MMK’s net profit rises 19% in January-June 2008

Magnitogorsk Iron & Steel Works (MMK) published a consolidated financial report on the enterprise’s activity in the first half of 2008. The report was drawn up in accordance with the US GAAP standards.

The enterprise’s revenues rose by 41% in January-June 2008 compared with a year earlier and reached $5.653bn due to growing prices and greater production output. The company’s EBITDA grew by 25% and amounted to $1.511bn. The EBITDA margin came to 27% in the first half of 2008 and to 30% in the second quarter of the year. MMK’s net profit went up by 19% and came to $1.031bn.

‘We have once again achieved quite good results despite the branch’s generally increasing expenses. Increased production output and our ongoing attempts to raise productivity and decrease spending were supported by rising metal goods prices and resulted in stable revenue and net profit growth. As for the future, I believe the good demand our high-quality products enjoy, our multi-stage investment strategy, and greater reliance on our own raw resources will all lead to a noticeable increase in our stock price,’ says MMK’s BOD Chairman Viktor Rashnikov.

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