Novolipetsk Steel Slashes Forecasts

Novolipetsk Steel cut its revenue forecast on Wednesday as it prepares to join rivals in reining in production because of a global slowdown in demand for steel products.

The steelmaker expects full-year revenues of $12.5 billion and core earnings of $5 billion, below previous forecasts, and said it would bring forward maintenance work at its main Russian plant as the global economic slowdown hit fourth-quarter demand.

"This may result in a decrease in 2008 output compared with forecast output," Novolipetsk, or NLMK, said in a statement.

NLMK is the latest Russian steel major to feel the effects of the global financial crisis, after rivals Magnitogorsk Iron & Steel Works and Severstal announced output cuts.

NLMK had previously forecast a rise of up to 70 percent in full-year 2008 revenues and 60 percent in earnings before interest, taxation, depreciation and amortization.