Mittal Steel expects $9.9 bn margins by '08

Despite being rebuffed by Arcelor, the world's biggest steel maker Mittal Steel is in no mood to lose its numero uno position among steel producers and has projected its operating cash flow to touch $9.9 billion by 2008.

In 2006, Mittal Steel is expecting EBITDA (earning before interest, tax, depreciation and amortisation) to reach approximately $7.3 billion, as compared to $5.8 billion in 2005, according to an official statement by the company.

The operating income is expected to shoot up to $6.1 billion, compared to $4.7 billion in 2005. Besides, the company has pegged its shipments for 2006, at approximately 60 million tonne.

"The outlook for the steel industry is positive, supported by strong global growth, especially from high-growth, developing markets. Mittal Steel is ideally placed to benefit from these dynamics, which has allowed us to identify net EBITDA improvements of $3.3 billion over the next 3 years," Lakshmi N Mittal, chairman & CEO of Mittal Steel, said.