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Evraz Group’s major operating subsidiaries report 3Q 2006 RAS Financial Results

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Evraz Group’s major operating subsidiaries report 3Q 2006 RAS Financial Results

November 16,2006 - Evraz Group S.A. (LSE: EVR) announces that its major Russian operating subsidiaries[1] have filed financial results with the Federal Financial Markets Service of the Russian Federation (FFMS) for the three months ended September 30, 2006. 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.

[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)

Highlights

  • Higher sales volumes and increased prices for steel products fuelled profit growth at NTMK and ZapSib

The net profit of NTMK and ZapSib for 3Q 2006 went up 95.7% and 672.2% respectively vs. 3Q 2005 as a result of increased sales volumes and stronger prices in the domestic and export markets while the increased costs for iron ore were partially offset by lower prices for coking coal year-on-year.ZapSib’s outstanding results are particularly attributable to significant increase in slabs sales after commissioning of a slab caster in November 2005, and growth in construction products sales driven by robust demand in the Russian market.

  • KGOK and VGOK net profit increase significantly due to strong prices

The two GOKs’ 3Q 2006 net profits expanded more than fivefold due to higher prices and growing production volumes at KGOK. The prices increased on average by 30-45% year-on-year and more than 10% vs. the previous quarter.

3Q 2006 RAS Financial Results for Major Subsidiaries
(All amounts are in millions of roubles, unless specified otherwise)

OAO Nizhny Tagil Iron and Steel Plant (NTMK)

3Q 2006

3Q 2005

3Q 2006 /
3Q 2005
%

2Q 2006

3Q 2006/
2Q 2006
%

Revenue

20 236

16 089

25,8%

18 723

8,1%

Gross profit
7 997
4 672
71,2%
7 306
9,5%
Operating profit
7 197
3 916
83,8%
6 514
10,5%
Net profit
5 169
2 642
95,7%
4 377
18,1%


OAO West Siberian Iron and Steel Plant (ZapSib)

 

3Q 2006

3Q 2005

3Q 2006 /
3Q 2005
%

2Q 2006

3Q 2006/
2Q 2006
%

Revenue

20 694

11 741

76,3%

18 310

13,0%

Gross profit
7 557
2 234
238,3%
5 907
27,9%
Operating profit
6 712
1 405
377,8%
5 162
30,0%
Net profit
5 044
653
672,2%
3 434
46,9%



OAO Kachkanarsky Mining and Processing Integrated Works (KGOK)

3Q 2006

3Q 2005

3Q 2006 /
3Q 2005
%

2Q 2006

3Q 2006/
2Q 2006
%

Revenue

4 490

2 419

85,6%

3 759

19,5%

Gross profit
2 778
1 013
174,2%
2 115
31,3%
Operating profit
2 544
828
207,4%
1 937
31,3%
Net profit
1 903
364
423,2%
1 106
72,0%


OAO Vysokogorsky Mining and Processing Integrated Works (VGOK)

3Q 2006

3Q 2005

3Q 2006 /
3Q 2005
%

2Q 2006

3Q 2006/
2Q 2006
%

Revenue

1 362

1 175

15,9%

1 243

9,5%

Gross profit
548
202
170,6%
429
27,7%
Operating profit
449
111
305,7%
349
28,5%
Net profit
311
58
224%
224
39,1%

 ###

For further information:

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