Company Profile For OAO "Mechel"

Mechel OAO (Mechel) is a Russia-based vertically integrated mining, steel, ferroalloys, and power company. The Company also provide coal washing services, both to the coal-mining subsidiaries and to third parties. The steel business comprises the production and sale of semi-finished steel products, carbon and specialty long products, carbon and stainless flat products, and value-added downstream metal products, including hardware, stampings, and forgings. The Company is also engaged in the power business. On April 8, 2008, Mechel acquired Ductil Steel S.A. (Ductil Steel). On April 17, 2008, the Company acquired Oriel Resources plc (Oriel Resources). In February 2009, the Company acquired 100% interest in Skyblock Limited, a manufacturer of steel products. In February 2009, it acquired 100% interest in Bluestone Сoal. In March 2009, the Company established Mechel Service Global B.V.

BRIEF: For the six months ended 30 June 2009, Mechel OAO's revenue decreased 54% to $2.46B. Net loss from continuing operations and before extraordinary items totaled $471.4M, vs. a profit of $1.1B. Revenue reflects decreased demand for the Company's mining, steel and ferroalloy services business segments. Net loss reflects decreased both gross and operating profit margins, mainly due to lower interest income and higher interest expenses.