According to the steel manufacturer’s financial report (complied in accordance with the Russian Accounting Standards), VIZ-Stal’s net profit plummeted by 73.59% last year compared with the year 2008. The company’s revenues decreased 51.8% in 2009.

The enterprise’s gross profit amounted to 1.6 million RUR in the last quarter of 2009 and to 4.9 million RUR by the end of last year.

‘A little downfall in the company’s financial performance in the fourth quarter of 2009 had to do with the reduced average selling prices, even though the sales volumes did go up a bit. Also, our administrative expenses increased in the last quarter of 2009 (which was an expense of one-time nature), thus leading to a 7% drop in sales profit,’ OOO VIZ-Stal reports.

‘The reason we did not do quite so well in the year 2009 was the dropping demand for transformer steel at the time of a recession, which made the selling prices go down and the sales volumes drop by 45% against the year 2008,’ the company’s experts explain.