OAO Mechel led declines on Russia’s benchmark Micex Index after posting a second-quarter net loss.
The stock dropped 3.5 percent to 218.10 rubles by the close in Moscow after falling as much as 4.7 percent earlier. The Micex Index declined 0.3 percent to 1,485.63.
Mechel, Russia’s biggest producer of steelmaking coal, swung to a net loss of $823 million from profit of $218 million in the first quarter as prices fell. Excluding the impairment of some assets and provisions for amounts owed by related parties, the loss would be $177 million, Mechel said today in a statement.
“The results are weak,” George Buzhenitsa, an analyst for Deutsche Bank AG in Moscow, said by phone. With steel and raw material prices likely to decline in the second half, “it’s hard to see how the company’s financial performance can improve in the short term.”