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Evraz Group’s major operating subsidiaries report 1Q 2007 RAS Financial Results

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Evraz Group’s major operating subsidiaries report 1Q 2007 RAS Financial Results

Evraz Group S.A. (LSE: EVR) announces that its major Russian operating subsidiaries1 have filed financial results with the Federal Financial Markets Service of the Russian Federation (FFMS) for the three months ended March 31, 2007. The results are prepared in accordance with Russian accounting standards (RAS).

The filing of RAS accounting results for Evraz’s major Russian operating subsidiaries is a Russian regulatory requirement. RAS accounting results differ materially from IFRS and are not comparable to financial statements prepared in accordance with IFRS. The RAS accounting results of Evraz's major Russian subsidiaries are not indicative of the financial condition or results of operations of these entities or of Evraz Group S.A. under IFRS. Reference should be made only to Evraz Group S.A.’s consolidated financial statements prepared in accordance with IFRS for information with respect to Evraz’s financial condition and results of operations. RAS accounting results are not approved by external auditors and the Internal Audit Committee of Evraz Group S.A.

Evraz Group S.A. publishes consolidated financial statements prepared in accordance with IFRS for the six months ended June 30 and for the year ended December 31, in each year.

Highlights

  • Higher sales volumes and b prices for steel products contributed to further profit growth at NTMK and Zapsib

The net profit of NTMK and Zapsib for 1Q 2007 went up 66.3% and 130.7% respectively vs. 1Q 2006 due to higher sales volumes and a ber pricing environment in both Russian and export markets. Net profit fell by 18.4% at Zapsib compared with 4Q 2006 as a result of a marginal decline in sales volumes, seasonal product mix change and increased production costs on the back of higher iron ore and scrap prices.

  • KGOK and VGOK profit increased significantly due to higher prices

The 1Q 2007 net profit rose to 2,293 million roubles (+118.2% year-on-year) at KGOK and to 366 million roubles at VGOK due to higher prices and expanded production volumes driven by b demand from the steel sector.

1Q 2007 RAS Financial Results for Major Subsidiaries
(All amounts are in millions of roubles, unless specified otherwise)

OAO Nizhny Tagil Iron and Steel Plant (NTMK)

1Q 20071Q 20061Q 2007/
1Q 2006,
change
4Q 20061Q 2007/
4Q 2006,
change
Revenue21,14314,82142.7%20,3024.1%
Gross profit6,7564,63645.7%6,10710.6%
Operating profit5,9553,92051.9%5,22014.1%
Net profit4,5452,73366.3%3,10946.2%

OAO West Siberian Iron and Steel Plant (Zapsib)

1Q 20071Q 20061Q 2007/
1Q 2006,
change
4Q 20061Q 2007/
4Q 2006,
change
Revenue19,84714,08540.9%20,239(1.9)%
Gross profit5,3312,70397.3%6,191(13.9)%
Operating profit4,4781,941130.7%5,347(16.3)%
Net profit3,1621,371130.7%3,873(18.4)%

OAO Kachkanarsky Mining and Processing Integrated Works (KGOK)

1Q 20071Q 20061Q 2007/
1Q 2006,
change
4Q 20061Q 2007/
4Q 2006,
change
Revenue5,2152,90879.3%4,9245.9%
Gross profit3,3251,409135.9%3,347(0.6)%
Operating profit3,0671,257144.0%3,124(1.8)%
Net profit2,2931,051118.2%2,2223.2%

OAO Vysokogorsky Mining and Processing Integrated Works (VGOK)

1Q 20071Q 20061Q 2007/
1Q 2006,
change
4Q 20061Q 2007/
4Q 2006,
change
Revenue1,67693379.6%1,48313.0%
Gross profit708175304.6%59119.9%
Operating profit59799502.1%41543.8%
Net profit366(59)n/a29125.8%

1 - The major subsidiary companies include: OAO Nizhny Tagil Iron and Steel Plant (NTMK); OAO West Siberian Iron and Steel Plant (Zapsib); OAO Kachkanarsky Mining and Processing Integrated Works (KGOK); OAO Vysokogorsky Mining and Processing Integrated Works (VGOK)

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For further information:


Evraz Group S.A.
Irina Kibina
Vice President
Corporate Affairs and Investor Relations
Tel: +7 495 232 1370
IR@evraz.com