Russia’s Severstal sees Q3 earnings dip on weaker pricing environment

Russian steelmaker Severstal saw a 1% year-on-year decrease in its third quarter earnings, the company said on Thursday November 14.

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Severstal said the slight fall was a result of a weaker steel and bulk shipment pricing environment.

The steelmaker’s earnings before interest, tax, depreciation and amortisation (Ebitda) stood at $543 million for the period, down from $546 million in the third quarter of 2012.

Severstal’s Ebitda margin rose to 17%, from 15.2% in the third quarter of last year.

Revenue at the company, which has operations in Russia and the USA, was down 11% year-on-year in the July-September quarter, at $3.19 billion.

Severstal expects steel demand in Russia and the USA to be “slightly weaker on seasonal factors” for the rest of the the year.

All the percentages mentioned in this story have been calculated by Steel First as Severstal does not provide the relevant year-on-year comparisons.

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