This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Mechel Reports The 9M 2012 Financial Results

In 3Q 2012, Mechel's consolidated net income attributable to shareholders of Mechel OAO comprised $54.9 million compared to the net loss of $823.0 million in 2Q 2012. Excluding the effects of impairment of long-lived assets and goodwill and provision for amounts due from related parties (net of deferred taxes related to non controlling interests) the adjusted net profit amounts to $132.1 million in 3Q 2012.

The consolidated adjusted EBITDA in 3Q 2012 decreased by 2.7% to $374.8 million, compared to $385.4 million in 2Q 2012. Depreciation, depletion and amortization in 3Q 2012 for the Company were $140.8 million, a decrease of 10.4% compared to $157.2 million in 2Q 2012.

Mining Segment Results For The 9M 2012

US$ thousand 9M 2012 (1) 9M 2011 (1) Change Y-on-Y
Revenue from external customers 2,591,167 3,078,513 -15.8%
Intersegment sales 604,606 788,336 -23.3%
Operating income 668,394 1,193,968 -44.0%
Net income attributable to shareholders of Mechel OAO 428,245 630,826 -32.1%
Adjusted net income (1) (2) 450,925 630,826 -28.5%
Adjusted EBITDA (1) (3) 965,178 1,431,003 -32.6%
Adjusted EBITDA, margin (4) 30.20% 37.01% --
(1)   See Attachment A.
(2)   Adjusted net income is net income adjusted for effects of impairment of long-lived assets and goodwill and provision for amounts due from related parties (including income tax and amounts attributable to noncontrolling interests effects) 
(3)    Adjusted EBITDA is EBITDA adjusted for effects of remeasurement of contingent liabilities at fair value, forex gain/(loss), net result on the disposal of non-current assets, impairment of long-lived assets and goodwill, provision for the loan given to related parties, amounts attributable to noncontrolling interests and interest income 
(4)   Adjusted EBITDA margin is calculated as a percentage of consolidated revenues of the segment, including intersegment sales.
US$ thousand 3Q 2012 (1) 2Q 2012 (1) Change Q-on-Q
Revenue from external customers 777,246 881,180 -11.8%
Intersegment sales 171,922 207,085 -17.0%
Operating income 200,256 192,570 4.0%
Net income / (loss) attributable to shareholders of Mechel OAO 216,765 (30,024) --
Adjusted net income / (loss) (1) (2) 218,739 (9,318) --
Adjusted EBITDA (1) (3) 305,157 301,906 1.1%
Adjusted EBITDA, margin (4) 32.15% 27.74% --
(1)   See Attachment A.
(2)   Adjusted net income is net income adjusted for effects of impairment of long-lived assets and goodwill and provision for amounts due from related parties (including income tax and amounts attributable to noncontrolling interests effects) 
(3)   Adjusted EBITDA is EBITDA adjusted for effects of remeasurement of contingent liabilities at fair value, forex gain/(loss), net result on the disposal of non-current assets, impairment of long-lived assets and goodwill, provision for the loan given to related parties, amounts attributable to noncontrolling interests and interest income.
(4)   Adjusted EBITDA margin is calculated as a percentage of consolidated revenues of the segment, including intersegment sales

Mining Segment Output and Sales For The 9M 2012

Production :

  9M 2012, 9M 2011, 9M 2012 vs.
Product name thousand tonnes thousand tonnes 9M 2011, %
Coal (run-of-mine) 20,794 19,813 5%

Product Sales:

  9M 2012, 9M 2011, 9M 2012 vs.
Product name thousand tonnes thousand tonnes 9M 2011, %
Coking coal concentrate 9,029 9,305 -3%
Including coking coal concentrate supplied to Mechel enterprises 1,950 2,271 -14%
PCI 1,703 1,202 42%
Anthracites 1,937 1,693 14%
Including anthracites supplied to Mechel enterprises 246 235 5%
Steam coal 4,490 5,036 -11%
Including steam coal supplied to Mechel enterprises 1,120 1,139 -2%
Iron ore concentrate 3,219 3,294 -2%
Including iron ore concentrate supplied to Mechel enterprises 268 1,327 -80%
Coke 2,707 2,563 6%
Including coke supplied to Mechel enterprises 1,903 1,704 12%

The mining segment's revenue from external customers in 3Q 2012 totaled $777.2 million, or 29% of consolidated net revenue, a decrease of 11.8% over the segment's revenue from external customers of $881.2 million, or 29% of consolidated net revenue in 2Q 2012.

2 of 10

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,891.31 -94.30 -0.56%
S&P 500 1,963.33 -9.50 -0.48%
NASDAQ 4,392.9380 -26.0960 -0.59%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs