MMK posts 2Q 2010 net profit of $53 million

Russian steelmaker, MMK, has posted a 2Q 2010 net profit of $53 million under IFRS.

The net result compares with a 2Q 2009 net profit of $59 million, despite 2Q EBITDA jumping from $207 million in 2009 to $437 million this year, as 2Q sales jumped from $1.038 billion in 2009 to $2.068 billion this year.

MMK noted that the 2Q net result was also down from the $94 million 1Q 2010 net profit despite 2Q EBITDA and sales rising 17% and 25%, respectively, quarter and quarter. The company said the reduced bottom line reflected one-offs including currency exchange rate differences and allowance for doubtful debts.

More positively it also noted that steel prices were rising with MMK increasing sales of higher value added products, with finished steel production rising 7%.