Mechel Targoviste 1Q Loss Narrows To RON12.6M

05.13.2011 By Andrei Circhelan

Romanian steel producer Mechel Targoviste (COS.RO) Friday reported a first-quarter loss of 12.6 million lei (EUR3 million), lower than RON28.7 million in the year-earlier period.

The company's revenue more than doubled to RON322.5 million, from RON143.4 million in January-March 2010, while expenditure rose to RON335.12 million, from RON172.1 million.

Sales increased by 43.4%, to RON249.7 million, from RON174 million, Mechel Targoviste said in its financial report.

For this year, the company expects a net loss of RON17.27 million, compared to RON155.16 million in 2010.

The company is 86.6% owned by the Mechel group, while privatization authority AVAS has a 9.35% stake.

Russian steel group Mechel entered the Romanian market in 2002 and currently owns local companies Mechel Campia Turzii (INSI.RO), Mechel Targoviste (COS.RO), Ductil Steel Otelu Rosu and Laminorul Braila.

Mechel Targoviste shares were last traded Monday, at RON1.277, down 14.92% on the reference. (EUR1=RON4.106)