OJSC Mechel managed to reduce the net loss in the first quarter of 2013 by 71 percent

Today, June 18, 2013, OAO "Mechel" (NYSE: MTL), the Russian mining and metallurgical company published financial results of its activities in the first quarter of this year.

According to the data provided, Mechel received a net loss of $ 321 million, which is 71.2 percent less than in the last quarter of 2012. However, this is much more than analysts suggested, they say in Reuters. "Analysts were waiting for the loss of Mechel in the first quarter of $ 111 million," the Russian edition of the International Agency writes today.

The first quarter of 2013 was marked for the company Mechel with the withdrawal from the group of Romanian metallurgical assets, which was an important step towards optimizing the structure of the company's assets, said Evgeny Michel, General Director of OJSC, General Director of OJSC.

Recall that in mid -February, swordsman for $ 70 sold the Romanian company Invest Nikarom Srl at once five of his DUCTIL STEEL MECHEL enterprises, Campia Turzii S.A., Mechel Targoviste S.A., Mechel EUROPE METALLURGICAL DIVISION SRL and Laminorul S.A.

Meanwhile, in the first quarter of 2013, Mechel markedly improved his financial indicators. Due to the increase in demand and prices for iron ore and other metallurgical raw materials, the company managed to get operational profit and increase the profit indicator before tax (EBITDA).

However, consolidated revenue from the sales of the swordsman group decreased compared to the previous quarter by 1.6 percent - to 2 billion 481 million US dollars, which in turn is 15.9 percent less compared to APPG.

"The adverse price trends observed since the beginning of the year undoubtedly exert pressure on the financial results of the market players. At the same time, we are sure that the optimization of the structure of assets, a debt portfolio, control over costs and the investment program will allow Mecelle to successfully go through a period of a market decline," summarized his comment by Evgeny Michelle.

Consolidated financial results of OJSC Mechel for the first quarter of 2013