Russian mining and steel group Mechel has announced its consolidated financial results for the first half of the current year. In the first half, Mechel saw a net profit of RUB 4.69 billion ($69.93 million), decreasing by six percent year on year. In the first half this year, Mechel's sales revenues increased by five percent year on year to RUB 157.03 billion ($2.34 billion). In the same period, the company's operating income increased by six percent to RUB 32.64 billion ($486.4 million) compared to the same period of the previous year.
The revenue of Mechel's mining segment from external customers in the first half of the current year totaled RUB 48.4 billion ($721.24 million), down six percent, while its steel segment's revenue from external customers in the same period amounted to RUB 94.38 billion ($1.4 billion), up 11 percent, both compared to the corresponding period of the previous year.
Mechel’s CEO Oleg Korzhov stated that the company’s first half results have improved year-on-year, due to the implementation of its strategy of increasing the share of high-margin products in its production and sales structure, as well as a favorable market environment for most of its products.