ArcelorMittal posts $3 billion Q3 profit

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ArcelorMittal, the world's largest steelmaker, posted a third-quarter net profit of US dollar 3 billion on Wednesday with help from continuing high steel prices and increased sales in new markets.

The earnings were up 36 per cent from the same period last year, but the company gave a gloomier outlook for the fourth quarter due to declines in its flat and long carbon steel operations in Europe and in North and South America. It was also expecting lower sales of its stainless steel operations.

The Luxembourg-based company reported net sales of US dollar 25.52 billion, a 16 per cent rise from the US dollar 22.07 billion pro forma net sales figure for the third quarter of 2006.

"Underlying demand remains weak, but production levels, imports and inventory levels continue to fall, resulting in a healthy supply situation and an increase in price," Chief Executive Lakshmi Mittal said in a conference call.

He said he expected more price increases in the US market next year. ArcelorMittal has already raised its prices there by around US dollar 20 per ton since the start of the fourth quarter, Mittal said.

He added that he was "very pleased with the overall progress" of the newly merged Mittal Steel Co NV with Arcelor SA, which got final shareholder approval earlier this month.