OREANDA-NEWS. On 17 March 2008 Open Joint Stock Company Magnitogorsk Iron and Steel Work, one of the leading integrated steel making companies, announced the results of its consolidated financial statements for the 12 months 2007 according to US GAAP.

The revenue of MMK Group of Companies in the 12 months of 2007 increased by 27.6% compared to the 12 months of 2006 and amounted to USD 8 197 million.

The operating income reached USD 2,079 million or 25.4% of the revenue. The growth compared to the 12 months 2006 amounted to 17.8%.

The consolidated net income of the Company in the 12 months 2007 increased by 24.3% against the same period of last year and amounted to USD 1,772 million, i.e. USD 0.164 per share. The net income accounted for 21.6% of the revenue.

EBITDA for the 12 months 2007 reached USD 2,342 million or 28.6 % of the revenue. Compared to the 12 months of 2006 EBITDA of the Company increased by USD 337 million or 16.8%.

Growth of crude steel production at OJSC MMK by 6.5 % secured by increasing production at the new electric arc furnaces, allowed to raise the output and sales of steel products by 6.8%  (in tons) against the previous year. 

Costs increase in 2007 mainly related to raw material price rise was compensated by the growth of average prices for steel products. Thus the average price of shipped steel products, produced by OJSC MMK, increased by USD 92 or 18.6% and reached USD 589 per ton. The average price growth is due to the world steel markets conditions and increasing sales in the domestic market where the average price of shipped steel products in 2007 was USD 154 per ton higher than in the export market.

A certain decline of relative profitability in 2007 against the previous year was made up by the absolute growth of revenue and income as well as increased earnings and income per ton of produced steel. Thus EBITDA per tone of steel produced increased by USD 16 or 9.7 %.     

Growth of net earnings per share amounted to USD 0.024  or 17.1%.

The MMK Group financial performance is characterized by high liquidity and low dependency on external sources of financing.

Cash expenditures for investments in fixed and intangible assets and acquisitions of subsidiary companies in the 12 months 2007 amounted to USD 1,317 million.

Dividend payments under OJSC MMK’s shares for 12 months 2007 amounted to USD 547 million (excluding dividends under treasury shares).