Steel giants report earnings boost

ArcelorMittal, the world's biggest steelmaker, and ThyssenKrupp AG said profit rose after prices for the metal outpaced raw-material costs.

Net income climbed 5.4 percent to $2.37 billion in the first quarter, Luxembourg-based ArcelorMittal said yesterday in a statement. It forecast an increase in second-quarter profit and lifted European flat carbon steel prices for July and August. ThyssenKrupp, Germany's largest steelmaker, said profit doubled to 502 million euros in the quarter to March 31.

ArcelorMittal, formed in 2006 after billionaire Lakshmi Mittal's Mittal Steel Co bought Arcelor for $38.3 billion, has raised prices as iron ore and coking coal soared to records. Hot-rolled steel, used in cars and construction, increased 34 percent in the quarter, according to figures from Metal Bulletin.

"These results are good and they are saying that the second quarter will be better," Alan Coats, an analyst at HSBC Holdings Plc in London, said, referring to ArcelorMittal's earnings. "Europe was dramatic while Asia, the CIS and Africa was slower, which was a bit of a surprise."

ArcelorMittal advanced 1.36 euros, or 2.2 percent, to 62.49 euros at 10:48 am in Amsterdam trading, boosting the company's market value to 92 billion euros. ThyssenKrupp declined 0.7 percent to 44.28 euros in Frankfurt.

"Despite global economic uncertainties, we are continuing to see strong demand," ArcelorMittal Chief Executive Officer Mittal said in the statement.

Agencies

(China Daily 05/15/2008 page16)