Russian steelmaker Severstal has announced its financial results for the third quarter and first nine months of the current year. Accordingly, in the third quarter Severstal’s net profit decreased by 28.7 percent compared to the previous quarter to $429 million, while in the first nine months of this year the company's net profit reached $1.55 billion, compared to a net loss of $225 million recorded in the same period of last year.
In Q3 this year, Severstal's sales revenues increased by 8.9 percent quarter on quarter reaching $4.772 billion, while Severstal's revenues in the first nine months of this year were recorded at $12.882 billion with an increase of 30.8 percent compared to the same period of last year. At the same time, EBITDA increased 1.9 percent quarter on quarter to $1.130 billion in Q3 and the EBITDA margin was down 23.7 percent from the 25.3 percent recorded in Q2.
Commenting on the fiscal results of the company, Alexey Mordashov, CEO of Severstal, stated, "Q3 2011 was another strong quarter for Severstal, allowing us to make further improvements on revenue and EBITDA. We did our best to take advantage of the strong Q3 demand from the construction industry in Russia. That, together with continued high raw materials and gold prices, enabled us to maintain a solid EBITDA margin of 23.7 percent. Although the global economic landscape remains uncertain and we expect lower orders from customers at the end of the year, in Q1 2012 the market is expecting some positive signs of recovery in the industry."