OREANDA-NEWS. On August 06, 2007 OJSC Novolipetsk Steel (NLMK) (LSE: NLMK) announced Q2 2007 Russian Accounting Standards (RAS) financial results for its major companies, reported the press-centre of NLMK.

Highlights
NLMK’s financial results improved in Q2 2007 compared to Q1 2007 due to strong pricing environment.

Average steel prices in Q2 2007 were higher than the level of Q1 2007 and Q2 2006. This was the primary factor contributing to the increase of sales revenue during the reporting period. The profit increase in Q2 2007 compared to the previous quarter is also attributable to price increases for iron ore raw materials, coking coal concentrate and energy, which were fixed until the end of the year, as well as the strong pricing environment.

The gross profit and net income in Q2 2007 increased by 15,7% and 11,8% respectively in comparison with Q1 2007.

The substantial price increase of basic raw materials in Q2 2007 compared to Q2 2006 resulted in growing costs of goods sold at the main production site in Lipetsk and corresponding slight lowering of financial results compared to Q2 2006. The growth of cost of goods sold was primarily caused by the price increase of iron ore raw materials which are mostly supplied by Stoilensky GOK.

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