Press Releases

Mechel Reports the 1Q 2012 Financial Results

20June2012
Moscow, Russia June 20, 2012 Mechel OAO (NYSE: MTL), a leading Russian mining and steel group, today announced financial results for the 1Q 2012.

 

MECHEL REPORTS THE 1Q 2012 FINANCIAL RESULTS

Revenue amounted to $3.0 billion

Consolidated adjusted EBITDA amounted to $463 million

Net income attributable to shareholders of Mechel OAO amounted to $218 million

Moscow, Russia – June 20, 2012 – Mechel OAO (NYSE: MTL), a leading Russian mining and steel group, today announced financial results for the 1Q 2012.

Mechel OAO’s Chief Executive Officer Yevgeny Mikhel commented on the 1Q 2012 financial results:

“In this year’s first quarter, the company focused its efforts on implementing measures launched in the end of last year, aimed at optimizing operational planning and management of working capital, as well as improving our debt portfolio’s structure.

“As a result of the accounting period, despite the volatile market situation due to remaining difficulties in economic development of certain countries and regions that are customers of the Group’s products, we managed to make good on key issues — we optimized the debt, retained high levels of revenue and freed significant amount of funds by reducing stock, thus significantly improving the Group’s operational cash flow.”

 

Consolidated Results For The 1Q 2012

 


US$ thousand

1Q 2012

1Q 2011

Change Q-on-Q

Revenue from external customers

2,950,047

2,934,491

0.5%

Intersegment sales

468,563

545,338

-14.1%

Operating income

314,027

448,354

-30.0%

Operating margin

10.64%

15.28%

-

Net income attributable to shareholders of Mechel OAO

218,019

309,116

-29.5%

Adjusted EBITDA (1) (2)

463,402

566,852

-18.2%

Adjusted EBITDA, margin (1)

15.71%

19.32%

-

(1)       See Attachment A.

(2)        Adjusted EBITDA is EBITDA adjusted for effects of remeasurement of contingent liabilities at fair value, forex gain/(loss), net result on the disposal of non-current assets, amounts attributable to non-controlling interests and interest income.

 


US$ thousand

1Q 2012

4Q 2011

Change Q-on-Q

Revenue from external customers

2,950,047

2,929,159

0.7%

Intersegment sales

468,563

482,166

-2.8%

Operating income

314,027

377,494

-16.8%

Operating margin

10.64%

12.89%

-

Net income attributable to shareholders of Mechel OAO

218,019

201,155

8.4%

Adjusted EBITDA (1) (2)

463,402

536,342

-13.6%

Adjusted EBITDA, margin (1)

15.71%

18.31%

-

(1)       See Attachment A.

(2)       Adjusted EBITDA is EBITDA adjusted for effects of remeasurement of contingent liabilities at fair value, forex gain/(loss), net result on the disposal of non-current assets, amounts attributable to non-controlling interests and interest income.

 

The net revenue in 1Q 2012 increased by 0.5% and amounted to $3.0 billion compared to $2.9 billion in 1Q 2011. The operating income decreased by 30.0% and amounted to $314 million or 10.64% of the net revenue, compared to the operating income of $448 million or 15.28% of the net revenue in 1Q 2011.

 

In 1Q 2012, Mechel’s consolidated net income attributable to shareholders of Mechel OAO decreased by 29.5% to $218.1 million compared to the consolidated net income attributable to shareholders of Mechel OAO of $309.1 million in 1Q 2011.

 

The consolidated adjusted EBITDA in 1Q 2012 decreased by 18.2% to $463.4 million, compared to $566.9 million in 1Q 2011. Depreciation, depletion and amortization in 1Q 2012 for the Company were $155.9 million, an increase of 11.2% compared to $140.2 million in 1Q 2011.

 

 

Mining Segment Results For The 1Q 2012

 


US$ thousand

1Q 2012

1Q 2011

Change Q-on-Q

Revenue from external customers

932,741

828,124

12.6%

Intersegment sales

225,599

260,260

-13.3%

Operating income

275,568

292,056

-5.6%

Net income attributable to shareholders of Mechel OAO

241,504

290,675

-16.9%

Adjusted EBITDA(1) (2)

358,116

361,193

-0.9%

Adjusted EBITDA, margin (3)

30.92%

33.19%

-

(1)       See Attachment A.

(2)        Adjusted EBITDA is EBITDA adjusted for effects of remeasurement of contingent liabilities at fair value, forex gain/(loss), net result on the disposal of non-current assets, amounts attributable to non-controlling interests and interest income.

(3)       Adjusted EBITDA margin is calculated as a percentage of consolidated revenues of the segment, including intersegment sales.

 


US$ thousand

1Q 2012

4Q 2011

Change Q-on-Q

Revenue from external customers

932,741

1,061,435

-12.1%

Intersegment sales

225,599

263,744

-14.5%

Operating income

275,568

497,417

-44.6%

Net income attributable to shareholders of Mechel OAO

241,504

439,066

-45.0%

Adjusted EBITDA(1) (2)

358,116

592,825

-39.6%

Adjusted EBITDA, margin (3)

30.92%

44.74%

-

(1)       See Attachment A.

(2)        Adjusted EBITDA is EBITDA adjusted for effects of remeasurement of contingent liabilities at fair value, forex gain/(loss), net result on the disposal of non-current assets, amounts attributable to non-controlling interests and interest income.

(3)       Adjusted EBITDA margin is calculated as a percentage of consolidated revenues of the segment, including intersegment sales

 

 

 

 

 

 

Mining Segment Output and Sales For The 1Q 2012

 

Production:


Product name

1Q 2012,

thousand tonnes

1Q 2011,
thousand tonnes

1Q 2012 vs.
1Q 2011, %

Coal (run-of-mine)

6,413

5,985

7%

 

Product Sales:


Product name

1Q 2012,

thousand tonnes

1Q 2011,
thousand tonnes

1Q 2012 vs.
1Q 2011, %

Coking coal concentrate

3,181

2,803

14%

Including coking coal concentrate supplied to Mechel enterprises

628

825

-24%

PCI

503

138

265%

Anthracites

614

488

26%

Including anthracites supplied to Mechel enterprises

58

84

-31%

Steam coal

1,504

1,855

-19%

Including steam coal supplied to Mechel enterprises

355

459

-23%

Iron ore concentrate

1,118

1,068

5%

Including iron ore concentrate supplied to Mechel enterprises

150

462

-68%

Coke

889

899

-1%

Including coke supplied to Mechel enterprises

669

576

16%

 

Mining segment’s revenue from external customers in 1Q 2012 totaled $932.7 million or 32% of the consolidated net revenue, an increase of 12.6% over net segment’s revenue from external customers of $828.1 million, or 28% of the consolidated net revenue in 1Q 2011.

 

The operating income in the mining segment in 1Q 2012 decreased by 5.6% to $275.6 million, or 23.8% of total segment’s revenue, compared to the operating income of $292.1 million, or 26.8% of total segment revenue for the 1Q 2011. The adjusted EBITDA in the mining segment in 1Q 2012 decreased by 0.9% and amounted to $358.1 million compared to segment’s adjusted EBITDA of $361.2 million in 1Q 2011. The adjusted EBITDA margin for the mining segment in 1Q 2012 was 30.9% compared to 33.2% in 1Q 2011. Depreciation, depletion and amortization in the mining segment amounted to $81.6 million which is 1.7% lower than $83.0 million in 1Q 2011.

 

Mechel Mining Management Company OOO’s Chief Executive Officer Boris Nikishichev commented on the mining segment’s results: “Throughout the first quarter of 2012, the segment had to work in difficult conditions. Despite the continuing decrease in demand and correction of prices for raw materials, as well as temporary idling of several mines in Southern Kuzbass, we managed to retain high volume of coal product sales and increase the sales of iron ore concentrate, which ultimately ensured positive financial results of the entire division’s work.

“At Elga, now that rail tracks are laid along the entire way to the deposit, chief resources are focused on constructing a seasonal washing plant, in order to begin production and sales of coking coal concentrate as soon as possible. Once the construction of the plant is completed this summer we will ship off the first load of coking coal concentrate, starting to get returns on the large-scale investment into the project.

“Besides that, at Southern Kuzbass mining was resumed at the Sibirginskaya Underground mine in May, and construction of the mine’s second line, which will boost its annual capacity up to 2.4 million tonnes of coking coal, is fully under way.

“Recently we saw prices stabilize and Asian customers’ demand go up, creating a basis for improvement of the segment’s operational results in the second half of the year.”

 

 

Steel Segment Results For The 1Q 2012

 


US$ thousand

1Q 2012

1Q 2011

Change Q-on-Q

Revenue from external customers

1,649,133

1,757,122

-6,1%

Intersegment sales

78,989

88,951

-11,2%

Operating income

10,666

125,592

-91,5%

Net (loss) / income attributable to shareholders of Mechel OAO

(15,564)

15,181

-202,5%

Adjusted EBITDA (1) (2)

48,589

149,803

-67,6%

Adjusted EBITDA, margin (3)

2.81%

8.11%

-

(1)       See Attachment A.

(2)        Adjusted EBITDA is EBITDA adjusted for effects of forex gain/(loss), net result on the disposal of non-current assets, amounts attributable to non-controlling interests and interest income.

(3)       Adjusted EBITDA margin is calculated as a percentage of consolidated revenues of the segment, including intersegment sales.

 


US$ thousand

1Q 2012

4Q 2011

Change Q-on-Q

Revenue from external customers

1,649,133

1,541,256

7.0%

Intersegment sales

78,989

76,120

3.8%

Operating income / (loss)

10,666

(86,173)

112.4%

Net loss attributable to shareholders of Mechel OAO

(15,564)

(194,389)

92.0%

Adjusted EBITDA (1) (2)

48,589

(49,806)

197.6%

Adjusted EBITDA, margin (3)

2.81%

-3.08%

-

(1)       See Attachment A.

(2)        Adjusted EBITDA is EBITDA adjusted for effects of forex gain/(loss), net result on the disposal of non-current assets, amounts attributable to non-controlling interests and interest income.

(3)       Adjusted EBITDA margin is calculated as a percentage of consolidated revenues of the segment, including intersegment sales.

 

Steel Segment Output and Sales For The 1Q 2012

 

Production:


Product name

1Q 2012,

thousand tonnes

1Q 2011,
thousand tonnes

1Q 2012 vs.
1Q 2011, %

Pig iron

1,023

1,013

1%

Steel

1,655

1,588

4%

 

Product Sales:


Product name

1Q 2012,

thousand tonnes

1Q 2011,
thousand tonnes

1Q 2012 vs.
1Q 2011, %

Flat products

214

189

14%

Including those produced by third parties

141

125

13%

Long products

937

837

12%

Including those produced by third parties

196

168

16%

Billets

540

681

-21%

Including those produced by third parties

268

480

-44%

Hardware and welded mesh

213

207

3%

Including those produced by third parties

11

9

15%

Forgings

18

15

21%

Stampings

28

27

5%

 

Mechel’s steel segment’s revenue from external customers in 1Q 2012 amounted to $1.6 billion, or 56% of the consolidated net revenue, a decrease of 6.1% over the net segment’s revenue from external customers of $1.8 billion, or 60% of consolidated net revenue, in 1Q 2011.

 

In 1Q 2012, the steel segment’s operating income decreased by 91.5% and totaled $10.7 million, or 0.6% of total segment’s revenue, versus the operating income of $125.6 million, or 6.7% of total segment’s revenue, in 1Q 2011. The adjusted EBITDA in the steel segment in 1Q 2012 decreased by 67.6% and amounted to $48.6 million, compared to the adjusted EBITDA of $149.8 million in 1Q 2011. The adjusted EBITDA margin of the steel segment was 2.81% in 1Q 2012, versus the adjusted EBITDA margin of 8.11% in 1Q 2011. Depreciation and amortization in steel segment rose by 50.2% from $29.1 million in 1Q 2011 to $43.7 million in 1Q 2012.

 

Mechel-Steel Management Company OOO’s Chief Executive Officer Andrey Deineko commented on the steel segment’s results: “In the first quarter of 2012, the division showed a marked improvement of its results compared to the previous reporting period. Despite a seasonal low in demand for steel products, we managed to increase sales, significantly reducing stock at our Mechel Service Global sales network. In the first quarter, alone stock went down by over 200,000 tonnes, yielding additional funds to the working capital. At the same time, due to some decrease in prices on incoming raw materials, we retained control over the cost of the products manufactured by our key production assets, in some cases managing to decrease them by approximately10%. As a result we not only increased revenue, but achieved operating income and a positive EBITDA.

“Moreover, we must note improvements in the structure of the segment’s sales, compared to last year’s first quarter. The finished products’ share showed a marked growth as sales of semi-finished products shrank, which is due to the launch of processing facilities and increase of their load. Commissioning of the universal rolling mill at Chelyabinsk Metallurgical Plant, whose construction will be completed this year, will give additional support to the division’s results.”

 

Ferroalloys Segment Results For The 1Q 2012

 


US$ thousand

1Q 2012

1Q 2011

Change

Q-on-Q

Revenue from external customers

124,730

124,134

0.5%

Intersegment sales

27,814

52,665

-47.2%

Operating (loss) / income

(33,770)

11,859

-384.8%

Net loss attributable to shareholders of Mechel OAO

(56,040)

(2,247)

-2,394.0%

Adjusted EBITDA (1) (2)

(7,498)

35,106

-121.4%

Adjusted EBITDA, margin (3)

-4.92%

19.86%

-

(1)       See Attachment A.

(2)       Adjusted EBITDA is EBITDA adjusted for effects of forex gain/(loss), net result on the disposal of non-current assets, amounts attributable to non-controlling interests and interest income.

(3)       Adjusted EBITDA margin is calculated as a percentage of consolidated revenues of the segment, including intersegment sales.

 


US$ thousand

1Q 2012

4Q 2011

Change

Q-on-Q

Revenue from external customers

124,730

115,888

7.6%

Intersegment sales

27,814

15,997

73.9%

Operating loss

(33,770)

(35,929)

6.0%

Net loss attributable to shareholders of Mechel OAO

(56,040)

(39,141)

-43.2%

Adjusted EBITDA (1) (2)

(7,498)

(11,223)

33.2%

Adjusted EBITDA, margin (3)

-4.92%

-8.51%

-

(1)       See Attachment A.

(2)        Adjusted EBITDA is EBITDA adjusted for effects of forex gain/(loss), net result on the disposal of non-current assets, amounts attributable to non-controlling interests and interest income.

(3)       Adjusted EBITDA margin is calculated as a percentage of consolidated revenues of the segment, including intersegment sales.

 

Product Sales:


Product name

1Q 2012,

thousand tonnes

1Q 2011,

thousand tonnes

1Q 2012 vs. 1Q 2011, %

Nickel

4.2

3.6

19%

Including nickel supplied to Mechel enterprises

0.6

1.2

-49%

Ferrosilicon

18

23.9

-25%

Including ferrosilicon supplied to Mechel enterprises

7.2

6.9

5%

Chrome

17.2

11.3

52%

Including chrome supplied to Mechel enterprises

2.5

3.3

-26%

 

Ferroalloys segment’s revenue from external customers in 1Q2012 amounted to $124.7 million, or 4% of the consolidated net revenue, an increase of 0.5% compared with the segment’s revenue from external customers of $124.1 million or 4% of the consolidated net revenue, in 1Q2011.

 

In 1Q2012, the operating loss in the ferroalloys segment totaled $33.8 million, or -22.1% of total segment’s revenue, as compared to operating income of $11.9 million, or 6.7% of total segment’s revenue, in 1Q2011. The adjusted EBITDA in the ferroalloys segment in 1Q2012 decreased by 121.4% and amounted to negative $7.5 million, compared to segment’s adjusted EBITDA of $35.1 million in 1Q2011. The adjusted EBITDA margin of the ferroalloys segment comprised -4.9% in 1Q2012 compared to the adjusted EBITDA margin of 19.9% in 1Q2011. Ferroalloys segment’s depreciation, depletion and amortization in 1Q2012 were $26.5 million, an increase of 18.3% over $22.4 million in 1Q2011.

 

Mechel-Energo OOO’s Chief Executive Officer Yuriy Yampolskiy noted: “In the first quarter of 2012 compared to the 4th quarter of 2011, the division continued its trend toward improvement of financial results. During the period of traditionally high capacity load and significant sales, the division increased its revenue and, having demonstrated a significant increase in operation income and EBITDA, showed net profit. Priority rates in the growth of electricity prices, decrease in fuel expense, and a lower share of semi-fixed costs per product unit together with growing production volumes had a positive impact on the division’s results.”

 

 

Power Segment Results for The 1Q 2012

 


US$ thousand

1Q 2012

1Q 2011

Change

Q-on-Q

Revenue from external customers

243,442

225,110

8.1%

Intersegment sales

136,162

143,462

-5.1%

Operating income

24,879

33,535

-25.8%

Net income attributable to shareholders of Mechel OAO

11,435

20,194

-43.4%

Adjusted EBITDA (1) (2)

27,510

35,437

-22.4%

Adjusted EBITDA, margin(3)

7.25%

9.61%

-

(1)       See Attachment A.

(2)        Adjusted EBITDA is EBITDA adjusted for effects of forex gain/(loss), net result on the disposal of non-current assets, amounts attributable to non-controlling interests and interest income.

(3)       Adjusted EBITDA margin is calculated as a percentage of consolidated revenues of the segment, including intersegment sales.

 


US$ thousand

1Q 2012

4Q 2011

Change

Q-on-Q

Revenue from external customers

243,442

210,579

15.6%

Intersegment sales

136,162

126,305

7.8%

Operating income

24,879

688

3,516.1%

Net income / (loss) attributable to shareholders of Mechel OAO

11,435

(5,907)

293.6%

Adjusted EBITDA (1) (2)

27,510

3,019

811.2%

Adjusted EBITDA, margin(3)

7.25%

0.90%

-

(1)       See Attachment A.

(2)        Adjusted EBITDA is EBITDA adjusted for effects of forex gain/(loss), net result on the disposal of non-current assets, amounts attributable to non-controlling interests and interest income.

(3)       Adjusted EBITDA margin is calculated as a percentage of consolidated revenues of the segment, including intersegment sales.

 

Power Segment Output and Sales For The 1Q 2012

 


Product name

1Q 2012

1Q 2011

1Q 2012 vs. 1Q 2011, %

Electric power generation (ths. kWh)

1,213,029

1,150,318

5%

Heat power generation (Gcal)

3,140,876

2,704,464

16%

 

Mechel’s power segment’s revenue from external customers in 1Q 2012 comprised $243.4 million, or 8% of consolidated net revenue, an increase of 8.1% compared with the segment’s revenue from external customers of $225.1 million or 8% of consolidated net revenue in 1Q2011.

 

The operating income in the power segment in 1Q2012 amounted to $24.9 million, or 6.6% of the total segment’s revenue in the same period, a decrease of 25.8% compared to the operating income of $33.5 million, or 9.1% of the total segment’s revenue, in 1Q2011. The adjusted EBITDA in the power segment in 1Q2012 went down by 22.4% totaling $27.5 million, compared to the adjusted EBITDA of $35.4 million in 1Q2011. The adjusted EBITDA margin for the power segment in 1Q2012 amounted to 7.3% compared to 9.6% in 1Q2011. Depreciation and amortization in power segment in 1Q2012 decreased by 28.1% comparing with the 1Q2011 from $5.7 million to $4.1 million.

 

Mechel-Energo OOO’s Chief Executive Officer Yuri Yampolsky noted: “The division’s results improved in the fourth quarter as expected, which was due to the heating season and an increase in capacity utilization. The segment had positive results in operational profit and EBITDA. Nevertheless, growing commercial costs, mostly due to rising electricity traffic tariffs, had a marked effect on the end result. In order to improve the situation, we have worked out and are implementing a series of steps aimed at cutting production costs as well as optimizing the capital expense program.”

 

Recent Highlights

·         In May 2012, Mechel announced that the Board of Directors held a meeting confirming recommendations to the annual general shareholders’ meeting regarding the payment of dividends.

·         In May 2012, Mechel reported about the visit of Russian Federation’s Industry and Trade Minister Denis Manturov to the construction site for Chelyabinsk Metallurgical Plant OAO’s universal rolling mill.

·         In June 2012, Mechel reported that Chairman of the Board of Directors Igor Zyuzin met with Minmetals Corporation’s President Zhou Zhongshu during Mr. Zyuzin’s trip as part of the Russian delegation in the framework of Russian Federation’s President Vladimir Putin’s official visit to People’s Republic of China. During the meeting, the sides discussed the issues of implementing the project for the construction of the universal rolling mill at Chelyabinsk Metallurgical Plant (CMP), where Minmetals, one of China’s largest state industrial corporations, is general contractor.

 

***

Financial Position

 

Capital expenditure on property, plant and equipment and acquisition of mineral licenses for the 1Q 2012 amounted to $276.2 million, of which $147.8 million was invested in the mining segment, $114.4 million was invested in the steel segment, $11.8 million was invested in the ferroalloy segment and $2.2 million was invested in the power segment.

 

As of March 31, 2012, total debt was at $9.6 billion. Cash and cash equivalents amounted to $439.7 million and net debt amounted to $9.2 billion (net debt is defined as total debt outstanding less cash and cash equivalents) at end of 1Q 2012.

 

The management of Mechel will host a conference call today at 10:00 a.m. New York time (3:00 p.m. London time, 6:00 p.m. Moscow time) to review Mechel’s financial results and comment on current operations. The call may be accessed via the Internet at http://www.mechel.com, under the Investor Relations section.

 

***

 

Mechel OAO

Vladislav Zlenko

Director of Investor Relations

Mechel OAO

Phone: 7-495-221-88-88

Fax: 7-495-221-88-00

vladislav.zlenko@mechel.com

 

***

 

Mechel is one of the leading Russian companies. Its business includes four segments: mining, steel, ferroalloy and power. Mechel unites producers of coal, iron ore concentrate, steel, rolled products, ferroalloys, hardware, heat and electric power. Mechel products are marketed domestically and internationally.

 

***

 

Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of Mechel, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not intend to update these statements. We refer you to the documents Mechel files from time to time with the U.S. Securities and Exchange Commission, including our Form 20-F. These documents contain and identify important factors, including those contained in the section captioned “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in our Form 20-F, that could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, the achievement of anticipated levels of profitability, growth, cost and synergy of our recent acquisitions, the impact of competitive pricing, the ability to obtain necessary regulatory approvals and licenses, the impact of developments in the Russian economic, political and legal environment, volatility in stock markets or in the price of our shares or ADRs, financial risk management and the impact of general business and global economic conditions.


Attachments to the 1Q 2012 Earnings Press Release

 

Attachment A

Non-GAAP financial measures. This press release includes financial information prepared in accordance with accounting principles generally accepted in the United States of America, or US GAAP, as well as other financial measures referred to as non-GAAP. The non-GAAP financial measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with US GAAP.

Adjusted EBITDA represents earnings before Depreciation, depletion and amortization, Foreign exchange gain/(loss), Gain/(loss) from remeasurement of contingent liabilities at fair value, Interest expense, Interest income, Net result on the disposal of non-current assets, Amount attributable to non-controlling interests and Income taxes. Adjusted EBITDA margin is defined as adjusted EBITDA as a percentage of our net revenues. Our adjusted EBITDA may not be similar to EBITDA measures of other companies. Adjusted EBITDA is not a measurement under accounting principles generally accepted in the United States and should be considered in addition to, but not as a substitute for, the information contained in our consolidated statement of operations. We believe that our adjusted EBITDA provides useful information to investors because it is an indicator of the strength and performance of our ongoing business operations, including our ability to fund discretionary spending such as capital expenditures, acquisitions and other investments and our ability to incur and service debt. While interest, depreciation and amortization are considered operating costs under generally accepted accounting principles, these expenses primarily represent the non-cash current period allocation of costs associated with long-lived assets acquired or constructed in prior periods. Our adjusted EBITDA calculation is commonly used as one of the bases for investors, analysts and credit rating agencies to evaluate and compare the periodic and future operating performance and value of companies within the metals and mining industry. Adjusted EBITDA can be reconciled to our consolidated statements of operations as follows:

Consolidated results


US$ thousand

1Q 2012

1Q 2011

Net income

218,019

309,116

Add:

Depreciation, depletion and amortization

Forex loss / (gain)

Loss from remeasurement of contingent liabilities at fair value

Interest expense

Interest income

Net result on the disposal of non-current assets

Amount attributable to non-controlling interests

Income taxes

 

155,857

(170,915)

460

 

161,061

(18,772)

(516)

 

15,016

103,192

 

140,209

(152,969)

421

 

140,320

(4,306)

(6,671)

 

29,432

111,299

Adjusted EBITDA

463,402

566,852

 


US$ thousand

1Q 2012

4Q 2011

Net income

218,019

201,155

Add:

Depreciation, depletion and amortization

Forex loss / (gain)

Loss from remeasurement of contingent liabilities at fair value

Interest expense

Interest income

Net result on the disposal of non-current assets

Amount attributable to non-controlling interests

Income taxes

 

155,857

(170,915)

460

 

 

161,061

(18,772)

(516)

 

15,016

103,192

 

139,533

(14,441)

457

 

 

113,363

(6,689)

11,301

 

22,516

69,147

Adjusted EBITDA

463,402

536,342

 

Adjusted EBITDA margin can be reconciled as a percentage to our Revenues as follows:

 


US$ thousand

1Q 2012

1Q 2011

Revenue, net

2,950,047

2,934,491

Adjusted EBITDA

463,402

566,852

Adjusted EBITDA, margin

15.71%

19.32%

 


US$ thousand

1Q 2012

4Q 2011

Revenue, net

2,950,047

2,929,159

Adjusted EBITDA

463,402

536,342

Adjusted EBITDA, margin

15.71%

18.31%

 

 

Mining Segment

 


US$ thousand

1Q 2012

1Q 2011

Net income

241,504

290,675

Add:

Depreciation, depletion and amortization

Forex loss / (gain)

Loss from remeasurement of contingent liabilities at fair value

Interest expense

Interest income

Net result on the disposal of non-current assets

Amount attributable to non-controlling interests

Income taxes

 

81,620

(102,410)

460

 

68,533

(23,575)

419

 

17,916

73,649

 

82,984

(155,495)

421

 

86,190

(45,984)

(2,323)

 

18,434

86,291

Adjusted EBITDA

358,116

361,193

 


US$ thousand

1Q 2012

4Q 2011

Net income

241,504

439,066

Add:

Depreciation, depletion and amortization

Forex loss / (gain)

Loss from remeasurement of contingent liabilities at fair value

Interest expense

Interest income

Net result on the disposal of non-current assets

Amount attributable to non-controlling interests

Income taxes

 

81,620

(102,410)

460

 

 

68,533

(23,575)

419

17,916

73,649

 

84,077

(38,597)

457

 

 

51,167

(20,988)

8,892

22,983

45,768

Adjusted EBITDA

358,116

592,825

 

Adjusted EBITDA margin can be reconciled as a percentage to our Revenues as follows:

 


US$ thousand

1Q 2012

1Q 2011

Revenue (including intersegment sales)

1,158,340

1,088,384

Adjusted EBITDA

358,116

361,193

Adjusted EBITDA, margin

30.92%

33.19%

 


US$ thousand

1Q 2012

4Q 2011

Revenue (including intersegment sales)

1,158,340

1,325,179

Adjusted EBITDA

358,116

592,825

Adjusted EBITDA, margin

30.92%

44.74%

 

 

Steel Segment

 


US$ thousand

1Q 2012

1Q 2011

Net (loss) / income

(15,564)

15,181

Add:

Depreciation, depletion and amortization

Forex (gain) / loss

Interest expense

Interest income

Net result on the disposal of non-current assets

Amount attributable to non-controlling interests

Income taxes

 

43,651

(91,155)

86,864

(3,023)

457

 

(3,398)

30,757

 

29,142

14,204

74,427

(6,329)

(412)

 

3,928

19,662

Adjusted EBITDA

48,589

149,803

 


US$ thousand

1Q 2012

4Q 2011

Net loss

(15,564)

(194,389)

Add:

Depreciation, depletion and amortization

Forex (gain) / loss

Interest expense

Interest income

Net result on the disposal of non-current assets

Amount attributable to non-controlling interests

Income taxes

 

43,651

(91,155)

86,864

(3,023)

457

 

(3,398)

30,757

 

31,149

21,591

73,410

(2,569)

1,463

 

(560)

20,099

Adjusted EBITDA

48,589

(49,806)

 

Adjusted EBITDA margin can be reconciled as a percentage to our Revenues as follows:

 


US$ thousand

1Q 2012

1Q 2011

Revenue (including intersegment sales)

1,728,122

1,846,073

Adjusted EBITDA

48,589

149,803

Adjusted EBITDA, margin

2.81%

8.11%

 


US$ thousand

1Q 2012

4Q 2011

Revenue (including intersegment sales)

1,728,122

1,617,376

Adjusted EBITDA

48,589

(49,806)

Adjusted EBITDA, margin

2.81%

-3.08%

 

 

Ferroalloys Segment

 


US$ thousand

1Q 2012

1Q 2011

Net loss

(56,040)

(2,247)

Add:

Depreciation, depletion and amortization

Forex (gain) / loss

Interest expense

Interest income

Net result on the disposal of non-current assets

Amount attributable to non-controlling interests

Income taxes

 

26,480

22,663

8,093

(212)

102

 

(1,430)

(7,154)

 

22,376

(11,882)

23,230

(495)

467

 

2,911

746

Adjusted EBITDA

(7,498)

35,106

 


US$ thousand

1Q 2012

4Q 2011

Net loss

(56,040)

(39,141)

Add:

Depreciation, depletion and amortization

Forex loss

Interest expense

Interest income

Net result on the disposal of non-current assets

Amount attributable to non-controlling interests

Income taxes

 

26,480

22,663

8,093

(212)

102

 

(1,430)

(7,154)

 

23,497

2,586

1,868

(375)

964

 

(1,984)

1,362

Adjusted EBITDA

(7,498)

(11,223)

 

Adjusted EBITDA margin can be reconciled as a percentage to our Revenues as follows:

 


US$ thousand

1Q 2012

1Q 2011

Revenue (including intersegment sales)

152,544

176,799

Adjusted EBITDA

(7,498)

35,106

Adjusted EBITDA, margin

-4.92%

19.86%

 


US$ thousand

1Q 2012

4Q 2011

Revenue (including intersegment sales)

152,544

131,885

Adjusted EBITDA

(7,498)

(11,223)

Adjusted EBITDA, margin

-4.92%

-8.51%

 

 

Power Segment

 


US$ thousand

1Q 2012

1Q 2011

Net income

11,435

20,194

Add:

Depreciation, depletion and amortization

Forex (gain) / loss

Interest expense

Interest income

Net result on the disposal of non-current assets

Amount attributable to non-controlling interests

Income taxes

 

4,107

(13)

5,624

(15)

(1,495)

 

1,928

5,939

 

5,707

204

5,180

(205)

(4,403)

 

4,159

4,601

Adjusted EBITDA

27,510

35,437

 


US$ thousand

1Q 2012

4Q 2011

Net income / (loss)

11,435

(5,907)

Add:

Depreciation, depletion and amortization

Forex gain

Interest expense

Interest income

Net result on the disposal of non-current assets

Amount attributable to non-controlling interests

Income taxes

 

4,107

(13)

5,624

(15)

(1,495)

 

1,928

5,939

 

811

(20)

4,158

2

(16)

 

2,074

1,917

Adjusted EBITDA

27,510

3,019

 

Adjusted EBITDA margin can be reconciled as a percentage to our Revenues as follows:

 


US$ thousand

1Q 2012

1Q 2011

Revenue (including intersegment sales)

379,604

368,572

Adjusted EBITDA

27,510

35,437

Adjusted EBITDA, margin

7.25%

9.61%

 


US$ thousand

1Q 2012

4Q 2011

Revenue (including intersegment sales)

379,604

336,884

Adjusted EBITDA

27,510

3,019

Adjusted EBITDA, margin

7.25%

0.90%

 

 


Print it
Consolidated Balance Sheets        
(in thousands of U.S. dollars, except share amounts)        
    March 31, 2012   December 31, 2011
    (unaudited)    
ASSETS        
Cash and cash equivalents  $ 439,677 $ 643,379
Accounts receivable, net of allowance for doubtful accounts
of $54,062 as of March 31, 2012 and $50,966 as of December 31, 2011
  943,319   824,560
Due from related parties   1,395,579   1,315,288
Inventories   2,552,785   2,599,097
Deferred income taxes   44,660   36,056
Prepayments and other current assets   600,825   654,285
Total current assets   5,976,845   6,072,665
         
Long-term investments in related parties   9,584   8,150
Other long-term investments   15,811   13,997
Property, plant and equipment, net   7,868,715   7,076,303
Mineral licenses, net   4,845,111   4,733,676
Other non-current assets   227,637   222,442
Deferred income taxes   43,257   27,817
Goodwill   1,249,445   1,151,187
Total assets $ 20,236,405 $ 19,306,237
         
LIABILITIES AND EQUITY        
Short-term borrowings and current portion of long-term debt  $ 2,486,197 $ 2,651,357
Accounts payable and accrued expenses:        
Trade payable to vendors of goods and services   1,055,285   976,187
Advances received   213,972   206,156
Accrued expenses and other current liabilities   291,607   281,762
Taxes and social charges payable   313,032   277,284
Unrecognized income tax benefits   2,190   2,190
Due to related parties   159,875   179,672
Asset retirement obligation, current portion   4,553   3,703
Deferred income taxes   34,613   41,822
Pension obligations, current portion   24,120   22,172
Dividends payable   4   4
Finance lease liabilities, current portion   110,546   96,907
Total current liabilities $ 4,695,994 $ 4,739,216