Evraz eyes rocky 2012

Russian steel giant Evraz said it expected the global steel industry to remain challenging in 2012, as it unveiled its maiden full year figures as a FTSE 100 company.

Evraz' share price has been hit recently by falling steel prices and the firm said the market continued to face challenges and was likely to remain volatile this year.

It said that Russian steel prices had remained broadly flat in in the first quarter compared to the last three months of 2011.

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This meant its cost base was increasing due to the ongoing strengthening of the Rouble, the firm said.

"Our current expectation is for a modest overall rise in steel consumption, driven by demand from the emerging markets," said Chief Executive Alexander Frolov

Evraz reported a pre-tax profit of $873m, up from $633m in 2010.

However, net profits slipped below market expectations as did earnings per share, which dropped from 39c to 36c per share over the period.

The firm announced a a gross final dividend of 17c per share.