Russian Steel Makers May Sell Two Siberian Mines
Russian steel producer Evraz reported a net loss for 2009 of $1.25 billion compared with a net profit of $1.78 billion in 2008, Chief Executive Officer Alexander Frolov said on Wednesday. Revenues were down 52.1% to $9.772 billion. Total debt fell to $7.923 billion.
Mr Frolov said the results reflect the fall in construction and infrastructure projects throughout the world; however he was optimistic about Evraz’s prospects for 2010 on the back of increased demand from Asia. Total debt fell to $7.923 billion.
Commenting on the results, Chief financial officer Giacomo Baizini said: "Our net loss of $1,261m for 2009 reflects the global softness of steel markets.
"However it should be noted that in the absence of the effect of the revaluation of certain asset classes due to the change in accounting policy under IAS16, the net loss would have amounted to US$207 million.
"This change resulted in additional depreciation of $558m (net of income tax effect of $148m) due to higher asset values, a loss from the revaluation deficit of $420m (net of income tax effect of $144m) recognised on the date of revaluation, and an additional impairment loss on goodwill of $76m (nil income tax effect)."
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