MMK net profit down 57% to $94 mln in Q1
MOSCOW. June 11 (Interfax) - Magnitogorsk Iron & Steel Works (MMK) saw consolidated net profit fall to $94 million in the first quarter under IFRS, a decline of 57% from the fourth quarter of 2009.
The result is slightly below the consensus forecast of $100 million. MMK posted a net loss of $110 million in the first quarter last year.
Revenue in the latest quarter equaled $1.652 billion and EBITDA was $364 million. Those indicators were also lower than the consensus forecast ($1.715 billion and $381 million, respectively).
Key financial indicators for MMK in Q1 ($ mln):
|Q1 2010||Q1 2009|
As of March 31, 2010, MMK had $1.5 billion in undrawn credit facilities. Overall debt was $2.4 billion, and short-term debt accounted for 36% of this, compared with 39% at the end of 2009. The short-term debt amounted in Q1 2010 to $866 million, including $252 million of revolving credit facilities of traders within MMK Group. Therefore, net short term debt amounted to $614 million.
Cash outflow to investments into property and equipment grew in Q1 2010 to $620 million, from $388 million in Q4 2009. The CAPEX amount grew in particular due to investments of the parent company - commissioning of Continuous Slab Caster #6 and Secondary steel treatment unit, as well as investments of subsidiaries -development of the MMK-Atakas steel-making complex in Turkey and implementation of Belon investment program.
MMK's average realized price grew by 34% in Q1 2010 y-o-y due to demand recovery and increasing share of HVA products.