OOO VIZ-Stal’s net profit and revenues drop

The revenues of OOO VIZ-Stal (the asset of Novolipetsk Iron & Steel Works, NTMK) went down by 15% in the third quarter of 2010 compared with the previous quarter. The plant explains their financial performance in the third quarter had to with shrinking product sales.

The plant’s revenues decreased by 26% over one year, which was a result of lower prices for rolled products for the electric industry.

The company’s gross profit plunged by 21% in the third quarter of 2010 and by 63% over the year.

‘Another reason our gross profit decreased against the earlier periods was that the hot-rolled products prices actually went up, and these products are used as raw materials for electric steel making. This kind of produce gets delivered through NLMK,’ NLMK reports.

Finally, the plant’s net profit decreased by 29.7% in the third quarter of the year and by 44.7% over twelve months because the company’s core business activity yielded less profit.


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