ArcelorMittal returns to profit after three consecutive quarterly losses
28 Oct 2009
After a global plunge in demand for steel, where steelmakers cut back on production and idled plants, ArcelorMittal, the world's largest steelmaker reported a profit for the third quarter after posting three consecutive quarterly losses.
The Luxembourg-based steelmaker made a net profit of $903 million for the three months ended 30 September, 76 per cent less than the $3.82 billion it made a year earlier in the same period.
In the first quarter 2009, ArcelorMittal had reported a net loss of $1.1 billion against a net loss of $2.6 billion in the last quarter of 2008, (See: ArcelorMittal reports $1.1 billion Q1 loss), which in the second quarter had declined to a net loss of $0.8 billion. (See: ArcelorMittal reports $0.8 billion Q2 loss) The result surpassed analyst's expectations, who had forecasted a net loss of $53 to $58 million.
Revenue in the third-quarter fell 54 per cent to $16.17 billion from $35.2 billion in the same period a year ago.
In the quarter, the steelmaker was able to achieve annualised cost reduction of $2.2 billion and reduce its net debt to $21.6 billion, down by $10.9 billion over last twelve months.
Lakshmi Mittal, chief executive and chairman of ArcelorMittal, said, ''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 utilisation to be approximately 70 per cent. We should continue to see further gradual improvement through 2010, although the operating environment remains challenging."
