Until recently, steel production, particularly in the area of special purpose alloys, alloyed steels or tool has been very profitable and cost-effective. Now, however, against the background of the crisis processes in the global economy and the slowdown in consumer activity in the context of the entire world community, many leading enterprises of the steel cover on the verge of profitability. A similar fate befell a reputable manufacturer of various kinds of stainless steel from the Urals. Reduction of consumer interest in the company's products is reflected in the decrease in net sales to seventeen percent. Additionally exacerbated the situation increased processing costs. With the increase in the cost of many types of fuel and energy cost increases in the production of Ural Steel has increased several times. However, despite such a difficult situation, the overall result of the company can not be considered satisfactory. Indeed, despite the difficult economic situation, the company's loss ratio decreased. In comparison with the figures of the previous year this figure fell almost in half. The decline in activity of the Ural plant can be attributed to several underlying factors. Firstly, a crushing blow to the stability in this area has caused a decrease in domestic demand. Sales of finished commodity products decreased by fifty-four per cent of the domestic markets, as compared with last year's results. Second, significantly reduced the volume of export sales, according to conservative estimates the decline here is estimated at a minimum of eighteen percent. Incidentally it is worth noting that the calm in the sale of products does not apply to all items of goods. Against the background of a significant reduction in the supply of semi-finished rolled steel, pig iron shipment volumes on the contrary, increased. Sale of iron in the domestic market compared to last year has increased almost twice. Losses of the enterprise in all of the above are totally dependent on the outcome of the company's financial ability to live in all respects. To reduce debt has helped some increase in income from other activities, but in general, Ural Steel is still below the profitability. Perhaps the way out of such a difficult situation will be a reduction of unprofitable production capacity most of compartments or conversion of the production lines.
22 April 2014
Losses "Ural Steel"
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