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NLMK Group Releases Q1 Trading Update
04/17/2015 - Crude steel output declined 6% from Q4 2014 3.87 million tons due to scheduled maintenance work at NMLK’s plants in Portage, Ind., and Lipetsk, Russia.
Production at NLMK USA totaled 94,000 tonnes, a decrease of 44.4% from Q1 2014 and 42% from Q4 2014. Finished steel sales declined to 428,000 tons, a reduction of around 11% from the previous quarter and 6% from the previous year. The company cited a seasonally weak Russian market in Q1 and pressure from imports as contributing factors to the decline.
The fall in output by NLMK USA and Lipetsk were partially offset by increased production at NLMK Long Products, which jumped 31% from Q4 2014, and increased processing of semis stocks from Lipsetsk that were built in the end of 2014.
Total steel segment sales increased 2% from last year, totaling 3.21 million tons, driven mainly by exports to third party customers. Long steel sales dipped 13% to 570,000 tons from last year due to lower demand from distrbutors as they built stocks in the end of 2014. Rolled product segment sales decreased to 540,000 tons, down 3% from last year, due to softened demand from the U.S.
Q2 2015 operating results are expected to grow driven, among other factors, by the seasonally improved buying activity in the Russian market.
The fall in output by NLMK USA and Lipetsk were partially offset by increased production at NLMK Long Products, which jumped 31% from Q4 2014, and increased processing of semis stocks from Lipsetsk that were built in the end of 2014.
Total steel segment sales increased 2% from last year, totaling 3.21 million tons, driven mainly by exports to third party customers. Long steel sales dipped 13% to 570,000 tons from last year due to lower demand from distrbutors as they built stocks in the end of 2014. Rolled product segment sales decreased to 540,000 tons, down 3% from last year, due to softened demand from the U.S.
Q2 2015 operating results are expected to grow driven, among other factors, by the seasonally improved buying activity in the Russian market.
NLMK Group is the largest steelmaker in Russia and one of the most efficient in the world. NLMK’s high-quality metal products are used in various industries, from construction and engineering to the manufacture of power-generating equipment and offshore wind turbines. NLMK's production assets are located in Russia, Europe, and the United States. The Company’s liquid steel production capacity is over 17 million tonnes per year, of which about 16 million tonnes are produced in Russia. Sales in 2014 were 15.1 million tonnes (+2% year-on-year). 2014 revenue totaled $10,396 million, EBITDA grew by 58% to $2,383 million, EBITDA margin was 23% (up from 14% in 2013). In 2014 net debt dropped by 41% year-on-year to $1,590 million. NLMK’s ordinary shares are traded on the Moscow Stock Exchange (ticker symbol: NLMK), and its global depositary shares are traded on the London Stock Exchange (ticker symbol: NLMK:LI).
