ArcelorMittal braced for lower profits in third quarter
Thursday 29 July 2010
ArcelorMittal, the world's biggest steel producer, unveiled a sharp jump in profits in the second quarter, but its chief executive warned on the impact on profits from an economic slowdown in China.
Lakshmi Mittal, who is the world's fifth richest person, according to Forbes magazine, also said it faced a "challenge" to pass on higher prices to its customers that have resulted from a spike in the cost of raw materials.
ArcelorMittal was hit by plummeting demand for steel from the car, construction, household appliances and packaging industries during the downturn, but as the world economy has emerged from recession it has now delivered four consecutive quarters of growth.
For the three months to 30 June, the steel giant delivered net income of $1.7bn (£1.1bn), following a loss of $792m a year ago.
ArcelorMittal's sales surged by 43 per cent to $21.7bn over the period, boosted by higher volumes and a rise in steel prices.
ArcelorMittal, which delivered 6 per cent of the world's steel output last year, posted earnings before interest, tax, depreciation and amortisation (Ebitda) up by 146 per cent to $3bn in the second quarter.
But the company guided to a lower Ebitda of between $2.1bn and $2.5bn for the three months to 30 September.
Mr Lakshmi, who is also the company's chairman and has a net worth of $28.7bn, according to Forbes, said: "Although the third quarter will be impacted by a combination of seasonal factors and the effects of the economic slowdown in China, underlying demand continues to show improvement."
Mr Lakshmi also revealed that the group is "assessing the spin-off" of its stainless steel division.
Diving in at the deep end is no excuse for shirking the style stakes
- 1 Why I'm on the brink of burning my Israeli passport
- 2 Comfortable in their own skin
- 3 Japanese plant experts produce 10,000 lettuce heads a day in LED-lit indoor farm
- 4 War is war: Why I stand with Israel
- 5 L'Oreal cuts ties with Belgium supporter Axelle Despiegelaere after hunting trip photographs
Israel-Gaza conflict: Death toll tops 125 after overnight raids as Operation Protective Edge continues
Game of Thrones author George RR Martin says 'f*** you' to fans who fear he will die before finishing Westeros saga
Ian Thorpe gay: Olympic swimmer comes out in Parkinson interview
Supermoon 2014: When and why will the moon look bigger and brighter this summer?
Gaza-Israel conflict: Pro-Palestinian demonstrators take to streets of London, Paris and New York in wave of protests
Sustained immigration has not harmed Britons' employment, say government advisers
War is war: Why I stand with Israel
7/7 memorial defaced on anniversary of 2005 attacks with ‘Blair lied thousands died’ graffiti
Australia facing international condemnation after turning around Sri Lankans at sea
Even when it brutalises one of its own teenage citizens, America is helpless against Israel
Socialist Worker called to apologise over ‘vile’ article saying Eton schoolboy Horatio Chapple's death is ‘reason to save the polar bears’
iJobs Money & Business
£70000 per annum: Harrington Starr: Information Security Manager (ISO 27001, A...
£75000 - £85000 per annum + ex bens: Deerfoot IT Resources Limited: Biztalk Te...
£60000 per annum: Harrington Starr: Trade Desk Specialist (FIX, Linux, Windows...
£35000 per annum: Harrington Starr: Service Desk Analyst (Windows, Active Dire...