Severstal reports Q3 2014 and 9M 2014 operational results

Moscow, Russia – October 15, 2014 – OAO Severstal (MICEX-RTS: CHMF; LSE: SVST), one of the world’s leading steel and steel-related mining companies, today announces its operational results for Q3 2014 and 9M 2014.

Q3 2014 Group highlights

  • On 19 August 2014, Severstal announced that it has completed the sale of PBS Coals Inc., a metallurgical coal producer located in Pennsylvania, USA., to Corsa Coal Corp., a Canadian public company. In regard to the sale and in full accordance with IFRS standards Severstal continues to report operational results of PBS Coals Inc. till 19 August 2014- the disposal date, which are included in the Group's Q3 2014 and 9M 2014 consolidated operational results
  • On 16 September 2014, Severstal announced that it has completed the sale of its Severstal Columbus, LLC and Severstal Dearborn, LLC subsidiaries, collectively known as Severstal North America (SNA), to Steel Dynamics, Inc. and AK Steel Corporation, respectively. In regard to the sale and in full accordance with IFRS standards Severstal has fully ceased reporting operational results of SNA and made restatements to consolidated operational results of the Group for the previous periods
  • Crude steel production increased 1% q/q to 2.86 mln tonnes (Q2 2014: 2.83 mln tonnes), which coupled with 3% q/q increase in hot metal production suggests lower consumption of scrap material in steelmaking process in Q3 2014
  • Consolidated sales of steel products decreased by 1% q/q reflecting decrease in semi-finished products sales
  • The share of high value-added products in the sales portfolio increased by 6 bpts to 53%
  • Steel assets ran at near to full capacity in Q3

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