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. Last Updated: 07/27/2016

Steel Prices Push Up Severstal's Profits

bloombergA worker checking the quality of coils of hot rolled steel at a plant owned by Mordashov's Severstal in Cherepovets.
Severstal said its first-quarter 2007 profit rose 82.5 percent year on year to $396 million on higher prices for steel and the raw materials produced by its mining division.

Severstal said in a statement that revenue rose 34.9 percent to a quarterly record of $3.68 billion and profit from operations grew 53 percent to $635 million.

Earnings before interest, taxation, depreciation and amortization rose 43 percent to $921 million.

"We are building successfully on the changes we made last year to provide us with a strong platform for the future," majority owner and CEO Alexei Mordashov said in the statement.

Severstal is the country's largest steelmaker by volume including its foreign assets. It competes with Evraz Group, Magnitogorsk Iron and Steel and Novolipetsk Steel.

Russia is the world's fourth-largest steel producer, accounting for 5.7 percent of global output last year.

Severstal operates Russia's second-largest steel plant, in the town of Cherepovets, and owns assets in the United States and Italy.

Severstal may build a new plant in its home market to benefit from a building boom, Mordashov said Monday.

Severstal could expand its main factory in Cherepovets or pick a new site in Russia, where annual demand for rebar and rolled steel is growing by one-third, Mordashov said in a conference call with investors.