Severstal registers $577 million net loss in 2010

The Russian steel and mining company Severstal has announced that in 2010 it registered a net loss of $577 million due to discontinued operations - down from a net loss of $1.04 billion in 2009. Severstal added that in 2011, considering the improving market conditions, it expects to see growth in its production and sales.
 
"Accelerating economic growth in our key markets in 2011 should produce another strong year for Severstal as demand for steel improves and raw material prices rise," Severstal's CEO Alexey Mordashov said.
 
Severstal's 2010 EBITDA increased by 105.3 percent year on year to $3.26 billion, while its revenue went up by 41.5 percent to $13.57 billion compared to 2009, with a 42.7 percent increase in revenue of its Russian Steel segment, a 86.2 percent increase in revenue of Severstal Resource, and a 26 percent increase in revenue of its North America segment.
 
"Notable drivers of our revenue growth in 2010 were sales of steel products to the Russian market, sales of mining products to our steelmaking assets and to third parties and the rapid expansion of our gold business," reads the company's statement.
 
Severstal's cash capital expenditures in 2010 totaled $1.25 billion and were in line with its target for the year, as it continued to invest across its operations in order to expand mining and steel production volumes, increase output of high value-added steel products, improve its operational efficiency and reduce costs.