Russian metallurgists make losses and do not believe in the best is yet to come

Mechel, which was the last among large Russian metallurgic companies that gave an account for 2012, made the largest loss – almost $1.7 billion. Like other companies, Mechel explains the situation with paper writing-off mainly. But as analysts, as the market players estimate the market perspectives as not optimistic.

Yesterday, Mechel published its consolidated accounting for 2012. The company’s proceeds decreased by 10% to $11.27 billion, corrected rate of EBITDA by 44.4% to $1.3 billion and the EBITDA profitability decreased from 19.1% to 11.8%. Mechel showed the record net loss in the sector - $1.66 billion against the profit in the amount of $727 million last year (the Evraz’s net loss made up $335 million and the MMK’s one - $94 million). The main losses of the Mechel’s incomes were given by the mining segment, which proceeds decreased by 21% to $3.3 billion (29% in the total structure of the company’s proceeds). The sales of the metallurgic segment decreased by 5.5% to $6.8 billion (60% of the proceeds). At the same time, Mechel connects the losses with not the main business, but with nonfinancial writing-off.