Ispat’s profit grows despite increase in costs
Despite lower sales, Ispat International has announced profit of $14 million for Q2, compared to the profit of $11 million in the same period last year. Compared with the same quarter last year, consolidated sales have increased from $1.2 billion to $1.4 billion and the operating income have increased from $30 million to $58 million, however steel shipments have declined 2%, which is from 4.1million/tons to 4million/tons. Despite the efforts of the company to reduce costs and the increase in the costs of raw materials, energy, transportation and employment, it is stated that the company's financial situation has improved. Ispat has stated that, it estimates the Q3 profit to be lower than Q2 but it also expects a recovery in Q4.