15 Oct 2010 10:22

Evraz cuts Q3 steel output 8.7%, ups EBITDA forecast to $550 mln-$600 mln

MOSCOW. Oct 15 (Interfax) - Evraz Group reduced steel production 8.7% year-on-year in Q3 2010 to 3.868 million tonnes, the company said.

Evraz said a decrease in pig iron and steel production volumes was mainly due to scheduled modernisation and repairs at Russian steel mills, and would be reversed in Q4 2010.

"As most of the scheduled modernisation projects and safety equipment installation has been completed, we expect production volumes to recover in Q4, 2010," it said.

Coking coal volumes remain depressed due to stoppages at the mines caused by safety inspections and additional security equipment installation following the accident at Raspadskaya . Volumes are expected to return to normalised levels in Q4 2010.

Evraz also said it had raised its forecast Q3 2010 earnings before taxes, depreciation and amortization (EBITDA) to $550 million-$600 million from $480 million-$550 million "due to shorter than expected downtime and improvement in Russian domestic pricing of construction products in September."