8 Sep 2009 10:12

Severstal hopes to see North American assets post profit in Q4

MOSCOW. Sept 8 (Interfax) - OJSC Severstal hopes to see its North American assets post profit in the fourth quarter of 2009.

"This depends much on how stable the recovery on the market will be," the general director of Severstal International and Severstal North America, Sergei Kuznetsov, said during a conference call when asked about when he expected to see the company's North American assets post a positive EBITDA. "We could expect positive EBITDA in the fourth quarter if no negative changes occur on the market."

The order portfolio for Severstal's North American assets is closed he said, adding that enterprises were starting to place November orders.

It was earlier reported that Severstal's North American operations closed the first half of 2009 with EBITDA at minus $479 million. The company is currently putting the finishing touches on its strategy for North America. "We intend to maintain our presence in North America, which is one of the most important steel markets in the world for the long-term, while also maintaining the most effective enterprises by making them more flexible and efficient," the statement said.

Severstal has assets in Russia, North America, Europe, Africa, Kazakhstan and Ukraine. Severstal's chief beneficiary is general director Alexei Mordashov, who owns approximately 82.4% of shares. The rest are in free float.


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