In its financial results according to US GAAP (Generally Accepted Accounting Principles) for 2013, Russian steelmaker NLMK Group's net profit decreased by 68 percent compared to the previous year to $189 million due to reduced profits from core operations as market conditions deteriorated, and due to an increase in amortization expenses. In the fourth quarter of 2013, the company registered a net loss of $21 million compared to a net profit of $138 million in the previous quarter.
In 2013, NLMK's sales revenues decreased by 10 percent year on year to $10.909 billion due to a 4-6 percent year-on-year reduction in average sales prices, the deconsolidation of the results of NLMK Belgium Holdings (NBH) in Q4 2013, and a two percent reduction in steel product sales volumes. In the fourth quarter of 2013, the company's sales revenues declined by eight percent quarter on quarter to $2.505 billion due to the effects of the NBH deconsolidation and the seasonal weakening in demand and prices in the Russian market.
In 2013, EBITDA was down by 21 percent year on year to $1.505 billion. The EBITDA margin was down to 13.8 percent in 2013 from 15.6 percent in 2012.
