OAO Severstal-auto has published IFRS consolidated financial statements for the six months ended 30 June 2005

16.09.2005

According to the IFRS accounts, Severstal-auto’s consolidated net income for the first six months of the year increased by 21.1%, reaching $23 million. Sales increased by 1% to $396 million, while EBITDA declined by 3.6% to $51 million, with the EBITDA margin at 13% compared to 13.6% for the first half of 2004. Net income margin rose to 5.8% from 4.9%. Net operating cash flow totalled $20 million, in contrast with a negative $1 million in the first half of 2004. In summary, despite a reduction of units sales of vehicles and engines due to the downtime at UAZ and ZMZ in January 2005, Severstal-auto has been able to demonstrate healthy results. According to Nikolay Sobolev, Severstal-auto’s CFO, these results were achieved primarily thanks to implementing a comprehensive cost-cutting programme which included optimisation of manufacturing processes at UAZ and ZMZ and restructuring of assets.

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