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Severstal Posts $352M Quarterly Loss

Severstal posted a wider fourth-quarter loss after deciding to sell U.S. plants and revaluing its unprofitable Italian unit.

Severstal reported a net loss of $352 million, compared with a loss of $162 million a year earlier, it said Thursday.

The steelmaker posted a $1.94 billion full-year loss from discontinued operations at its U.S. plants and at Italian unit Lucchini, resulting in a $577 million net loss for the year. Severstal sold 51 percent of Lucchini in June and is seeking to sell the rest once it completes $767 million of debt restructuring at the division.

The company offered three of its five U.S. plants for sale after the mills became unprofitable.

The Severstal Resources division reported earnings before interest, tax, depreciation and amortization of $510 million in the fourth quarter, accounting for 57 percent of overall EBITDA. Total sales rose 7.5 percent to $3.73 billion in the quarter, while full-year sales jumped 42 percent to $13.6 billion.

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