Metallurgical industry of Ukraine in January-March increased losses (negative financial result before taxation), compared with the 1st quarter of 2013 to 4 times, or by UAH 9.6 billion to 12.7 billion. About this UNIAN reported in the Association of metallurgical enterprises "Metallurgprom".
"The significant growth losses (about 9 billion) occurred due to losses from exchange rate differences with the revaluation of foreign currency borrowings and interest thereon", the report said.
According to "metallurgproma" net income (proceeds) metpredpriyatiy from product sales for the 1st quarter decreased by 1.6% (0.4 billion UAH) and amounted to 36.1 billion UAH. In this case, said "Metallurgprom", the sales volume in natural terms decreased by 8%, while prices for ferrous metals rose on average by 3%.
Losses from operating activity has amounted to UAH 1.5 billion against UAH 2.1 billion in Q1 2013.
The operating margin for January-March 2014 amounted to minus 3,71% against "minus" of 5.25% for the same period last year.
According to "metallurgproma" the cost of electricity in the 1st quarter grew by 8.4%, Cox – 2%. In this case, the price decline for scrap by 2.5% and natural gas by 10%. The average material costs for the production of steel products during the reporting period increased by 7%.
As UNIAN reported earlier, the metallurgical industry of Ukraine in 2013 reduced losses (negative financial result before tax) compared with 2012 increased 22.3% or UAH 3.5 billion to 12.2 billion, a negative return on sales amounted to minus of 9.1% vs 9.8% in 2012.