The Russian steelmaker Severstal has issued its financial data for the first nine months of 2008.
According to the release, during the period in question Severstal's revenues increased by 60.6 percent year on year to $18.152 million, due to the strong price increases, volume growth and the consolidation of its US assets in Q2 and Q3. Severstal's sales increased by 61 percent to $12.382 million, its profit from operations rose by 80.7 percent to $4.179 million, while its EBIDTA went up by 69.4 percent to $4.981 million, all compared with the same period last year.
Commenting on the second half of the year, Severstal stated, "The financial turmoil over recent months has affected economic growth prospects across global markets, resulting in weakening demand for steel. In light of these more difficult market conditions, the board of Severstal now expects EBITDA for the full year to be in the range of $5.1-$5.3 billion."
As SteelOrbis previously reported, Severstal has cut back its $8 billion capital investment program for 2009-2011, and is reducing output by 25 percent at its Russia-based subsidiary and by around 30 percent at its North American and Italian subsidiaries, in order to be able to continue to operate profitably in a tougher market environment.