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Severstal Profit Jumps

Sales increase by 43% in the first nine months of 2010.

Russian steel giant Severstal said Nov. 16 it had earned a net profit of $368 million in the third quarter as the sector recovers from the global economic crisis.

"The third quarter was a good result in market conditions which continue to be challenging," Severstal CEO Alexey Mordashov said in a statement.

The group returned to profit in the second quarter with net earnings of $192 million after a loss of $785 million in the first quarter.

Sales increased by 43% in the first nine months of 2010 to $11.3 billion said Severstal, which expects steel and raw materials prices slightly weaken or remain stable for the rest of this year and strengthen in 2011.

The company said it benefited in the third quarter from its diversification into other metals and minerals as raw material prices rose during the period of seasonal decline in steel demand.

Copyright Agence France-Presse, 2010

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