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Russia's Mechel underperforms with Q1 net loss of $321 mln
June 18, 2013 / 8:17 AM / 4 years ago

Russia's Mechel underperforms with Q1 net loss of $321 mln

MOSCOW, June 18 (Reuters) - Russian miner Mechel posted on Tuesday a first-quarter net loss of $321 million, compared with profit of $218 million in the same quarter last year partly due to the sale of loss-making Romanian assets in February.

Its net loss adjusted for the effect of assets impairment, discontinued operations and other lines would come at $233 million, Mechel added. Analysts had expected Mechel to report a net loss of $111 million, according to a Reuters poll.

The coal miner and steelmaker said first-quarter revenue fell 16 percent, year-on-year, to $2.5 billion, while earnings before interest, taxation, depreciation and amortisation (EBITDA) were down 57 percent at $210 million, in line with expectations.

“We disposed of Romanian steelmaking assets, which did not fit into the company’s reviewed strategy and had a negative impact on our financial results,” Mechel chief executive Evgeny Mikhel said in a statement, adding that the sale should improve the firm’s profit in the medium term.

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