Mittal Steel posted a seven per cent rise in second
quarter profit against a 35 per cent fall registered by
Arcelor for the same period. Mittal reported a net profit
of $1.09 billion for the April-June 2006 period against
$1.02 billion for the same period last year. Net profit
at Arcelor for the same period was down at $837 million
from $1.34 billion for the same period in 2005.
Steel, the world''s biggest steel maker, which is buying
its closest rival Arcelor, said its operating profit rose
nearly 50 per cent from the previous quarter to $1.52
billion even as sales rose 9.5 per cent to $9.23 billion.
we anticipated in May, the recovery is now under way in
Asia resulting into higher selling prices," chairman
Lakshmi Mittal said in a statement. "Additionally,
we have delivered a strong performance in Europe, particularly
in Ukraine where synergies are now being delivered, and
in America, where costs have been reduced," Mittal
forward, we expect market conditions to continue to improve,
driving further growth in shipments and operating income
in the third quarter," Mittal said.
Steel said it had already secured 92 per cent of the shares
in Arcelor. Mittal had also said it would also reopen
its offer for Arcelor before August 17 to give shareholders
another chance to accept the bid.
acquire Arcelor Brazil: Meanwhile, a Brazilian regulator
has directed Mittal to make an offer to buy out shareholders
of a Brazilian division of Arcelor as well. Mittal, by
taking control of Arcelor SA, "has the legal obligation
to make a mandatory buy-out offer to Arcelor Brazil shareholders,"
the regulator said on its website. The requirement excludes
minority shareholders in Acesita SA, Arcelor''s stainless-steel
unit in Brazil. The ruling could add an extra $3.8 billion
to Mittal''s takeover costs.
Mittal had to spend in managing its acquisition bid, Arcelor
said it had to bear additional costs of (€182 million)
in fighting a Mittal take-over bid and another (€140
million) as damages to Russian
steel firm Severstal.
combined Arcelor Mittal will have 320,000 employees and
produce about 116 million tonnes of steel per year, about
10 per cent of global production.