FOREX Forecast » OAO Novolipetsk Iron and Steel Works "

OAO Novolipetsk Iron and Steel Works “issued today its financial results for the 3 rd quarter of 2008, prepared according to Russian Accounting Standards (IFRS).

financial results of OAO “NLMK” for the 3 rd quarter 2008 (All amounts in thousands rubles except%)

; 3 quarter of 2008 2 quarter of 2008 3 quarter of 2007 Change 3 square. 2008 /2 square. 2008 Change 3 square. 2008 /3 square. 2007
Revenue 65 372 070 58 945 257 39 555 687 10,9% 65,3%
Gross profit 32 438 900 25 599 979 16 170 311 26,7% 100,6%
profit from sales 28 531 699 21 659 853 13 292 804 31,7% 114,6%
Net profit 30 680 819 36 897 871 10 288 479 -16,8% 198,2%

revenue growth of 3 NLMK quarter of 2008 compared with analyzed quarters due primarily to increases in the prices of metal products, as well as changes in sales towards increasing the proportion of products with high added value.

The decline in net profit for the 3 quarter 2 quarters of this year is due to the high level of income in the quarter 2, in the form of dividends received from subsidiaries, the report said issuer. Excluding the dividend net profit would have risen by 47% on the previous quarter.

As stated in the announcement of the company, the world financial crisis has led to a decline in business activity, both abroad and in Russia, which in turn led to a reduction in demand for steel and falling prices. Because of these negative trends, the company expects a significant reduction in the financial results of OAO NLMK and major subsidiaries in the Group 4 quarter of this year.

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