Chesterton Tribune                                                                                   Adv.

ArcelorMittal posts 3Q profit of $1.35 billion

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By KEVIN NEVERS

ArcelorMittal (AM) is reporting a net income in the third quarter of 2010 of $1.35 billion or 89 cents per share, compared to a net income of $1.704 billion or $1.13 per share in the second quarter and a net income of $910 million or 60 cents per share in the year-ago period.

“In Q3 the business performed towards the lower end of our expectations against a background of seasonally lower volume, weakening spot prices, and higher costs,” AM Chair and CEO Lakshmi Mittal said in a statement released today. “Our outlook for Q4 remains cautious as the expected higher input prices continue to work through the business and demand remains muted, though with some regional differences.”

Some third-quarter numbers:

•Sales of $21.039 billion, compared to $21.651 billion in the second quarter and $16.17 billion in the year-ago period.

•Shipments of 21 metric tons, compared to 22.8 metric tons in the second quarter and 18.2 metric tons in the year-ago period.

•Crude steel production of 22.7 metric tons, compared to 24.8 metric tons in the second quarter and 19.6 metric tons in the year-ago period.

•Operating income per ton of $50, compared to $76 per ton in the second quarter and $18 per ton in the year-ago period.

•Capacity utilization decreased to 71 percent, due to seasonal slowdown, compared to $78 percent in the second quarter.

4Q Outlook

Shipments are expected to “improve slightly,” the company said, but average steel selling prices are expected to decline and capacity utilization levels are expected to remain flat.

Increased operating costs are anticipated, compared to those in the third quarter, due to higher raw material costs.

Flat Carbon Americas

The Flat Carbon Americas segment posted the following numbers in the third quarter:

•An operating income of $521 million, compared to $819 million in the second quarter and $83 million in the year-ago period.

•Sales of $4.75 billion, compared to $5.135 billion in the second quarter and $3.287 billion in the year-ago period.

•The average selling price was $826 per ton, compared to $810 in the second quarter and $653 in the year-ago period.

•Operating income was $105 per ton, compared to $153 per ton in the second quarter and $20 per ton in the year-ago period.

•Crude steel production was 5,932 tons, compared to 5,854 tons in the second quarter and 4,162 tons in the year-ago period.

•Steel shipments were 4,979 tons, compared to 5,346 tons in the second quarter and 4,323 tons in the year-ago period.

Other Numbers

•Net debt increased in the third quarter by $1.8 billion to $22.1 billion, compared to $20.3 billion on June 30, 2010.

•The company reported liquidity in the third quarter of $14.9 billion on Sept. 30, 2010, compared to $12.8 billion on June 30, 2010.

•At the end of the third quarter the company’s annualized sustainable savings remained flat at $3 billion, compared to $3 billion at the end of the second quarter. The company also achieved $4.4 billion in annualized temporary fixed cost savings resulting from “industrial optimization in response to lower demand,” compared to $3.9 billion in the second quarter.

 

 

Posted 10/26/2010

 

 

 

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