Global steel giant ArcelorMittal on Wednesday reported a net income of $1.07 billion for the three month period ended December 31, 2009, on the back of improvement in demand and several cost cutting measures.
In the year-ago period, the firm had a net loss of $2.63 billion, ArcelorMittal said in a statement.
Looking ahead, ArcelorMittal expects the year 2010 to continue to be a challenging year. The company's sales declined to $18.64 billion in the October-December quarter of 2009 from $22.08 billion in the same quarter last fiscal.
The steel behemoth's sales stood at $16.2 billion in the third quarter of 2009. "Sales were higher during the fourth quarter of 2009 as compared to the third quarter of 2009, primarily due to higher volumes and average steel selling prices.
"Despite the improvement in demand during the fourth quarter of 2009, sales remain substantially lower year-on-year due to the global economic crisis," the company said. ArcelorMittal witnessed pick up in demand in the fourth quarter with the total steel shipments rising to 20 million tonnes from to 17.1 million tonnes in the same quarter of 2008. The increase resulted from improved demand across all segments.
The company's chief executive Lakshmi Mittal said 2010 would continue to be challenging, although capital expenditure would rise.
"We therefore start the year in a good position to benefit from the progressive, albeit slow, recovery that is underway," Mittal said.
