Consolidated Income Statements

		Year ended December 31,
	Note	2009	2008*	2007
Sales
Sales – external		12,951,669	22,138,418	15,352,404
Sales – to related parties	11	102,830	254,299	150,984
	4	13,054,499	22,392,717	15,503,388
Cost of sales		(11,356,293)	(16,499,914)	(10,821,582)
Gross profit		1,698,206	5,892,803	4,681,806
General and administrative expenses		(735,561)	(1,026,790)	(766,890)
Distribution expenses		(864,225)	(1,117,776)	(942,533)
Other taxes and contributions		(171,601)	(178,886)	(154,070)
Share of associates’ profit/(loss)		11,488	(3,400)	6,240
Net (loss)/gain from securities operations	6	(15,304)	(96,812)	25,564
Loss on disposal of property, plant and equipment		(32,001)	(43,278)	(35,525)
Net other operating (expenses)/income	7	(36,329)	790,580	(7,266)
(Loss)/profit from operations		(145,327)	4,216,441	2,807,326
Impairment of non-current assets	8	(219,019)	(1,540,263)	(28,895)
Negative goodwill	29	–	292,326	12,223
Net other non-operating (expenses)/income	9	(34,441)	238,945	(58,676)
(Loss)/profit before financing and taxation		(398,787)	3,207,449	2,731,978
Interest income		103,822	155,232	166,639
Interest expense		(601,244)	(508,369)	(325,580)
Foreign exchange difference		(205,028)	(274,920)	3,206
(Loss)/profit before income tax		(1,101,237)	2,579,392	2,576,243
Income tax expense	10	(17,858)	(517,466)	(700,153)
(Loss)/profit from continuing operations		(1,119,095)	2,061,926	1,876,090
Profit from discontinued operations	28	–	–	433
(Loss)/profit for the year		(1,119,095)	2,061,926	1,876,523
Attributable to:
shareholders of OAO Severstal		(1,037,240)	2,028,972	1,849,531
non-controlling interests		(81,855)	32,954	26,992
Weighted average number of shares outstanding during the period (millions of shares)		1,005.2	1,007.2	1,007.7
Basic and diluted (loss)/earnings per share (US dollars)		(1.03)	2.01	1.84

* These amounts reflect adjustments made in connection with the completion of purchase price allocations (Note 29)