NLMK posts higher 2006 net profit

JSC Novolipetsk Steel (“NLMK”, “the Group”) today announced its preliminary consolidated US GAAP results for the 2006 year.

Revenue stepped up 38 percent to around $6.046 bln. The company's EBITDA grew 26 percent to $2.631 bln and EBITDA margin amounted to 44 percent (against 50 percent in 2005).

The net profit of Novolipetsk Steel (NLMK) surged 50 percent to $2.066 bln in 2006 compared to a year earlier.

Commenting on the 2006 results, Dr. Vladimir Lisin, NLMK’s Chairman of the Board, said: “In 2006, NLMK once again demonstrated outstanding financial performance. The Company continues to be among the world’s most profitable steel producers. NLMK’s investment in modernization and the expansion of its production facilities have resulted in growth in production volumes and the further strengthening of NLMK’s key competitive advantage as one of the lowest cost steel producers in the world. NLMK’s targeted efforts at extending its vertical integration have enabled the Company to raise its level of raw material self-sufficiency and increase its production of high value-added products. These efforts have manifested themselves in improving financial results and a growing market capitalization, sound evidence of the successful implementation of the company’s growth strategy.

In the future, we will continue to implement a strategy focused on strengthening market leadership in our core markets and raising efficiency of all key segments of the NLMK Group. This will provide a strong platform for further growth and will maximize returns for Company’s shareholders”.