BUSINESS

ArcelorMittal posts $1.7 bn profit in Q2

Source:PTI
July 28, 2010 12:10 IST

ArcelorMittal on Wednesday reported a net profit of $1.7 billion in the April-June quarter on account of improved steel demand.

In the year-ago period, the company had a net loss of $792 million, ArcelorMittal said.

The company's sales increased to $21.65 billion in the second quarter ended June 30, 2010 from $15.17 billion in the year-ago period, thereby registering a growth of 43 per cent.

"The improved performance in the second quarter is in line with our expectations and reflects the continued slow and progressive recovery," ArcelorMittal chairman and CEO Lakshmi N Mittal said.

During the quarter, overall steel shipments rose to 22.8 million metric tonnes from 17 million metric tonnes for the three months ended June 30, 2009.

Looking ahead, steel giant is expecting to post an earnings before interest, taxes, depreciation in the range of $2.1 billion to $2.5 billion in the third quarter.

"Although the third quarter will be impacted by a combination of seasonal factors and the effects of the economic slowdown in China, underlying demand continues to show improvement.

"The challenge for the second half of the year will be to pass on the full extent of cost increases to our customers," Mittal said.

Meanwhile, the company also said that it was considering spinning off its stainless steel division.

"We are assessing the spin-off of our stainless division from the remainder of the group. We have confidence in the future of the stainless business and believe that the creation of a separately focused company will create additional value for all shareholders," Mittal added.

During the quarter, EBITDA from Asia Africa and Commonwealth of Independent States regions jumped 77 per cent to $483 million and sales climbed 50 per cent to $2.56 billion.

"Sales improved primarily due to higher average steel selling prices and higher steel shipments," the company noted.

Source: PTI
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