MMK’s net profit goes up 6%
7 April 2011 (18:20)
UrBC, Magnitogorsk, Chelyabinsk Region, April 7, 2011. Magnitogorsk Iron & Steel Works (MMK) came up with a financial performance report for the year 2010. The report was prepared in accordance with the International Accounting Standards.
The company’s revenues reached $7,719m last year, which was 52% better than a year earlier. The net profit rose by 6% and amounted to $322m.
EBITDA reached $1,606m, which exceeded the figures for the year 2009 by 23%. The EBITDA margin came to 21%.
MMK Group’s share of high value-added goods increased from 27% in 2009 to 34% in 2010 against the enterprise’s total goods output.
MMK’s domestic sales amounted to 75% of the company’s proceeds.
‘The performance figures for the year 2010 prove that the company’s policy of raising home sales is efficient due to the launch of new product types and import replacement. We are witnessing a growing demand for our produce on the part of our key customers as well as in our traditional Russian regional sales markets. This means we can expect some output growth in the next few years, a kind of growth that will leave the market’s average dynamics behind. We hit our peak capital investment figures within our investment program last year, so the preplanned 45% production output growth by the year 2012 is virtually fully financed now,’ says MMK Vice President for Finances & Economics Oleg Fedonin.
‘All in all, we expect the year 2011 to be the one of growing metal products consumption in Russia, with about a 10% increase mainly due to the increasing demand on the part of pipe manufacturers and machine-builders. Once the warm weather sets in the country, the builders will probably start buying more goods from us as well,’ the company’s report says.
MMK is planning to raise its metal goods output by 20% within the Group, including a 15% increase within Russia-based member companies. This increase will have to do with the launch of MMK’s facilities in Turkey and a heavier use of the company’s Russian sites. This year, MMK intends to build on its share of high value-added goods through relying more heavily on its Mill 5000 and the launch of high quality cold rolled products via Mill 2000 (the facility is to be launched in July 2011).
The company’s revenues reached $7,719m last year, which was 52% better than a year earlier. The net profit rose by 6% and amounted to $322m.
EBITDA reached $1,606m, which exceeded the figures for the year 2009 by 23%. The EBITDA margin came to 21%.
MMK Group’s share of high value-added goods increased from 27% in 2009 to 34% in 2010 against the enterprise’s total goods output.
MMK’s domestic sales amounted to 75% of the company’s proceeds.
‘The performance figures for the year 2010 prove that the company’s policy of raising home sales is efficient due to the launch of new product types and import replacement. We are witnessing a growing demand for our produce on the part of our key customers as well as in our traditional Russian regional sales markets. This means we can expect some output growth in the next few years, a kind of growth that will leave the market’s average dynamics behind. We hit our peak capital investment figures within our investment program last year, so the preplanned 45% production output growth by the year 2012 is virtually fully financed now,’ says MMK Vice President for Finances & Economics Oleg Fedonin.
‘All in all, we expect the year 2011 to be the one of growing metal products consumption in Russia, with about a 10% increase mainly due to the increasing demand on the part of pipe manufacturers and machine-builders. Once the warm weather sets in the country, the builders will probably start buying more goods from us as well,’ the company’s report says.
MMK is planning to raise its metal goods output by 20% within the Group, including a 15% increase within Russia-based member companies. This increase will have to do with the launch of MMK’s facilities in Turkey and a heavier use of the company’s Russian sites. This year, MMK intends to build on its share of high value-added goods through relying more heavily on its Mill 5000 and the launch of high quality cold rolled products via Mill 2000 (the facility is to be launched in July 2011).
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