Russian steelmaker MMK reported net profit of $159 million for the second quarter on Friday, outperforming analysts' expectations for profit of $108 million.
The company was able to swing back to profit in the second quarter thanks to a foreign exchange gain of $86 million, increased output and higher steel prices, a company spokesman said.
A year earlier MMK, controlled by Russian businessman Viktor Rashnikov, posted a net loss of $155 million. In the first quarter the company had a $79 million net loss.
Its earnings before interest, taxation, depreciation and amortization, or EBITDA, increased to $399 million for the second quarter compared to $291 million a year earlier and analysts' forecast for $385 million.
The company said its core earnings were improved thanks to an increase in sales, an improved production structure, a recovery in steel prices in Russia and a decline in global iron ore prices.
MMK's revenue increased 2 percent year-on-year to $2.2 billion due to a rise in steel prices on the domestic market and higher sales volumes.
In July, the company said its second-quarter crude steel production rose 6.3 percent quarter-on-quarter to 3.4 million tones.
"MMK Group's financial results for Q3 2014 will be affected by a marginal reduction of output volumes at the main production site and by a decrease in global iron ore indices," the company said, referring to two factors that could potentially offset each other.
See also:
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
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 every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.