Mittal Steel reports third quarter results
Rotterdam-based Mittal Steel Company announced results for its third quarter ended September 30, 2005.
Net income of the company decreased $622 million, or 56.5 percent, quarterly to $478 million in the third quarter. The figure shows a 63 percent decrease from $1.3 billion in the third quarter of 2004. Among other things, the decrease in net income was a function of weak prices and the company's purchase of a 36.67 percent stake in
China's Hunan Valin.
Consolidated sales of the company decreased $500 million quarterly to $7.1 billion, but increased $1.3 billion year on year. Operating income decreased $635 million quarterly and $400 million year on year to $765 million.
Mittal Steel sold 13 million tons of steel in the third quarter, up 800'000 tons quarterly and 2 million tons year on year. The company's average price decreased 11 percent quarterly and 1 percent year on year, while steel shipments increased 7 percent quarterly and 18 percent year on year primarily due to the acquisition of ISG in the second quarter of 2005. The company shipped 5.8 million tons of products to the Americas (up 400'000 tons quarterly), 4 million tons to
Europe (same with the second quarter), and 3.2 million tons to Asia and
Africa (up 500'000 tons).
The company continued its
production cutbacks in order to reduce global inventories in the third quarter.
The company expects slightly higher shipments and prices for the fourth quarter of 2005, and cost of sales are expected to increase primarily due to increased pressure on energy costs. The company expects operating income per ton to be up to $10 higher than the third quarter 2005.