tycoon, posts $903m gain after three quarterly losses
Brussels, Belgium, Oct 29, 2009
UK NRI, LN Mittal chairman & CEO of ArcelorMittal posted a
$903-million US profit in the third quarter, its first after three
consecutive quarterly losses. He said that "As anticipated,
we have seen the first signs of recovery in the third quarter. In
response to this increased demand, a number of our facilities have
now been re started, and we expect fourth quarter crude steel capacity
utilization to be approximately 70%. We should continue to see further
gradual improvement through 2010, although the operating environment
ArcelorMittal is planning a 50% increase in capital spending in
2010 to take advantage of growth opportunities in emerging markets
Mittal, steel tycoon said:
- In 2010, capital investment would be USD 4 billion- USD 5 billion
as compared to USD 3 billion in 2009.
- We are looking at growth initiatives in parts of the world where
steel demand is likely to grow at a reasonable rate, in line with
the expectation of a recovery.
- Demand in many parts of the world is coming back to normal,
although we will see most of the extra consumption taking place
in emerging markets rather than in the US and Europe
- Company's EBITDA for the fourth quarter to be USD 2 billion-USD
- EBITDA for the third quarter was USD 1.6 billion, which was
in line with the company's previous guidance of between USD 1.4
billion and USD 1.8 billion.
- The shipments had risen 7% in the three months to the end of
September as compared with the previous quarter.
- The U.S. is seeing both "real and apparent demand"
as companies go beyond restocking and increase output.
- One sign of real growth is higher sales to carmakers, whose
recovery has been largely fuelled by the U.S. government's cash-for-clunkers
- It was unclear whether higher European demand reflects a solid
manufacturing recovery. The company's European flat carbon and
global stainless steel and services divisions continued to report
a loss in the third quarter.
The chief financial officer Aditya Mittal said, "We believe
we are through the worst and the economy is still weak, particularly
in the developed world, and the recovery will continue to be slow
- This year, third-quarter profit was down from the same period
in 2008, when the company made $3.82 billion
- This year, sale was $16.18 billion as compared over $35 billion
in 2008... and little over $15.17 billion in
the second quarter.
ArcelorMittal is the world's leading steel company, with operations
in more than 60 countries.
ArcelorMittal is the leader in all major global steel markets,
including automotive, construction, household appliances and packaging,
with leading R&D and technology, as well as sizeable captive
supplies of raw materials and outstanding distribution networks.
With an industrial presence in over 20 countries spanning four continents,
the Company covers all of the key steel markets, from emerging to
In 2008, ArcelorMittal had revenues of $124.9 billion and crude
steel production of 103.3 million tonnes, representing approximately
10 per cent of world steel output.