OREANDA-NEWS. May 17, 2012. NLMK, the LSE-listed leading steel producer, today announces its consolidated US GAAP results for Q1 2012.


 In Q1, average steel product sales prices softened 5% q-o-q driven by the negative market sentiment in the previous quarter. As a result, the Group’s revenue increased marginally to USD 3.1 billion (+1.3% q-o-q), driven by the 9% growth in sales (to 3.9 mt).

 Despite the seasonal slowdown in demand in Q1, EBITDA increased 17% to USD 432 million as a result of reduced costs and improved sales efficiency. The EBITDA margin grew 2 p.p. to 14%. Our long products and foreign rolling assets posted significant performance improvements.
 The Company’s net profit increased by 13% q-o-q and totaled USD 173 million. Net debt was USD 3.5 billion (+5% q-o-q).
 Higher profitability and working capital optimization resulted in a higher cash flow from operations, which was up 57% q-o-q and totaled USD 502 million.

 OUTLOOK
 In Q2, we expect revenue growth of 10% based on continued increase in sales. We expect an EBITDA margin of approximately 17%-19%.

 Conference call details
 NLMK is pleased to invite the investment community to a conference call with the management of NLMK:
 Thursday, May 17, 2012
 09:00 (New York)
 14:00 (London)
 17:00 (Moscow)

 To join the conference call, please, register on-line:
https://eventreg1.conferencing.com/webportal3/reg.html?Acc=682729&Conf=183714

 or dial

 International Call-in Number: +44 (0)20 7162 0025
 US Call-in Number: +1 334 323 6201
 Conference ID: 917041

 *We recommend that participants register on-line to avoid waiting in a queue or to start dialing in 5-10 minutes prior to ensure a timely start to the conference call.
 It is recommended that participants download presentation in advance on NLMK’s web-site www.nlmk.com.

 Contacts:
 NLMK
 Sergey Takhiev
 Investor Relations
 +7 495 915 1575
 st@nlmk.com