Tough year sees Evraz losses as profits fall by $979m

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Evraz, the steel making and mining company, has posted preliminary results for the year ended 31 December (results). The firm saw pre-tax profits of $873m fall to a loss of $106m, a relative change of 112.1 per cent. The firm stated that global steel prices softened as a result of global economic conditions and that they expect global prospects to remain fragile for the rest of 2013.

Alexander Frolov, CEO commented on the results:
The year 2012 was characterised by challenging trading conditions for the global steelmaking industry. Although some recovery was seen during the first half of the year, there was a significant deterioration in sentiment towards the year end. As a result, steel and raw material markets remained highly volatile with global steel industry capacity experiencing substantial underutilisation.
The subdued steel and raw materials pricing environment impacted EVRAZ's financial performance. Although the Company demonstrated respectable operating results, we experienced a 10% decline in revenues to US$14,726 million against 2011, while EBITDA was 31% lower at US$2,012 million.