Chesterton Tribune

ArcelorMittal posts strong 2Q with net income of $1.535 billion

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By KEVIN NEVERS

Arcelor Mittal (AM) is reporting a net income in the second quarter of 2011 of $1.535 billion or 99 cents per share, compared to $1.069 billion or 69 cents in the first quarter and $1.706 billion or $1.13 in the year-ago period.

“As expected the company has delivered a strong performance in the second quarter of 2011 underpinned by higher steel selling prices,” AM Chair and CEO Lakshmi Mittal said in a statement released today. “Although the third quarter will experience some seasonal impact, we do not expect this to be as pronounced as last year, and overall the group’s performance in the second half of 2011 should compare favorably with the second half of 2010.”

ArcelorMittal recorded an income tax expense of $61 million in the second quarter, compared to an tax benefit of $166 million in the first quarter and a tax benefit of $92 million in the year-ago period.

Outlook

“Raw materials accounting costs are expect to increase from 2Q 2011 levels” in the second half of the year,” the company said. “Due to the continued underlying demand recovery, steel shipments in the second half of 2011 are expected to be higher than the same period in 2010. Results of our mining business are expected to further improve due to increased production and shipments. For 2011 we continue to target 10-percent growth in iron ore production and 20-percent increase in coking coal production.”

Other 2Q Numbers

•Sales of $25.126 billion, compared to $22.184 billion in the first quarter and $20.154 in the year-ago period.

•Shipments of 22.2 million metric tons, compared to 22.0 million in the first quarter and 22.3 million in the year-ago period.

•Crude steel production of 24.4 million metric tons, compared to 23.5 million in the first quarter and 24.3 million in the year-ago period.

•Operating income of $2.252 billion, compared to $1.431 billion in the first quarter and $20.154 billion in the year-ago period.

Flat Carbon America 2Q

•An operating income of $697 million, compared to $307 million in the first quarter and $441 million in the year-ago period.

•Sales of $5.567 billion, compared to $4.939 billion in the first quarter and $4.64 billion in the year-ago period.

•The average selling price was $961 per ton, compared to $830 in the first quarter and $810 in the year-ago period.

•Operating income was $126 per ton, compared to $55 in the first quarter and $82 in the year-ago period.

•Crude steel production was 7.87 million tons, compared to 7.631 million in the first quarter and 8.507 in the year-ago period.

•Steel shipments were 7.166 million tons, compared to 7.384 million in the first quarter and 7.54 million in the year-ago period.

 

 

Posted 7/27/2011