• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

Mechel Reports Its Production Results For 2005

Posted on: Friday, 10 February 2006, 09:00 CST

MOSCOW, Feb. 10 /PRNewswire-FirstCall/ -- Mechel OAO , a leading Russian integrated mining and metals company, has announced today its production results for 2005.

Product 2005, thousand tonnes 2005 as compared to 2004, % Coal 15,646 0 Coking coal 8,583 - 8 Steam coal 7,063 + 12 Iron ore concentrate 4,522 + 17 Nickel 12.6 - 1 Coke 2,589 - 12 Pig iron 3,349 - 14 Steel 5,899 - 5 Rolled products 4,600 - 2 Commodity billets 1,777 + 10 Long products 2,510 - 9 Flat products 313 - 6 Stampings 104 + 33 Hardware 557 0

Vladimir Iorich, Mechel's Chief Executive Officer, commented on production results for 2005: "Notwithstanding the difficult market environment we faced last year, we believe that Mechel's diversified business allowed us to react flexibly within our major segment, mining, and to focus on increasing steam coal output on the back of the declining coking coal market. In 2006 we see good prospects for our coal division, and believe that we are on track to reach our goal to produce 25 million tonnes of coal by 2010. The year turned out to be extremely successful for our iron ore facilities, as concentrate output has increased significantly due to the continuing upgrade of the Korshunov Mining Plant, which considerably contributes to our self-sufficiency in raw materials. We have also achieved positive technological results in our nickel division, as we are reducing coke consumption and improving profitability of ferronickel production. In our steel segment we maintained finished product output practically at the level of the previous year due to the increase of overall efficiency."

Mechel OAO Irina Ostryakova Phone: 7-495-258-18-28 e-mail: irina.ostryakova@mechel.com

Mechel is one of the leading Russian mining and metals companies. Mechel unites producers of coal, iron ore, nickel, steel, rolled products, and hardware. Mechel products are marketed domestically and internationally.

Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of Mechel, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not intend to update these statements. We refer you to the documents Mechel files from time to time with the U.S. Securities and Exchange Commission, including our Form 20-F. These documents contain and identify important factors, including those contained in the section captioned "Risk Factors" and "Cautionary Note Regarding Forward- Looking Statements" in our Form 20-F, that could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, the achievement of anticipated levels of profitability, growth, cost and synergy of our recent acquisitions, the impact of competitive pricing, the ability to obtain necessary regulatory approvals and licenses, the impact of developments in the Russian economic, political and legal environment, volatility in stock markets or in the price of our shares or ADRs, financial risk management and the impact of general business and global economic conditions.

Mechel OAO

CONTACT: Irina Ostryakova, Mechel OAO, +7-495-258-18-28, oririna.ostryakova@mechel.com

Source: PRNewswire-FirstCall

More News in this Category