Russia's Evraz misses H1 net forecasts after disposal

MOSCOW, Aug 27 (Reuters) - Evraz (LSE: EVR.L - news) , one of Russia's largest steel producers, reported a $4 million rise in first-half net profit on Thursday but fell well short of analysts' forecasts after taking a loss on a subsidiary disposal.

Net profit of $19 million included a $167 million loss on the disposal of its share of South African steel maker Highveld .

Analysts polled by Reuters had expected a net profit of $219 million.

Evraz has been hit by low steel prices which has been only partially offset by a weaker rouble.

"Sales volumes in our core Russian and North American markets contracted significantly, compounded by continued pressure on global steel prices," Chief Executive Alexander Frolov said.

Revenue fell by 28 percent to $4.9 billion, while core earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 15 percent to $922 million.

The company expects its second-half results to continue to be affected by weak steel prices and raw material markets. (Reporting by Polina Devitt and Svetlana Burmistrova; editing by Jason Neely)