HomeIndustrial MineralsSharp rise in ArcelorMittal earnings

Sharp rise in ArcelorMittal earnings

Production in progress
at the world’s top
steel producer
Luxembourg, Luxembourg — MININGREVIEW.COM — 31 July 2008 – ArcelorMittal SA – the South African unit of the world’s top steel-maker with an industrial presence in over 20 countries spanning four continents – has posted a 45% rise in first-half earnings per share on buoyant global steel prices and a weaker rand.

Releasing its results for the first half of 2008 here, the company said it expected third-quarter profit to be “substantially higher” than in the second quarter as demand and prices remained robust, but added that earnings would be hit by higher costs and exchange rate swings.

Overall company highlights included: sales of $67.6 billion (R540 billion) – up 31% compared with January to June 2007; EBITDA of $13.1 billion (over R100 million) – up 35% compared to last year; net income of $8.2 billion (R65 billion) up 65%; and capital expenditure of $2.3 billion (R18 billion) during the first half of 2008.

The news release added that South African headline earnings had totalled R4.6 billion, boosted by higher international steel prices and strong demand at home from a construction boom. Income from its coke and chemicals and marketing and shipping businesses also lifted earnings, as did a weaker rand versus the dollar. But that was partially offset by lower sales volumes and higher costs.

Revenue in South Africa rose 26% to R18.4 billion rand, while profit from operations rose 28 % to R5.4 billion.