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MOSCOW May 20 NLMK, one of Russia's
largest steelmakers, expects higher income in the second quarter
of 2014, the company said on Tuesday, after reporting a
forecast-beating first-quarter net profit of $174 million.
"Demand in key markets remained weak at the beginning of
2014 on the back of the seasonal slowdown in consumer activity,"
Grigory Fedorishin, NLMK chief financial officer (CFO), said in
a statement. "By the end of the first quarter, market conditions
The firm's second-quarter steel production is expected to
remain flat, quarter-on-quarter. However, seasonal improvements
in demand and costs optimisation mean the company expects
further growth in its profitability and income, it added.
NLMK, controlled by businessman Vladimir Lisin, reported
first-quarter net income of $174 million after a $21 million
loss in a previous quarter thanks to a higher profit from
operations. The income beat the forecast in Reuters poll of
analysts, who had expected it at $103 million.
NLMK said its revenue was at $2.6 billion, up 5 percent
Its shares were up 0.3 percent in early trade in Moscow on
Tuesday, compared with a 0.5 percent rise in the Metals and
(Reporting by Polina Devitt; Editing by Mark Potter)