MMK posts 2Q 2009 Net Profit of $59 million

Russian Steelmaker, Magnitogorsk Iron and Steel or MMK, has posted a 2Q 2009 Net profit of $59 million under IFRS.

The bottom line shows a sharp quarter on quarter turnaround from the $110 million loss posted for 1Q 2009, with EBITDA more than doubling over the quarter to $207 million, as Sales rose 73% quarter on quarter to $1.038 billion.

The 2Q turnaround couldn’t prevent MMK from posting a 1H 2009 Net Loss of $51 million, after posting a Net Profit of $816 million over the same period in 2008, as 1H Revenues fell to $2.003 billion, from $5.653 billion in 2008.

More positively the company noted a 2Q increase in sales of higher value products, and a sharp reduction in Net Debt to $865 million. It says it is expecting a 35% increase in production during 3Q with domestic sales expected to jump 30%, as it retains a focus on higher value added production.