Mechel steel giant's net profit down 25% in 1H06
Mechel, Russia's leading steel and alloys producer, said Wednesday its U.S. GAAP net profit in the first six months of 2006 dropped 25.4%, year-on-year, to $181.664 million, RIA Novosti reports.
The steel giant said its earnings for the period declined 7.2%, to $1.93 billion. Earnings before interest, taxes, depreciation and amortization (EBITDA) for the reporting period went down 18.5%, to $344.7 million.
Established in 2003, Mechel is also Russia's second rolled steel producer. It has several metal plants in Russia, Romania and Lithuania. It unites producers of coal, ore, nickel, steel, and highly processed steel products for the domestic and foreign markets.
Mechel acquired a controlling stake in a Moscow coke gasworks, Moskoks, for about $300 million in early October, and launched a new coalmine in southwestern Siberia in late September, which cost $100 million.
The company said the moves are in line with its strategy, which prioritizes the development of its mining segment and expansion on the coal and coke-chemical markets.