On February 10, Luxembourg-based steel giant ArcelorMittal, the world's largest steelmaker by volume and revenue, announced its financial results for the fourth quarter of 2009 and the whole year.
Accordingly, the steelmaker saw its results improve in the fourth quarter compared to the previous quarter. The company posted a net profit of $1.07 billion in the fourth quarter, up compared to the net loss of $2.63 billion in the fourth quarter of 2008 and to the net profit of $903 million in the third quarter of 2009. The company's sales revenues fell to $18.64 billion from $22.09 billion in the same period of 2008 but were higher than the $16.17 billion recorded in the third quarter. ArcelorMittal's earnings before interest, taxes, depreciation and amortization (EBITDA) of $2.13 billion for the fourth quarter were down from $2.81 billion in the same quarter of 2008 but were higher than the $1.59 billion recorded in the third quarter of 2009.
In 2009, the company's results were dramatically down compared with 2008. ArcelorMittal posted a net profit of $118 million, substantially down compared to the net profit of $9.4 billion in 2008. The company's sales revenues fell to $65.11 billion in 2009 from $124.93 billion in 2008. ArcelorMittal's earnings before interest, taxes, depreciation and amortization (EBITDA) of $5.82 billion for 2009 were down from $24.48 billion 2008.
Commenting on the results, Mr. Lakshmi N. Mittal, chairman and CEO of ArcelorMittal, said, "In a very difficult environment, ArcelorMittal has succeeded in reducing its cost base substantially and significantly strengthening the balance sheet. We therefore start the year in a good position to benefit from the progressive, albeit slow, recovery that is underway. Although 2010 will continue to be challenging, we are now increasing capital expenditure to take advantage of selected growth opportunities as demand improves."