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Severstal NA's Results a 'Testament to Transformation' Taking Place at Company
08/01/2014 - Severstal North America (SNA), a leading steel producer in the United States and a subsidiary of Severstal, reported another strong financial performance in the second quarter of 2014.
SNA delivered significant growth in sales volumes of 6% q/q, while average selling prices decreased by 1.0% to US$827/t, partially due to a lower share of HVA products in the sales portfolio.
Revenue of US$1,066 million was up 4.9% q/q driven by higher sales volumes. H1 2014 revenue of US$2,082 million was also up, by 10.6% y/y, on better pricing and higher utilization rates.
Q2 EBITDA was 33.3% higher q/q at US$100 million primarily reflecting improvements at Dearborn’s operations. Results at the Columbus operations remained strong, with EBITDA/t firm at US$108/t. The 2nd quarter’s EBITDA was one of the highest ever recorded by SNA in its ten-year history.
EBITDA of the whole division in H1 2014 was up 86.2% y/y at US$175 million.
Additionally, in Q2, SNA became cash positive q/q and H1 2014 cash generation considerably increased with 344% growth y/y on the back of higher EBITDA and net working capital release.
“SNA’s outstanding results this year are a testament to the transformation currently taking place across several critical areas — safety, talent, culture, operations, quality and commercial. Given the solid and sustainable platform that has been built over the last year, we are very excited about the future growth and profitability of our plants, especially in light of the recent news of their upcoming divestiture,” said Saikat Dey, CEO of Severstal North America.
Revenue of US$1,066 million was up 4.9% q/q driven by higher sales volumes. H1 2014 revenue of US$2,082 million was also up, by 10.6% y/y, on better pricing and higher utilization rates.
Q2 EBITDA was 33.3% higher q/q at US$100 million primarily reflecting improvements at Dearborn’s operations. Results at the Columbus operations remained strong, with EBITDA/t firm at US$108/t. The 2nd quarter’s EBITDA was one of the highest ever recorded by SNA in its ten-year history.
EBITDA of the whole division in H1 2014 was up 86.2% y/y at US$175 million.
Additionally, in Q2, SNA became cash positive q/q and H1 2014 cash generation considerably increased with 344% growth y/y on the back of higher EBITDA and net working capital release.
“SNA’s outstanding results this year are a testament to the transformation currently taking place across several critical areas — safety, talent, culture, operations, quality and commercial. Given the solid and sustainable platform that has been built over the last year, we are very excited about the future growth and profitability of our plants, especially in light of the recent news of their upcoming divestiture,” said Saikat Dey, CEO of Severstal North America.
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