MMK builds up on performance

UrBC, Chelyabinsk, August 13, 2010. OAO Magnitogorsk Iron & Steel Works (MMK) came up with a financial performance report (compiled in accordance with the Russian Accounting Standards) for the second quarter of 2010.
The company’s revenues rose by 26% in the second quarter of the year compared with the first quarter of 2010 and amounted to 53.117 billion RUR. MMK says the increase in revenues has to do with greater sales volumes and the rising average prices. The average price of 1,000 kg of MMK’s produce went up by 15.1% in the second quarter of 2010 against the first quarter and reached $647.
The enterprise’s investment profit came to 9.109 billion RUR, while the net profit (without considering the re-evaluation of securities investments) went up by 24% and came to 4.678 billion RUR.
In April-June 2010, MMK produced 2.984 million tons of steel, which was 252,000 tons, or 9% better than in January-June 2010.
The goods output rose by 170,000 tons, or 7% in the second quarter of the year compared with the first quarter, and reached 2.623 million tons.
‘The increase in output results from the increased production of goods with high added value, largely the greater output of Mill 5000-manufactured plate sheets (29% more, or 52,000 more tons were produced in the second quarter of the year compared with the first quarter),’ MMK reports.
In April-June 2010, the output of goods with high added value increased by 174,000 tons, or 24%; this came to 35%, rather than the previous 30%, of all the goods produced by MMK.
The company shipped 1.712 million tons of goods on the home market; this ensured 71% of metal goods sales revenues.
As far as home market sales are concerned, MMK sold 65% of its produce to domestic consumers in the second quarter of 2010 compared with 64% in the first quarter of 2010.


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