Mumbai: ArcelorMittal, the world's largest steel maker, has reported a 29 per cent increase in its net income at $3.8 billion for the quarter ended 30 September despite production cuts at various facilities across the globe.

The company, however, slashed its earnings' outlook for the fourth quarter after cutting output and freezing growth plans in the face of a global slowdown.

Total sales were up 38 per cent at $35.2 billion in July-September 2008, compared with the same period last year, while EBITDA rose 76 per cent at $8.6 billion. Net income was up 29 per cent at $3.8 billion.

Total return to shareholders totalled $2.3 billion, including $0.5 billion in cash dividends paid and $1.8 billion in share buy-backs. Base dividend was maintained at $1.50 per share for 2009.

Total return to shareholders totaled $2.3 billion, including $0.5 billion in cash dividends paid and $1.8 billion in share buy-backs. Base dividend was maintained at $1.50 per share for 2009.

ArcelorMittal also undertook capital expenditure of $1.8 billion in Q308

For the fourth quarter, ie, October December 2008, ArcelorMittal said EBITDA is expected to be in the range of $2.5 - $3.0 billion and on track to deliver full year EBITDA of $24.2-$24.7 billion compared with 2007 full year EBITDA of $19.4 billion.

The company said it has taken initiatives to adapt existing growth plan to reflect market conditions. It has raised sales target  from $4 billion to $5 billion through better management and general and administrative savings over the next five years.

''We have announced today strong results for the quarter with EBITDA of $8.6 billion. Looking forward, we have also announced necessary and responsible measures to ensure we are well adapted to the current environment. Our focus remains on cost-leadership and service to customers,'' said Lakshmi N Mittal, chairman and CEO of  ArcelorMittal.

''The current period of de-stocking requires that we make appropriate production cuts to seek to rebalance supply and demand, and we are also accelerating efforts to pay down debt. ArcelorMittal, with its diversified business model, strong cash-flow and cost leadership position, is well placed to weather the challenging economic environment we currently face. We remain optimistic about the industry's medium-term growth prospects, but it is appropriate to pause our growth strategy until then,'' he added.

ArcelorMittal is the leader in all major global steel markets, including automotive, construction, household appliances and packaging, with leading R&D and technology, as well as sizable captive supplies of raw materials and outstanding distribution networks.

With an industrial presence in over 20 countries spanning four continents, the company covers all of the key steel markets, from emerging to mature.

In 2007, ArcelorMittal had revenues of $105.2 billion and crude steel production of 116 million tonnes, representing around 10 per cent of world steel output.

ArcelorMittal is listed on the stock exchanges of New York, Amsterdam, Paris, Brussels, Luxembourg and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia.