UK NRI steel tycoon, posts $903m gain after three quarterly losses

Brussels, Belgium, Oct 29, 2009
Susma/ NRIpress

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 remains challenging."

ArcelorMittal is planning a 50% increase in capital spending in 2010 to take advantage of growth opportunities in emerging markets

NRI 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 2.4 billion.
• 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 program.
• 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 and progressive."

• 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 mature.

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.

UK NRI Mittal, steel tycoon

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