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9 Mar, 2010 07:52

Severstal posts FY 2009 net loss of $1.037 billion

Severstal posts FY 2009 net loss of $1.037 billion

Russian steel and mining company, Severstal, has posted a FY 2009 net loss of $1.037 under IFRS.

The bottom line for the full year is down from a FY 2008 net profit of $2.029 billion with FY EBITDA falling from $5.358 billion to $844 million, as FY sales revenues fell from $22.393 billion to $13.054 billion.

Severstal also posted a 4Q 2009 net loss of $162 million after a 3Q net profit of $71 million, reflecting currency operations and a deferred tax hit . However EBITDA rose from 3Q $373 million to 4Q $630 million, as 4Q revenues rose to $3.919 billion from $3.487 billion.

Despite the FY and 4Q net loss Severstal CEO, Alexey Mordashov, was upbeat about the outlook, noting that 2009 had been an exceptionally difficult year for the sector, and that Chinese demand was underpinning a rebound in steel prices

“2009 was a difficult year for the global steel industry but the decisive actions we took during the year leave the Company well positioned for 2010. Solid economic growth in emerging markets and a gradual recovery of demand in mature markets have improved the outlook for 2010. Furthermore, growing demand from China for raw materials has already led to higher spot prices for iron ore and coking coal in 2010, a trend we believe will be sustained during the year. In this trading environment, our flexible cost base, vertically integrated model and solid financial position provide us with additional competitive advantage to benefit from improving steel markets and invest in growth and an enhanced product mix. We look forward to 2010 with confidence.”