Mechel announced financial results for the 1H 2012.
Mechel OAO's CEO Mr Yevgeny Mikhel commented on the 1H 2012 financial results
"The first half of 2012 witnessed a series of milestone events for the Group -- we completed a large-scale debt restructuring process and set off to execute on the company's new strategy of divesting non-strategic assets, improving operating cash flow and reducing debt.
"The key markets for the products exported by Mechel's mining and steel divisions gradually deteriorated in the first half of 2012. Even though the Group's divisions operated quite stably in terms of production and distribution, the Group's financial results were strongly affected, inter alia, by non-recurrent accounting write-offs, resulting from declining market environment, as well as foreign exchange loss. However, the company took measures to improve its operational and financial performance by way of cutting production costs and accessing new sales markets, thus achieving positive cash flow in the reporting period."
Consolidated Results For The 1H 2012
| | H1, 12 | H1’11 | YoY |
| Revenue from external customers | 6,035,955 | 6,406,944 | -5.8% |
| Intersegment sales | 877,427 | 1,092,366 | -19.7% |
| Operating (loss) / income | (156,580) | 924,685 | -116.9% |
| Operating margin | -2.59% | 14.43% | - |
| Net (loss) | (605,004) | 501,022 | -220.8% |
| Adjusted net income | 40,982 | 501,022 | -91.8% |
| Adjusted EBITDA | 848,848 | 1,179,174 | -28.0% |
| Adjusted EBITDA, margin | 14.06% | 18.40% | - |
In USD ‘000
The net revenue in 2Q 2012 increased by 4.6% and amounted to USD 3.1 billion compared to USD 3.0 billion in 1Q 2012. The operating loss amounted to USD 471 million or -15.25% of the net revenue, compared to the operating income of USD 314 million or 10.64% of the net revenue in 1Q 2012.
Source - Mechel
(www.steelguru.com)
