22 million compared to a net profit of $167 million in the previous quarter.
In 2012, NLMK's sales revenues increased by four percent year on year reaching $12.157 billion. This was achieved despite the deteriorating conditions in the global markets and a weaker pricing environment through the growth in product sales, the redirection of sales into the more attractive domestic market, and increased value-added product sales. In the fourth quarter of 2012, the company's sales revenues declined by seven percent quarter on quarter to $2.803 billion due to the seasonally weaker demand translating into lower sales, price declines and growth in sales of ordinary grade products.
In 2012, EBITDA was down by 16 percent to $1.9 billion on the back of growing prices for key raw materials. The EBITDA margin was down to 16 percent in 2012 from 19 percent in 2011, but it still remained one of the highest in the sector.