VIZ-Stal, the Ekaterinburg-based transformer steel producing subsidiary of the Russian steelmaker Novolipetsk Steel (NLMK), in Q3 this year registered a decrease of 30 percent quarter on quarter and 45 percent year on year in its net profit under Russian Accounting Standards (RAS), mainly due to lower profit from its core business activities.
In addition, VIZ-Stal's Q3 revenue decreased by 15.5 percent quarter on quarter, mainly as a result of lower sales volumes. The year-on-year revenue decrease of 26 percent was driven by a decline in electrical steel prices.
Meanwhile, the lower gross profit quarter on quarter was also impacted by the rise in prices for hot rolled steel which is used as substrate for electrical steel production. This product is supplied by NLMK's Lipetsk production site.
Q3 2010 (Ruble) |
Change q-o-q |
Change y-o-y |
|
Revenue |
2,400,949,000 |
-15.48% |
-26.12% |
Gross profit |
771,419,000 |
-21.32% |
-54.03% |
Net profit |
454,330,000 |
-29.75% |
-44.78% |