Severstal-metiz reports on its financial results for the first 9 months of 2008

The 9 months net profit of the group of companies (according to IFRS*) has increased by 4.8 times compared with the same period in 2007, reaching $73 mln.

Revenue increased by 28.7 per cent, from $754.4 mln in 2007 to $970.7 mln in 2008. EBITDA was $119 mln; 121.6 per cent higher.

According to , the CEO of the group of companies, ‘Severstal-metiz showed good results in the 9 months due to stable demand for wire and wire products in our key markets especially in the 1st half of the year. We even saw improvement in demand for some products’.

Among other factors contributing to the result were increases in selling prices, cost reductions, and an increase in the share of high value added products in the company’s portfolio.

‘From the 3rd quarter of the year we have experienced reductions in demand in, automotive, construction and other industrial sectors which are important to the company. Our results today are influenced not only by traditional seasonality but also by the financial crisis which has led to reduced availability of funds among end consumers’, – continues .

In her opinion, demand will not recover until at least the end of the year. ‘The current situation is a bit worse than the usual seasonal reduction in demand we see. However, on the positive side, this gives us development opportunities to strengthen our relationships with key customers, to offer comprehensive supply solutions in the market, to reduce costs and implement investment projects’, –  summarizes .