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
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Mechel Reports The 9M 2012 Financial Results

"The third quarter was also marked by another event in the development of Elga Coal Complex — we completed construction of a washing plant and made the technological launch of a full production cycle. Currently finishing and insulating works are being conducted at the site, and when completed, the plant will be able to work all year round reaching 3 million tonnes capacity. Washing facilities next year will enable us to increase coal production at Elga and increase Mechel Mining's supplies of coking coal concentrate. In order to ensure a long-term off-take for Elga's steam coal, in September we signed a long-term cooperation agreement with RAO Energy Systems of East OAO, which provides for a gradual increase in coal supplies up to a total of 60 million tonnes over 15 years."

Steel Segment Results For The 9M 2012

US$ thousand 9M 2012 (1) 9M 2011 (1) Change Y-on-Y
Revenue from external customers 5,246,358 5,613,161 -6.5%
Intersegment sales 195,156 234,296 -16.7%
Operating (loss) / income  (503,231) 277,921 --
Net loss attributable to shareholders of Mechel OAO (751,830) (38,217) 1867.3%
Adjusted net loss (1) (2) (188,192) (38,217) 392.4%
Adjusted EBITDA (1) (3) 214,587 368,681 -41.8%
Adjusted EBITDA, margin (4) 3.94% 6.30% --
(1)   See Attachment A.
(2)   Adjusted net loss is net loss 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 1,699,564 1,897,661 -10.4%
Intersegment sales 49,629 66,538 -25.4%
Operating loss (42,868) (471,029) -90.9%
Net loss attributable to shareholders of Mechel OAO (110,989) (625,277) -82.2%
Adjusted net loss (1) (2) (35,740) (136,888) -73.9%
Adjusted EBITDA (1) (3) 74,746 91,251 -18.1%
Adjusted EBITDA, margin (4) 4.27% 4.65% --
(1)   See Attachment A.
(2)   Adjusted net loss is net loss 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.

Steel Segment Output and Sales For The 9M 2012

Production :

  9M 2012, 9M 2011, 9M 2012 vs.
Product name thousand tonnes thousand tonnes 9M 2011, %
Pig iron 3,107 2,672 16%
Steel 5,101 4,501 13%

Product Sales:

  9M 2012, 9M 2011, 9M 2012 vs.
Product name thousand tonnes thousand tonnes 9M 2011, %
Flat products 534 512 4%
Including those produced by third parties 303 308 -2%
Long products 3,107 2,925 6%
Including those produced by third parties 666 614 9%
Billets 1,950 1,723 13%
Including those produced by third parties 751 1,208 -38%
Hardware and welded mesh 737 722 2%
Including those produced by third parties 39 39 0%
Forgings 39 45 -13%
Stampings 83 88 -6%

Mechel's steel segment's revenue from external customers in 3Q 2012 amounted to $1.7 billion, or 63% of the consolidated net revenue, a decrease of 10.4% over the segment's revenue from external customers of $1.9 billion, or 61% of consolidated revenue, in 2Q 2012.

Stock quotes in this article: MTL 

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.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

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