TMK Reports Quarterly Drop In Q213 Net Profit
News: Russian steel pipe manufacturer TMK has announced that its Q213 net profit fell 53% quarter-on-quarter to US$40mn, reports Steel Orbis. Sales revenue fell 4%, totalling US$1.65bn, with the company attributing this performance to an unfavourable sales mix and weak pricing. Earnings before interest, taxation, depreciation and amortisation stood at US$250mn, down 8% from the previous quarter.
BMI View: Russia's metals sector will face slow growth in 2013 as the eurozone crisis drags on and metals prices weaken. We expect production of key metals to remain modest, with company investment plans focusing on improving processing plant efficiency and reducing costs rather than building new plants or expanding production capacity. Despite the weak growth, Russia will remain one of the world's largest producers of key base and industrial metals such as nickel, steel and aluminium.