Arcelor Acesita posts decline in profit

Brazilian steelmaker Arcelor Acesita disclosed that its net profit fell 28.9 percent year on year to Real 126 million ($60 million) in the first quarter of 2006. Sales amounted to Real 696 million ($325 million) during the same period, down 23.6 percent from a year earlier. Arcelor Acesita Chairman Jean-Philippe Andre Demael said “The second quarter is expected to be better than the first quarter due to the strong demand and increase in stocks. However, prospects for the second half are uncertain due to the expected decline in the price of nickel and the sharp rise in Brazilian Real”.