Novolipetsk Steel, one of Russia's largest steel and rolled stock producers, said its net profit rise in the reporting period was attributable to the sale of its stakes in the Lebedinsky Ore Mining and Processing Plant and the KMAruda mining company in the Belgorod Region on the Ukrainian border, which yielded about 12.8 billion rubles (about $492 million).
Sales climbed 17.7% in the reporting period, to 140.3 billion rubles (about $5.4 billion), and gross profit was up 28.8%, to 65.35 billion rubles (about $2.5 billion), the company said.
Novolipetsk Steel, which is based in Lipetsk, Central Russia, attributed its improved sales and gross profit indices to a favorable situation on the world metal products market and the expanded output and sales volumes.
The integrated steel-making company produces pig iron, slabs, hot-rolled, cold-rolled, galvanized, pre-painted, and grain- and non-grain-oriented steel.
Novolipetsk Steel increased steel output by 7.8%, year-on-year, in 2006, to 9.13 million metric tons.
Vladimir Lisin, chairman of the Novolipetsk Steel board of directors, controls 89.85% of the company's stock.
