NLMK: VIZ-Stal’s revenue goes down due to dropping sales
The revenues of VIZ-Stal dropped by 14% in the first quarter of 2011 compared with the first quarter of 2010 because of the dropping transformer steel sales, as the company’s export deliveries have not been accounted for yet.
Another reason for the revenues to go down was the decrease in the average selling price, partially due to the improved ruble exchange rate, Novolipetsk Iron & Steel Works (NLMK) reports.
The price of the semi-finished rolled stock NLMK delivers, combined with the factors above, determined the seasonal drop in profitability in terms of the gross profit from 26% down to 14%.
As for the second quarter, we expect an increase in the company’s operational and financial performance figures, which has to do with the growing sales volumes and the increased price of the end products,’ the company points out.
Another reason for the revenues to go down was the decrease in the average selling price, partially due to the improved ruble exchange rate, Novolipetsk Iron & Steel Works (NLMK) reports.
The price of the semi-finished rolled stock NLMK delivers, combined with the factors above, determined the seasonal drop in profitability in terms of the gross profit from 26% down to 14%.
As for the second quarter, we expect an increase in the company’s operational and financial performance figures, which has to do with the growing sales volumes and the increased price of the end products,’ the company points out.
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