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"Severstal" reduces losses

25 November 2014

During the period from July to September 2014, «Severstal» has been able to reduce by 16 times the net loss to a level of 45 million. USD. relative to the second quarter, which had an impact on the lack of significant write-downs of assets. The very same negative result in the amount of USD 453 million largely associated with foreign exchange factor — if you do not take into account the exchange rate differences, net income would amount to 323 million USD… In April-June on the depreciation of assets, the company spent more than 1 billion. USD, as a result, together with the profit from the realized net profit of US assets could amount to 206 million. USD. For comparison — in 2013 the net profit of «Severstal» in the third quarter amounted to 157 million USD, while the amount of the loss was 807 million USD…

EBITDA «Severstal» — an indicator that determines the profit, including taxes, compulsory interest, depreciation and amortization — for the period July-September 2014 increased compared to the previous quarter by 26%, revenues increased by 2.4% and amounted to 2.24 billion USD. what a positive influence was rendered somewhat improved pricing environment and diversification. However, the company has lowered the level of the estimated capital expenditure for 2014 to the level of 868 million. USD due to changes in exchange rate RUB and sales of North American assets.

At the same time the management of «Severstal» does not forget about the development of production capacities — in Cherepovets, the company plans to build a complex of metal coatings, the cost of which will exceed 6 billion RUB… The complex facilities will include a continuous hot-dip galvanizing plant with an annual capacity of 400 000 tons, metal coating and assembly of polymer materials with an annual capacity of 200 000 tons. In addition, the company invested 3.4 billion. RUB in the project, thanks to which will be reduced emissions into the atmosphere of dust waste. The last stage of the project was the completion of the overhaul of the converter 1, which resulted in the replacement of the support ring and the housing. Similar work was carried out on the converter 2 and 3. According to preliminary calculations, the new installation ensures reduction in the volume of dust emitted into the atmosphere waste 8 times.

In October, the joint brainchild of «Severstal» and the Japanese «of Mitsui» Company «Severstal-SMC-Vsevolozhsk», opened the first not only in Russia and CIS countries, the line for the production of welded blanks intended for the automotive industry. Cherepovets mill will be supplied by more than 90% of metal-roll.

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