16 Jul 2009 11:53

MMK revenue down 54% to 56 bln rubles in H1

MAGNITOGORSK. July 16 (Interfax) - Magnitogorsk Iron & Steel Works (MMK) posted a sales profit of about 9 billion rubles on revenue of 56 billion rubles in the first half of 2009 under Russian accounting standards (RAS), Oleg Fedonin, vice president for finance and economics, told journalists on Thursday, citing preliminary data.

The steel maker expects second quarter results to at least match first quarter results.

MMK had revenue totaling 121.730 billion rubles in the first half last year and a sales profit of 32 billion rubles. Thus, revenue in the latest period was 54% lower and the sales profit was about 70% lower.

MMK had $965 million in debt as of July 1. Receivables amounted to 16 billion rubles, which the company plans to reduce to 5 billion-6 billion rubles by the end of the year.

The vice president of sales, Vladimir Shmakov, does not rule out the possibility of a dip in the market later this year, but said "there won