Severstal posts 2.3% rise in RAS net profit in 2006

Severstal [RTS: CHMF] said Monday its net profit, calculated to Russian Accounting Standards (RAS), grew 2.3%, year-on-year, in 2006, to 35.93 billion rubles (about $1.35 billion), RIA Novosti reports.

Russia's second-largest steel producer said its net profit increased 18.47%, quarter-on-quarter, in October-December 2006, to 11.62 billion rubles (about $446.8 million).

Severstal attributed its net profit growth to increased sales.

Severstal sought a merger with the world's second-largest steelmaker, Arcelor, but the deal, signed May 26, 2006, fell through when it was rejected by Arcelor shareholders June 30, to clear the way for a takeover of the Luxembourg-based company by the world's largest steel company, Mittal Steel.