ArcelorMittal posts USD 1.7 bn profit in Q2

Last Updated 28 July 2010, 07:12 IST

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

The company's sales increased to USD 21.65 billion in the second quarter ended June 30, 2010 from USD 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 (EBITDA) in the range of USD 2.1 billion to USD 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 (CIS) regions jumped 77 per cent to USD 483 million and sales climbed 50 per cent to USD 2.56 billion.

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

(Published 28 July 2010, 07:12 IST)

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