World's largest steel maker ArcelorMittal today reported a 29% growth in net income at $ 3.8 bn for the three months ended September 30, even as it cut production at various facilities across the globe to tame the slump in demand.
Also, the company has slashed its earnings' outlook for the fourth quarter this year due to increased production cuts. The company had reported a net income of $ 3 bn in the September quarter of 2007, the company said in a statement.
Sales for the third quarter ended September 30 increased 38% to $35.2 bn from $25.5 bn in the same period a year ago.
"We have announced today strong results for the quarter with EBITDA of $ 8.6 bn.
Looking forward, we have also announced necessary and responsible measures to ensure we are well adapted to the current environment.
"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 Chairman and CEO Lakshmi N Mittal said.
ArcelorMittal, with its diversified business model, strong cash-flow and cost leadership position, is well placed to weather the challenging economic environment that the company is currently facing, Mittal added.
In its outlook for the three months ended December 31, the company expects the Earnings Before interest, tax, depreciation and Amortisation (EBITDA) to be in the range of $ 2.5-3 bn, "due to increased production cuts following expected weaker demand across all segments as a consequence of the current credit and economic environment."
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