NLMK lost more than 20 percent of net profit in the first half of 2013

The net profit of the Novolipetsk Metallurgical Plant in January - July 2013 amounted to 8 billion 422 million rubles, which is 20.62 percent less than in the APPG -2012 (10 billion 609 million rubles). This was announced today by the press service of NLMK.

Meanwhile, the quarterly revenue of the enterprise increased compared to the previous quarter by 1.6 percent, amounting to 56 billion 715 million rubles. However, this figure is 9.4 percent lower than the APPG-2012 indicator.

The press service of NLMK explained the increase in sales in the second quarter by improving the structure of the implementation of the metal rolling, with a slight decrease in the total sales. The reduction in the firing to the APPG-2012 in NLMK is explained by a general decrease in prices for metal products.

"Gross profit increased by 31 percent compared to the previous quarter due to a decrease in production cost with a slight increase in revenue. These factors, along with a decrease in managerial expenses relative to the previous quarter, influenced the growth of profits from sales," the company's press service reports.

In addition, an increase in net profit by 36 percent compared to the previous quarter was affected by the reflection of a positive exchange rate difference in other income, NLMK emphasizes.