MMK boosts net profit

The net profit of Magnitogorsk Iron and Steel Works (MMK) under Russian Accounting Standards (RAS) grew 68.12 percent to over RUR26.1bln (approx. USD1.03bln) in the first half of 2007 compared to the same period a year earlier. According to the company's data, net profit stood at around RUR15.789bln (approx. USD621mln) in Q2 and some RUR10.312bln (approx. USD405m) in Q1.

MMK attributed the increase in its net profit to faster sales revenue growth, which reached 16 percent (up from 11 percent a year ago) and a revaluation of its shares in the second quarter.

MMK's net worth stood at nearly RUR176.08bn (approx. USD6.92bn) in Q2 2007, which is 39.6 percent ahead of Q1 2007. This increase is traced to a rise in share and additional capitals as a result of an IPO and higher net profit and retained income and a revaluation of its fixed assets.