NEW YORK OAO Severstals North American operations posted lower financial results in the fourth quarter as an unplanned outage at its Dearborn, Mich., mill reduced output, the Russian steelmaker said.
The Moscow-based companys Severstal International unit, which includes its Dearborn and Columbus, Miss., steel works, recorded revenue of $810 million in the fourth quarter, down 11 percent from $910 million in the third quarter, while earnings before interest, taxes, depreciation and amortization (Ebitda) per tonne fell to $6 from $16 in the same comparison.
Severstal partially attributed the weaker results to a November pipe explosion at the Dearborn mill, which resulted in a two-week outage (amm.com, Nov. 28). Lower realized steel prices, a decrease in selling volumes and a write-off related to provisions against receivables at Severstals coke production venture, Mountain State Carbon LLC, also contributed to the lower results, it said.
For all of 2012, Severstal International logged a net loss of $258.8 million on revenue of $3.9 billion.