The revenue of Severstal under Russian Accounting Standards (RAS) grew by 6.3 percent to some RUR113.594bn (approx. USD4.62bn) in the first nine months of 2006 compared to the same period a year earlier, the company's statement reads according to RBC. Net profit went down by 7.39 percent to about RUR23.475bn (approx. USD881m), gross profit decreased by 7.15 percent to around RUR36.939bn (approx. USD1.39bn), sales revenue fell by 7.29 percent to almost RUR34.652bn (approx. USD1.3bn), and pretax profit dropped by 4.5 percent to just under RUR32.586bn (approx. USD1.22bn).
Severstal is the second largest steel company in Russia. In 2005 it produced 10.8 million tons of steel (+3.5%, year-on-year), in the first half of 2006 - 6.05 million tons (+18.6%, year-on-year). Severstal’s primary beneficiary is the Chairman of the Company’s Board of Directors Alexei Mordashov holding 90.09% of the company’s shares. In 2005, consolidated IFRS net profit of Severstal totaled $1.75 billion (+28.2% against year-on-year result), revenue grew by 23% to $8.624 billion.