VIZ-Stal, the Ekaterinburg-based transformer steel producing subsidiary of the Russian steelmaker Novolipetsk Steel (NLMK), in Q1 this year registered a 50 percent growth year on year in its revenues under Russian Accounting Standards (RAS), while its sales volumes for the quarter increased 2.5-fold year on year.
Meanwhile, the less significant increases in VIZ-Stal's gross profit and operating profit were primarily attributable to growing prices for hot rolled steel, the key raw material for the manufacture of transformer steel, reads NLMK's statement.
VIZ-Stal saw weaker a Q1 financial performance on quarter on quarter basis, mainly because of a 31 percent drop quarter on quarter in its sales. This decline is mostly of technical nature and is associated with FOB-based rolled product deliveries, resulting in a delayed recognition of March product deliveries. In addition, average transformer steel prices were lower quarter on quarter, which also contributed to a lower financial performance of the company.
Q1 2010 (Ruble thousand) |
Q4 2009 (Ruble thousand) |
Q1 2009 (Ruble thousand) |
Change Q1 2010/Q4 2009 |
Change Q1 2010/Q1 2009 |
|
Revenue |
1 901 604 |
3 074 456 |
1 265 315 |
-38.15% |
50.29% |
Gross profit |
775 195 |
1 619 258 |
736 186 |
-52.13% |
5.30% |
Operating profit |
616 641 |
1 420 251 |
601 388 |
-56.58% |
2.54% |
Net profit |
440 104 |
853 579 |
572 675 |
-48.44% |
-23.15% |