ArcelorMittal posts $1.7 billion net profit in Q2, expects slightly slower Q3

On July 28, the world's largest steelmaker Luxembourg-based ArcelorMittal issued its financial results for the second quarter of 2010, stating that the rising performance in the quarter reflects the continued slow and progressive recovery.
 
According to the financial results, the net profit of the company was $1.7 billion in the second quarter of 2010, compared with a net profit of $679 million in the first quarter of 2010, increasing 150 percent, and compared with a net loss of $792 million in the second quarter of 2009.
 
Sales revenues in the second quarter of 2010 were $21.7 billion, which increased 16 percent compared to $18.7 billion in the first quarter of 2010 and 43 percent compared to $15.2 billion in the second quarter of 2009.
 
The EBITDA of the company was $3 billion in the second quarter of 2010, compared with an EBITDA of $1.9 billion in the first quarter of 2010, increasing 58 percent, and $1.2 billion in the second quarter of 2009, increasing 150 percent.
 
Total steel shipments for the three months ended June 30, 2010 were 22.8 million metric tons as compared with 21.5 million metric tons for the three months ended March 31, 2010, and 17.0 million metric tons for the three months ended June 30, 2009.
 
Commenting on the results, chairman and CEO of ArcelorMittal, Lakshmi N. Mittal, said: "The improved performance in the second quarter is in line with our expectations and reflects the continued slow and progressive recovery. 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. The challenge for the second half of the year will be to pass on the full extent of cost increases to our customers."