Severstal NA Reports Utilization Rates Close to 100%

Severstal NA revenue for Q2 rose to $953 million from $930 million in the first quarter 2013.  Demand growth was led by U.S. automotive, construction and pipe and tube industries. First half 2013 revenue, however, fell to $1,883 million from $2,158 million in H1 2012—a 12.7 percent loss. Severstal reported a utilization rate of almost 100 percent compared to the average of 78 percent for the US steel industry, but lower prices impacted increased production gains.  A decrease in EBITDA to $44 million was attributed to a cash settlement with a coking supplier, resulting in a $12 million charge.

For the company overall, Severstal reported a second quarter loss of $44 million compared to a net profit of $44 million in the first quarter.  The loss was primarily due to $226 million foreign exchange loss (FX) in the second quarter.  Excluding FX losses the company’s profit would be $182 million.