According to the financial report of NLMK’s Nizhneserginskiy metal goods plant (complied in accordance with the Russian Accounting Standards), the enterprise’s net profit plunged by 650.82% in 2009.

The plant’s sales revenues decreased by 46.82% last year and reached 19.3 million RUR, whereas its gross profit came to 1.9 million RUR.

‘The decrease in revenues and gross profits in the fourth quarter of 2009 in particular in the year 2009 in general by 23% and 46%, respectively, was brought about by reduced sales volumes and decreasing selling prices. This, in its turn, was caused by the seasonal drop in demand on the construction market. As for the fact that our net loss in the last quarter of 2009 was four times greater than that in the third quarter of 2009, this had to do with the need to create bad debt reserves, as our accounting policies require,’ Nizhneserginskiy metal goods plant reports.

‘In general, the year 2009 was worse than the year earlier in terms of finances because of smaller sales volumes, decreased selling prices, and increased sales of low-processing goods,’ the plant’s representatives say.