In its financial results according to US GAAP (Generally Accepted Accounting Principles) for the first quarter of 2014, Russian steelmaker NLMK Group's net profit increased by 359 percent compared to the first quarter of the previous year to $174 million. This increase was related to higher profit from operations, and the impact of one-off factors on Q4 2013 results. NLMK's sales revenues amounted to $2.638 billion, down eight percent year on year. The decrease in revenue was due to the overall reduction in product prices that was partially offset by the three percent year-on-year sales growth.
In the given quarter, NLMK's steel sales volume increased by seven percent year on year to 3.173 million mt, supported by improved market conditions at the end of the quarter, and by the sale of stocks accumulated in the previous periods. In the second quarter of the current year, NLMK expects a seasonal improvement in demand for steel products at its key sales markets that will positively contribute to the segment's operating and financial results.
In the first quarter, EBITDA was up by 47 percent year on year to $468 million, while the EBITDA margin increased to 17.7 percent from 11.1 percent in the corresponding quarter of 2013, driven by increased sales and decreased production costs.