OREANDA-NEWS. On July 02, 2007 OAO Severstal (LSE: SVST; RTS: CHMF), reported first quarter results reflecting a significant improvement compared with the same period last year and a continuation of positive Q4 trends, reported the press-centre of OAO Severstal.  

Q1 2007 Highlights:

Strong year-on-year growth

Favourable prices across all geographies and markets

Increases in raw materials, energy and labour costs passed on to customers

2006 investment programme yielding good returns

A record $3,677 million in revenues, up 34,9% compared with Q1 2006.
 
Strong EBITDA growth at $921 million in Q1 2007, up 43% from $644 million in Q1 2006

Improved efficiency, better product mix and cost control added around $100m to EBITDA compared to Q1 2006

Net profit up 82,5% to $396 million for Q1 2007 from $217 million in Q1 2006

Strong Russian domestic market for steel and iron ore products

Steel prices in Russia and Europe demonstrating  sustainable growth

Strong performance in the mining business: EBITDA up 50,0% year-on-year

Significant improvement in Lucchini

Q1 investment programme of $267 million in line with budget and forecast

Continuation of the positive trends seen in Q4 2006

Alexei Mordashov, CEO of OAO Severstal, said, “I am pleased to report that Severstal has made a positive start to the new financial year with continued growth. We are building successfully on the changes we made last year to provide us with a strong platform for the future.”