NLMK posts 1Q 2011 net profit of $392 million

Russian steelmaker, Novolipetsk Steel or NLMK, has posted a 1Q 2011 net profit of $392 million under US GAAP.

The net result attributable to NLMK shareholders soared 198% year on year from $132 million posted for 1Q 2010, with 1Q 2011 EBITDA rising 51% to $585 million, as revenues rise 39% to $2.359 billion from $1.697 billion a year earlier. The company said that despite mild slowdown in sales it showed solid performance on the back of improved market conditions and tight cost controlGalina Aglyamova, Chief Financial Officer of NLMK, said that company management’s frequent response to changing market conditions sustains positive performance.  “Despite a seasonal slowdown in sales (-8% quarter on quarter), streamlined sales breakdown and higher prices pushed revenues up 4% to $2.4 billion. Cost control allowed us to increase our EBITDA by 19% and the EBITDA margin by 3 p.p. to 25%. In Q2 we expect further improvements in our operating and financial performance to be brought about by a gradual increase in domestic demand and higher consumer activity in our key export markets.”