Mechel announces growth in first quarter report

Russian metals giant Mechel has announced its first quarter operational results, revealing a seven percent growth on the year.

“In the mining segment, despite a temporary halting of mining at Southern Kuzbass Coal Company OAO’s New-Olzherassk and Sibirginsk mines, production of run-of-mine coal throughout Mechel Group grew by seven percent compared to the same period last year, with sales of coking coal up by 14 percent and sales of anthracites up by 26 percent.” Mechel CEO Yevgeny Mikhel said, according to GlobeNewsWire.com.

Mikhel added that by increasing production of high value-added products, the company saw a 256 percent increase in PCI sales, as well as a 19 percent decrease in steam coal sales.

The company also managed to increase sales of both long and flat rolls, by 12 and 14 percent respectively. Mikhel attributed the increased sales to Mechel Service Global’s expanding client base.

“On the whole, the results of 2012′s first quarter show positive dynamics.” Mikhel said, according to GlobeNewsWire.com. “Thanks to our program of modernization and cost-cutting, production and sales of our key products had increased and the company’s position on the market has been further consolidated.”

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