OREANDA-NEWS. Mechel OAO (NYSE: MTL), a leading Russian mining and steel group, announced financial results for the 1Q 2013.

Evgeny Mikhel, Mechel OAO's Chief Executive Officer, commented on the 1Q 2013 financial results:

“The first quarter was marked by an important step forward toward optimizing Mechel's asset structure. We disposed of Romanian steelmaking assets, which did not fit into the company's reviewed strategy and had a negative impact on our financial results. We expect that the sale of loss-making steel enterprises will have a positive influence on the economics of the steel division and the Group as a whole in the medium-term already.”

“As a whole, in the reported period the company demonstrated a marked improvement of its financial results as compared to the previous period. We made operational profit and saw a noticeable increase in EBITDA. This became possible due to a pick-up in the steel raw materials market seen in the beginning of this year, despite a seasonal correction in the steel products markets.

Unfavorable price trends, observed since early this year, make undoubted pressure on the market players' financial results. At the same time, we are certain that optimizing the asset structure, debt portfolio and control over expenditure and investment will enable Mechel to successfully go through the market slowdown.”