Bloomberg News

Norilsk 2011 Profit Falls Short of Analyst Estimate Due to Costs

June 06, 2012

OAO Norilsk Nickel, Russia’s largest mining company, reported 2011 profit below analyst estimates on higher production costs and a loss from discontinued operations.

Net income was $3.6 billion compared with $3.3 billion a year earlier, Norilsk said today on its website. Excluding a $560 million loss on the disposal of utility OAO OGK-3, profit would be $4.18 billion, it said. That’s less than the $4.67 billion median estimate of 12 analysts in a Bloomberg survey.

Cash operating costs rose 16 percent to $4.62 billion on higher expenses for metals purchases and labor costs, outpacing sales growth, Norilsk said. Revenue grew 11 percent to $14.1 billion, with nickel accounting for half of metal sales.

Earnings before interest, taxes, depreciation and amortization rose 0.4 percent to $7.24 billion, it said.

To contact the reporter on this story: Ilya Khrennikov in Moscow at ikhrennikov@bloomberg.net

To contact the editor responsible for this story: John Viljoen at jviljoen@bloomberg.net


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