Russian steelmaker, Mechel, has posted a FY 2008 Net Income of $1.14 billion under U.S. GAAP.

The bottom line is up 24.9% on the $913 million Net result posted for FY 2007, with EBITDA up 23% year on year to $2.04 billion, on the back of a 49% increase in Revenues to $9.95 billion.

The FY result reflected increased steel prices and sales volumes over 9M 2008 before the global steel market collapsed in the wake of the global credit crisis and ensuing economic slowdown during 4Q 2008. Mechels 4Q results reflected the impact of the downturn, showing a 4Q Net Loss of $496 million, down 50% quarter on quarter, with a 183% quarter on quarter slump in 4Q 2008 EBITDA to minus $817 million, on the back of 4Q 2008 Revenues of $1.37 billion, down 57% quarter on quarter.

CEO, Igor Zyuzin, was upbeat about the full year result, despite the disastrous fourth quarter, with the company idling production capacity and slashing capital expenditure, highlighting long term coking coal agreements with Hyundai Steel, revised credit lines with VTB and GazpromBank, and new products in the company's range as key developments.

“Overall, despite crisis developments in the world economy the fourth quarter, the year of 2008 was a successful one. Once again we managed to achieve record figures in revenue, operating income, and net profit, which allowed us to obtain a certain degree of security before market conditions for Mechel’s products changed for the worse. Moreover, even during the most challenging fourth quarter on operating level, not taking into consideration inventory provision, Mechel’s subsidiaries generated profit."