SNA

Severstal North America ("SNA"), a leading steel producer in the United States
and a subsidiary of Severstal, a global steel and mining company, reports
another strong financial performance in the second quarter of 2014.


Severstal North America delivered significant growth in sales volumes of 6% q/q,
while average selling prices decreased by 1.0% to $827/t, partially due to a
lower share of HVA products in the sales portfolio.


Revenue of $1,066 million was up 4.9% q/q driven by higher sales volumes. H1
2014 revenue of $2,082 million was also up, by 10.6% y/y, on better pricing and
higher utilization rates.


Q2 EBITDA was 33.3% higher q/q at $100 million primarily reflecting improvements
at Dearborn's operations. Results at the Columbus operations remained strong,
with EBITDA/t firm at $108/t. The 2nd quarter's EBITDA was one of the highest
ever recorded by Severstal North America in its ten-year history.


EBITDA of the whole division in H1 2014 was up 86.2% y/y at $175 million.

Additionally, in Q2, SNA became cash positive q/q and H1 2014 cash generation
considerably increased with 344% growth y/y on the back of higher EBITDA and net
working capital release.


"SNA's outstanding results this year are a testament to the transformation
currently taking place across several critical areas - safety, talent, culture,
operations, quality and commercial. Given the solid and sustainable platform
that has been built over the last year, we are very excited about the future
growth and profitability of our plants, especially in light of the recent news
of their upcoming divestiture," said Saikat Dey, CEO of Severstal North America.


To view the full Q2 and H1 2014 report, go here
http://www.severstal.com/files/12844/Severstal%20-%20Q2%202014%20Press%20Release_ENG.pdf


About Severstal North America:

Established in 2004, Severstal North America is one of the largest steel
producers the United States, specializing in the full range of high quality
light flat rolled products. Corporate headquarters and integrated operations are
located in Dearborn, Mich. A state-of-the-art electric arc furnace operation in
Columbus, Miss. serves the growing demand for steel in the southeastern United
States. Severstal also has several joint ventures specializing in value-added
coated products and coke making. The company serves customers in more than 20
markets, including automotive, appliance, construction, container, pipe and
tubing, distribution, converter and service centers. Severstal North America is
a wholly-owned subsidiary of OAO Severstal, one of the world's largest
vertically integrated steel and mining companies. Visit our website at
www.severstalna.com or follow us on Twitter @SeverstalNA.



FOR FURTHER INFORMATION PLEASE CONTACT: 

Contact:
Katya Pruett
+1 (313) 317-9760

William Noakes 
+1 (313)-323-6389

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