Adjusted EBITDA

Adjusted EBITDA* margin slightly decreased from 17% in 2010 to 16% in 2011. The following table shows the Adjusted EBITDA by reporting segments:

  Year ended December 31  
  2011 2010 Change Change
  in millions of U.S. dollars in millions of U.S. dollars in %
Russia 721 633 88 14%
America 265 281 (16) (6)%
Europe 64 29 35 121%
TOTAL ADJUSTED EBITDA 1,050 942 108 11%

Russia. In 2011, Adjusted EBITDA increased 14% or $88 million. The faster pace in cost growth as compared to growth in revenue was partially compensated by the decrease in the share of selling, general and administrative expenses in revenue. As a result, the Adjusted EBITDA margin decreased from 16% to 15%.

America. Adjusted EBITDA decreased 6% or $16 million in 2011. Adjusted EBITDA margin decreased from 21% to 17% following a decline in gross profit margin from 23% to 20%.

Europe. The growth of Adjusted EBITDA margin from 11% to 17% mostly resulted from an increased share of certain high-margin orders for industrial heat-treated alloy pipe.

* Adjusted EBITDA — See "Selected financial data".

Services & Tools

My Annual Report

Tools