ArcelorMittal says profit falls 10% but efficiency rises

27th July 2011, Comments 0 comments

Steelmaking giant ArcelorMittal reported a 10-percent fall in net profit in the second quarter on Wednesday but said that profitability improved and its shares gained 2.16 percent.

The net figure for the quarter was $1.53 billion (1.0 billion euros) and sales rose by 24.7 percent from the equivalent figure last year to $25.1 billion.

Earnings before interest, tax, depreciation and amortisation, a measure of underlying profitability, rose by 21.5 percent to $3.4 billion and this was near the top of the range expected by analysts.

But the next quarter is usually comparatively slack for the steel industry and the group said that its EBITDA figure would fall to $2.4-2.8 billion.

Chief executive Lakshmi Mittal said that as expected the group had performed well in the second quarter, driven by a rise in steel prices.

The price of shares in the group rose by 2.16 percent to 22.65 euros in early trading.

© 2011 AFP

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