Russian steelmaker Novolipetsk Iron & Steel Corp. (NLMK.RS) said Friday its first-quarter net profit fell 78% on the year earlier to $38 million, noting that challenges in the global steel market remain. On the previous quarter, the company rebounded from a loss.

MAIN FACTS:
--First quarter revenue totaled $2.86 billion, down 8% from $3.1 billion a year earlier.
--Earnings before interest, taxes, depreciation and amortization, or Ebitda, stood at $318 million, down 26% from $432 million a year ago.
--Net debt declined 2% on the year to $3.453 billion from $3.538 billion.
--Novolipetsk says it expects 2Q revenue to rise 2%-3% on the quarter, driven by seasonal recovery of demand in Russia and a corresponding increase in prices for rolled steel in the region, as well as a time lag in the recognition of export sales.
--"As the situation in the global steel markets remains challenging the management confirms its commitment to investment discipline and tight cost control across the entire value chain," said Chief Financial Officer Grigory Fedorishin.