News

14 July 2016

Q2 and 6М 2016 NLMK Group Trading update

Q2 2016 NLMK Group steel output reached a record at 4.2 million tonnes, with capacity utilization growing to 100%. NLMK Long Products Division and NLMK Group’s foreign companies* posted double-digit growth in output.

Q2 2016 highlights:

  • Crude steel output increased by 6% qoq (+4% yoy) to 4.2 m t driven by higher steel production across all NLMK Group companies.
  • Steelmaking capacity utilization rates at NLMK Group increased by 6 p.p. to 100%.
  • Sales to external customers were down by 5% qoq (-2% yoy) to 3.9 m t due to a growth in intragroup sales.
  • Sales of finished steel remained flat (qoq) at 2.6 m t (-1% yoy); the share of finished steel in total sales increased to 65% (+3 p.p. qoq and +1 p.p. yoy).
  • Sales of NLMK Group foreign companies grew by 12% supported by a growth in demand in the European and US markets.
  • Market shares in NLMK Group total sales:
    • share of product sales by Group companies in countries where products are manufactured (hereinafter referred to as ‘local markets’) totaled 51% (-1 p.p. qoq and -2 p.p. yoy);
    • share of sales to third parties (except NBH) in markets external to countries where products are manufactured (hereinafter referred to as ‘external markets’) totaled 32% (-5 p.p. qoq and +4 p.p. yoy);
    • share of sales to associated companies (NBH) totaled 17% (+6 p.p. qoq and -2 p.p. yoy).

H1 2016 highlights:

  • Crude steel output increased by 4% yoy to 8.22 m t.
  • NLMK Group capacity utilization rates were up by 3 p.p. to 97%.
  • NLMK Group sales increased by 1% to 8.1 m t driven by a 10% yoy increase in flat steel sales (to 4.17 m t).

*Note: NLMK Group’s foreign companies (foreign subsidiaries) are NLMK’s subsidiaries located outside of Russia. Their results are reflected in the Group’s Foreign Rolled Products Segment. They include NLMK USA companies and thick plate manufacturer NLMK Dansteel (Denmark).
Foreign affiliated (associated) companies are international assets of NLMK Belgium Holdings (hereinafter referred to as “NBH”). Its results are not consolidates and are reflected separately from the results of NLMK Group.