Russia's Mechel posts 226% rise in US GAAP net income in 1Q07

MOSCOW, July 11 (RIA Novosti) - Mechel [NYSE: MTL], one of Russia's leading mining and metals companies, said Wednesday its net income, calculated to US GAAP accounting standards, increased 226%, year-on-year, in the first quarter of 2007, to $205 million.

"The first quarter of 2007 was successful for Mechel. The company demonstrated considerable growth in all areas compared with the same period last year due to successes in building up output and raising production efficiency and due to the favorable price situation," said Igor Zyuzin, the Mechel general director.

The company's revenues climbed 65.9%, year-on-year, to $1.42 billion in January-March 2007 and earnings before interest, taxes, depreciation and amortization (EBITDA) were up 164.5%, to $355 million.

Mechel is a fully integrated mining and steel company focused on the production of mining products such as coal, iron ore, nickel and steel products.

In 2005, Mechel had US GAAP revenues of $3.8 billion, net income of $381 million and EBITDA of $726 million.