Mechel Targoviste Sees Narrower Loss In 2011

04.28.2011 By Florentina Dragu

Romanian steel maker Mechel Targoviste (COS.RO) expects 2011 losses will narrow substantially, as revenues are seen growing by 36.7% to RON1.25 billion (EUR306 million).

Romanian steel maker Mechel Targoviste (COS.RO) expects 2011 losses will narrow substantially, as revenues are seen growing by 36.7% to RON1.25 billion (EUR306 million).

Mechel Targoviste estimates a loss of 17.27 million lei (EUR4.2 million) this year, from RON155.16 million in 2010.

Total overall costs are expected to rise 18.6% on the year to RON1.27 billion.

Earlier this year, Mechel announced it will start production at the steel foundry in Otelu Rosu in the first quarter of the year, following EUR36 million upgrade works.

Russian steel giant Mechel, through its subsidiary Mechel International Holdings, owns 86.6% in the company, while the Romanian privatization authority AVAS holds 4.04% of its shares.

On the Bucharest bourse April 4, Mechel closed down 6.19% at RON1.501 a share.

Mechel also operates steel makers Mechel Campia Turzii (INSI.RO), Laminorul Braila (LMRU.RO) and Ductil Steel Otelu Rosu in Romania. (EUR1=RON4.0767)