(Adds details, outlook)
MOSCOW Aug 22 Russian steelmaker MMK
reported net profit of $159 million for the second quarter on
Friday, outperforming analysts' expectations for profit of $108
The company was able to swing back to profit in the second
quarter thanks to a foreign exchange gain of $86 million,
increased output and higher steel prices, a company spokesman
A year earlier MMK, controlled by Russian businessman Viktor
Rashnikov, posted a net loss of $155 million. In the first
quarter the company had a $79 million net loss.
Its earnings before interest, taxation, depreciation and
amortisation (EBITDA) increased to $399 million for the second
quarter compared to $291 million a year earlier and analysts'
forecast for $385 million.
The company said its core earnings were improved thanks to
an increase in sales, an improved production structure, a
recovery in steel prices in Russia and a decline in global iron
MMK's revenue increased 2 percent year-on-year to $2.2
billion due to a rise in steel prices on the domestic market and
higher sales volumes.
In July, the company said its second-quarter crude steel
production rose 6.3 percent quarter-on-quarter to 3.4 million
"MMK Group's financial results for Q3 2014 will be affected
by a marginal reduction of output volumes at the main production
site and by a decrease in global iron ore indices", the company
said, referring to two factors that could potentially offset
(Reporting by Andrey Kuzmin; Editing by Alexander Winning)