UPDATE 1-Russia's Severstal upbeat after 25 pct rise in Q3 earnings
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MOSCOW, Oct 19 (Reuters) - Russia's Severstal , oneof the country's largest steelmakers, reported a 25 percent risein third-quarter core earnings on Friday compared to the sameperiod the previous year, though slightly below analystforecasts.
Earnings before interest, taxation, depreciation andamortisation (EBITDA) totalled $768 million, the company said.Analysts had forecast earnings of $773 million. Net profit was $455 million in the third quarter, up 53percent year-on-year, the company said.
However, compared to the previous quarter revenues declined,slipping 9 percent to $2,063 million. This was due to reducedsales volumes, the company said, and declining steel prices.
Chief executive Alexander Shevelev said the company expectsglobal demand to support a solid performance in the nextquarter.
"We are expecting global steel demand to remain at goodlevels on the back of strength of the world's economy andcontinued capacity cuts in China," Shevelev said.
The company's board recommended a third-quarter dividendpayment of 44.39 roubles ($0.6755) per share on Thursday, payingout over 100 percent of its quarterly free cash flow, Severstalsaid. Analysts at BCS Global Markets struck a cautious note.
"We disagree with management's view on (the fourth quarterof 2018), as steel prices are softening in Russia and globally,"BCS Global Markets analyst Oleg Petropavlovsky said, pointing toweak sales volumes.
Last week, Severstal reported crude steel sales fell 5percent compared to the previous quarter. Shares in the company were flat in early trading on theMoscow exchange.
(Reporting by Polina IvanovaEditing by Maria Kiselyova and Elaine Hardcastle)
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