Mechel’s net loss exceeds $2bn in January-September 2013

December 24, 2013. In the nine months of 2013, Mechel’s net loss amounted to #2.2bn RUR, which was 4.1 times more than a year earlier ($550.094m), the company’s report states.

This figure was actually quite less than what the analysts had predicted – they thought the net loss would come to $597.167m.

‘The company has lived through this year under the unchanging unfavorable sales market situation, which affected its basic financial performance indicators considerably. Successful negotiations were held with the creditor banks for a break until the end of 2014. A lot of non-core assets have also been sold by the Group. At the same time, we had one-off occasions with non-cash assets written off, which resulted in this $2.2bn RUR worth of net loss in the nine months of the year,’ says the company Director-General Evgeniy Mikhel.

Mechel’s profits resulting from sales on the external market decreased by 19% in January-September 2013 and amounted to $6.692bn against $8.222bn a year earlier, which was lower than predicted ($6.938bn).


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