OREANDA-NEWS. On 15 April 2008 was announced, that MMK Announces Operational Trading Update Q1 2008 Results under Russian Accounting Standards.

Key Financial Highlights

Revenue increased by 21% to RUR 52,3 bln (RUR 43,1 bln in 1Q2007)

Operating income on the level of RUR  11,6 bln (RUR 11,7 bln in 1Q2007)

Net income (net of the effect of financial investments revaluation) grew by 2% to RUR 8,5 bln (RUR 8,4 bln in 1Q2007)

Key Operational Highlights

Crude steel production up 14% to 3.6m tons compared to 1Q07

Commercial steel products output increased 12% to 3.3 m tons (1Q2008 to 1Q2007)

A rise in product prices across the board compared to the end of 2007, including 22% for flat rolled products and 23% for long products

Domestic demand and global industry dynamics to drive further price increases in Q2

Commenting on the first quarter results, Victor Rashnikov, Chairman of MMK’s Board of Directors said:

“In the first quarter of 2008 we have shown strong positive financial and operational results. These achievements were a result of the company’s focus on high value added products, our strong position in the growing domestic market and continuing significant investments in advanced technology and equipment.

Already this year we have made further significant steps toward resource self-sufficiency through our strategic partnership with coal producer Belon and the development of Prioskolsky iron ore deposit. Against a background of record steel prices and with a strong outlook for the demand for our products in domestic and export markets, we look forward with confidence to the year ahead."

The 1 quarter 2008 results under Russian Accounting Standards (in Russian) are available at:

http://www.mmk.ru/rus/shareholders/b_reports/r_reports/index.wbp

Presentation of the results (in Russian) is available here:

http://www.mmk.ru/rus/shareholders/presentations/index.wbp