Annual Report & Accounts 2013
Severstal Annual Report 2013 Home > Performance > Severstal International > Sales results
 

Sales results

While NAFTA steel demand in 2013 for hot-rolled, cold-rolled and coated products remained flat or declined, Severstal shipments of hot-dipped galvanized products grew by 7.7 per cent, followed by 2.1 per cent growth of hot-rolled strip and plate, and 4.4 per cent growth of cold-rolled sheet. Cold-rolled sheet and hot-dipped galvanised products are predicted to produce more growth in the future as our capacity continues to increase.

In 2013, the automotive market continued to improve significantly. Growth in construction was driven by the residential sector while the non-residential market declined.

Customer growth in both Columbus and Dearborn was due to a combination of market growth and share gain. For Columbus, the energy market (pipe and tube), had the greatest impact, while growth in Dearborn came from increases in automotive.

Sales by product

Dearborn and Columbus are prioritising the growth of the higher value added products in their portfolios. In 2011-2012, we launched two more galvanising lines at Columbus and Dearborn with a total capacity of one million tonnes, bringing our total capacity to two million tonnes. In 2013 we continued to increase our capacity, increasing sales of galvanised and other metallic coated sheet by 8 per cent in one year.

However, the division’s sales revenue remained unchanged in 2013 at US$3,878 million due to lower realized prices.

Revenue breakdown by product, 2013

  2013 2012 Change %
Sales by productThousand tonnesUS$ millionThousand tonnesUS$ millionThousand tonnesUS$ million
Hot-rolled strip and plate2,5061,765.32,4541,824.92.1%(3.3%)
Cold-rolled sheet567489.2543488.54.4%0.1%
Galvanized and other metallic coated sheet1,5801,496.31,4671,450.07.7%3.2%
Total rolled products4,6533,750.84,4643,763.44.2%(0.3%)
Total semi-finished products10.210.5--
Total steel products4,6543,751.04,4653,763.94.2%(0.3%)
Other and shipping-127.1-114.6n/a10.9%
Total4,6543,878.14,4653,878.54.2%-

Sales by market

In 2013, US domestic sales amounted to US$3,783.6 million, and export sales amounted to US$94.5 million. About 97.6 per cent of our revenue came from domestic sales to US steel consumers. Export sales are made up of Columbus’s sales to Mexico.

Severstal International FY 2013 revenue breakdown by region

  2013 2012 Change %
Domestic sales by product

Thousand tonnes

US$ million

Thousand tonnes

US$ million

Thousand tonnes

US$ million

Hot-rolled strip and plate2,4711,740.52,3811,770.73.8%(1.7%)
Cold-rolled sheet539466.5522470.23.3%(0.8%)
Galvanized and other metallic coated sheet1,5331,457.91,4411,426.26.4%2.2%
Total rolled products4,5433,664.94,3443,667.14.6%(0.1%)
Total semi-finished products10.210.5--
Total steel products4,5443,665.14,3453,667.64.6%(0.1%)
Other and shipping-118.5-106.7n/a11.1%
Total4,5443,783.64,3453,774.34.6%0.2%
  2013 2012 Change %
Export sales by productThousand tonnesUS$ millionThousand tonnesUS$ millionThousand tonnesUS$ million
Hot-rolled strip and plate3524.87354.2(52.1%)(54.2%)
Cold-rolled sheet2822.72118.333.3%24.0%
Galvanized and other metallic coated sheet4738.42623.880.8%61.3%
Total rolled products11085.912096.3(8.3%)(10.8%)
Total semi-finished products------
Total steel products11085.912096.3(8.3%)(10.8%)
Other and shipping-8.6-7.9-8.9%
Total11094.5120104.2(8.3%)(9.3%)

CEO statement

Our strategic goal remains the same: we aim to be a leader in value creation. In the current volatile and challenging market environment, this means the ability to generate solid positive free cash flow throughout the market cycle.

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Chairman statement

Since listing we have been committed to the highest standards of corporate Governance and aim for full compliance with the UK Corporate Governance Code.

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Performance review 2012

Severstal achieved a solid set of results in 2012, despite worsening economic conditions, maintaining the Group’s EBITDA margin at 15.0%, reflecting the resilience of the business.

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Performance review 2012 - Severstal International

Severstal is now strongly positioned in one of the world’s largest and most dynamic markets. We have invested heavily in our US operations since 2004 and now this modernisation is complete, we are making good progress towards our production targets.

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