Chelyabinsk pipe mill sees H1 earnings shrink 90.8%
MOSCOW. Aug 17 (Interfax) - Chelyabinsk Tube Rolling Plant (ChTPZ) , the flagship enterprise of the ChTPZ pipe and metals group, closed the first half of 2009 with net profit of 85.884 million rubles to Russian Accounting Standards (RAS), down 90.8% year-on-year, the company said in an earnings report.
Sales revenue fell 29.2% to 12.024 billion rubles, but operating profit grew 11.7% to 2.214 billion rubles.
Reduced demand and sales prices affected the sales, and gross profit was impacted by changing product mix and cost-cutting.
ChTPZ financial highlights ('000 rubles):
| H1 2009 | H1 2008 | |
| Sales revenue | 12 024 450 | 16 972 948 |
| Cost of sold goods | 8 210 655 | 12 933 514 |
| Gross profit | 3 813 795 | 4 039 434 |
| Operating profit | 2 213 966 | 1 982 200 |
| Pretax profit | 171 232 | 1 306 967 |
| Net profit | 85 884 | 935 653 |
Revenue and profit was also affected by changing fluctuating steel prices, a weaker ruble and, to a lesser extent, repair and maintenance costs.
Receivables grew to 12.86 billion rubles from 10.82 billion rubles during the half, while payables edged up to 5.802 billion rubles from 5.72 billion rubles.
The ChTPZ Group also includes Pervouralsk New Pipe Plant (PNTZ) , which said net losses to RAS were 500.947 million rubles in H1 2009, compared with profit of 1.066 billion rubles in the same period of last year. Revenue at PNTZ fell 33.2% year-on-year to 9.286 billion rubles.
PNTZ financial highlights, '000 rubles:
| H1 2009 | H1 2008 | |
| Sales revenue | 9 285 515 | 13 889 843 |
| Cost of sold goods | 7 156 509 | 10 477 341 |
| Gross profit | 2 129 006 | 3 412 502 |
| Operating profit | 848 778 | 1 905 375 |
| Pretax profit (loss) | (550 600) | 1 451 595 |
| Net profit (loss) | (500 947) | 1 065 568 |
PNTZ's receivables fell to 5.759 billion rubles from 7.868 billion rubles during the half, but payables grew to 8.46 billion rubles from 6.68 billion rubles.