NLMK’s EBITDA profitability drops 43%

18 November 2011 (18:19)

UrBC, Moscow, November 17, 2011. Russia’s steel-making enterprises have now felt the metallurgical industry’s global downfall. For one, the financial performance indicators of Vladimir Lisin’s Novolipetsk Iron & Steel Works (NLMK) went drastically down in the third quarter of 2011, Kommersant reports.

Among other things, the company’s key efficiency indicator – its EBITDA profitability – dropped down to the levels of the recession-hit year 2009. Up till now, NLMK’s figures were some of the best in the industry, but the company had unlucky timing with the consolidation of its European assets, the newspaper points out.

NLMK’s net profit (according to US GAAP) decreased by 2.6 times and came to $225m. Analysts had expected the figure to reach $336m. The enterprise’s revenues, on the other hand, rose by 12% and amounted to $3.33bn, which was over $100m better than had been expected. However, EBITDA plunged by 43% and came to $478m.

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