Support The Moscow Times!

Severstal Profit Down 90%

Severstal, Russia's second-biggest steel producer, said on Monday that profit would be flat in the second quarter of 2013 as it reported a 90 percent year on year fall in first-quarter net earnings.

The company has been struggling to cope with weak prices as a growth slowdown in China and Europe's debt crisis hit demand.

Severstal, controlled by billionaire Alexei Mordashov, posted quarterly net profit of $44 million, undershooting average analyst forecasts of $69 million.

"The global economic environment remains uncertain and this impacts our markets. Overall we expect our [second quarter] ... 2013 results to be broadly similar to our Q1 2013 numbers," Mordashov said in a statement.

The company said earnings before interest, tax, depreciation and amortization (EBITDA) fell 25 percent year on year to $425 million in the quarter, while revenue was down 10 percent at $3.32 billion.

(Reuters)

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more