Severstal reports Q4 & FY 2013 financial results

OAO Severstal (MICEX-RTS: CHMF; LSE: SVST), one of the world’s leading vertically integrated steel and steel-related mining companies, today announces its Q4 and FY 2013 financial results.

FY 2013 vs. FY 2012 ANALYSIS:

- Resilient performance achieved despite continued challenging market conditions driven by relentless focus on internal efficiencies, cost control, enhancing the product mix and higher customer satisfaction;

- Four consecutive quarters of q/q EBITDA growth delivered in 2013;

- Efficiency initiatives delivered impressive cost reductions and operational enhancements including:

- 4.1% decrease in Group cost of sales, achieved despite higher steel products sales volumes;

- 14.7% decrease in Group G&A expenses to $639 million (FY12: $749 million);

- 10.3% decrease in Group distribution costs, and;

- Second consecutive year of unit cost reductions at Russian mining operations;

· Business System initiatives embedded across the Group and delivering competitive advantage through creation of a continuous improvement culture;

- Group revenue decreased 5.6% y/y to $13,312 million (FY12: $14,104 million) due to weaker selling prices although Severstal International delivered stable revenue y/y despite price softening;

- Group EBITDA 4.4% lower y/y to $2,063 million (FY12: $2,158 million); a relatively resilient performance supported by strong earnings improvement by Severstal International and increased EBITDA at Severstal Russian Steel;

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