Mechel reports the 1Q 2011 financial results

Moscow, Russia – June 29, 2011 – Mechel (NYSE: MTL), a leading Russian mining and steel group, today announced financial results for the 1Q 2011.
Yevgeny Mikhel, Mechel‘s Chief Executive Officer, commented on the 1Q 2011 results: "Q1 2011 was not easy for the Company, with both positive and negative moments. Nevertheless, we have demonstrated stable operational and financial performance, kept implementing investment projects at the same high rate, and continued to optimize the debt portfolio. Having consolidated the results achieved last year, we established a secure basis for using favorable market price conditions in Q2 and Q3 at our key markets to maximum efficiency and for further active development."
The net revenue in 1Q 2011 increased by 54.4% and amounted to $2.9 billion compared to $1.9 billion in 1Q 2010. The operating income rose by 203.7% and amounted to $448.4 million or 15.28% of the net revenue, compared to the operating income of $147.6 million or 7.77% of the net revenue in 1Q 2010.
In 1Q 2011, Mechel‘s consolidated net income attributable to shareholders of Mechel OAO increased by 274.3% to $309.1 million compared to the consolidated net income attributable to shareholders of Mechel OAO of $82.6 million in 1Q 2010.
The consolidated adjusted EBITDA in 1Q 2011 increased by 123.1% to $ 566.9 million, compared to $254.0 million in 1Q 2010. Depreciation, depletion and amortization in 1Q 2011 for the Company were $140.2 million, an increase of 16.2% compared to $120.6 million in 1Q 2010.