ArcelorMittal Returns To Profit

ArcelorMittal SA, the world"s largest steel producer, has reported a profit of 903 million USD for July - September 2009, thus ending a run of three consecutive quarters in the red. The recovery was based on the resumption of production at certain facilities and an increase in exports driven by improving demand.

Nevertheless, the profit reported by ArcelorMittal for the third quarter of 2009 is 76 per cent smaller than the 3.82 billion USD landed in the corresponding period of 2008. Analysts were only expecting 58 million USD for Q3/09.

The steel giant posted a turnover of 16.2 billion USD for the third quarter of the year, down by 54 per cent from the 35.19 billion USD secured in the corresponding period of 2008.

ArcelorMittal CEO Laksmi Mittal commented that the third quarter had brought the first signs of recovery on the steel market after the global recession that had taken a dramatic toll on demand for steel products required by the auto industry and the construction industry.

"We should continue to see further gradual improvement through 2010, although the operating environment remains challenging," Mittal said.

ArcelorMittal posted an EBITDA of 1.59 billion USD for the referenced period, down by an annualized 81 per cent. Analysts had predicted more: 1.78 billion USD.

ArcelorMittal started the year by cutting production by 50 per cent, downsizing staff and selling stock and bonds to refinance some of its loans. In the year before, the steel giant had produced 101.6 million tons of steel, equal to 7.7 per cent of the global production of 1.32 billion tonnes.