2005 interim RAS financial results for Evraz Group’s major operating subsidiaries
Moscow, August 3, 2005. – Evraz Group S.A. (LSE: EVR), one of the leading vertically integrated steel production and mining businesses with operations mainly in Russia, wishes to disclose today that its major Russian operating subsidiaries* have filed financial results for the six months to June 30, 2005, with the Federal Financial Markets Service (FFMS). The results are prepared in accordance with Russian accounting standards (RAS)**.
- Key mining enterprises quadruple profits.
|Growth in mining operations benefited from raw material prices with strong top-line and bottom-line growth at KGOK and VGOK.|
- Strong profit growth at NTMK.
|Increased sales volumes, including strong revenue growth from sale of vanadium slag - a by-product from processing of high vanadium content iron ore – drove strong revenue (+61% year-on-year) and profit (+64% year-on-year) increases at NTMK.|
- Weaker performance at Zapsib and NKMK due to softening of the steel prices and higher raw material prices.
|Zapsib encountered a seasonal decline in sales of construction steel during the first quarter of 2005 as well as a decrease in export of billets (semi-finished product) during the second quarter. It also experienced rising raw material prices leading to reduced profitability. NKMK achieved a substantial increase in revenues during the first half, but rising raw materials prices led to a slight decline in profits.|
Evraz Group S.A. will publish consolidated IFRS financial results for the six months to June 30, 2005 in October 2005.
* The subsidiary companies include: OAO Nizhny Tagil Iron and Steel Plant (NTMK); OAO West Siberian Iron and Steel Plant (ZapSib); OAO Novokuznetsk Iron and Steel Plant (NKMK); OAO Kachkanarsky Mining and Metallurgical Complex (KGOK); OAO Vysokogorsky Mining and Metallurgical Complex (VGOK); OAO Evraz Ruda (Evraz Ruda).
** Please read carefully the Disclaimer.
RAS accounting results announcements for the subsidiaries are a Russian regulatory requirement. Evraz Group results only offer a true, consolidated picture of the GDR owners’ investment. RAS accounting statements differ materially from IFRS and should not be inferred into or any attempt be made to infer the performance of the consolidated Group from them.
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