MOSCOW (Reuters) - NLMK (NLMK.MM), one of Russia’s largest steelmakers, said on Monday revenue would be flat in the third quarter, partly due to falling prices for steel products, as it reported a sharp drop in second quarter profits.
NLMK, controlled by billionaire Vladimir Lisin, said net profit stood at $34 million for the period, undershooting the $94 million forecast by analysts in a Reuters poll and sharply down from the $278 million in the same period a year ago.
Alongside steelmakers around the world, NLMK - which makes steel for use in areas such as construction, industry and shipbuilding - has seen a change in its fortunes since a 2008 financial crisis sent steel prices tumbling.
“In (the third quarter), conditions in the steel product market remain challenging,” NLMK chief financial officer Grigory Fedorishin said in a statement. “Prices for steel products in a number of regions continued to fall, and the pricing environment remains volatile.”
NLMK said crude steel output would rise 4 percent to 3.9 million tons in the third quarter, versus the second quarter. It forecast little change in revenue from the $2.8 billion it posted in the second quarter.
Shares of NLMK, which have lost around 64 percent in value since their peak in early 2011, were trading up 1.5 percent at 0745 GMT, outperforming the wider Moscow index .
Reporting by Alessandra Prentice; editing by Megan Davies