ArcelorMittal (AM) posted a net income of $679 million or 45 cents per share in the first quarter of 2010, compared to a net income of $1.07 billion or 71 cents per share in the fourth quarter and a net loss of $1.063 billion or 78 cents per share in the year-ago period.

“The economic recovery is continuing in line with our expectations and 2010 is set to be a strong year for ArcelorMittal,” AM Chair and CEO Lakshmi Mittal said in a statement released today. “The year has started with improved demand in all main markets, which will have a positive impact in the second quarter.”

“Shipments, average selling prices, and operating costs are all expected to be higher as compared to the first quarter of 2010,” the statement said. “The company also expects net debt to increase in the second quarter.”

Some first-quarter numbers:

•Sales of $18.652 billion, compared to $18.642 in the fourth quarter and $15.122 billion in the year-ago period.

•Shipments of 21.5 million metric tons, compared to 20.0 million in the fourth quarter and 16.0 million in the year-ago period

•Crude steel production of 23.1 million tons, compared to 22.5 million in the fourth quarter and 15.2 million in the year-ago period.

•Operating income per ton of $32, compared to $34 in the fourth quarter and an operating loss of $93 in the year-ago period.

•Capacity utilization increased to 72 percent from 70 percent in the fourth quarter and is expected to increase to 80 percent in the second quarter.

Net debt increased in the first quarter to $20.7 billion, compared to $18.8 billion from the fourth quarter, “primarily due to increased investment in working capital and the acquisition of non-controlling interests in ArcelorMittal Ostrava,” the statement said.

The company reported liquidity in the first quarter of $14.5 billion—comprised of $3.8 billion in cash and cash equivalents and $10.7 billion in available credit lines—compared to $17.2 billion in the fourth quarter.

At first quarter’s end, the company “had achieved annualized sustainable savings of $2.9 billion as compared to $2.7 billion” at fourth quarter’s end, “essentially meeting its 2010 full-year target to achieve management gains of $3 billion of sustainable SG&A and fixed cost reductions,” AM said. “The company also achieved $5 billion of annualized temporary fixed cost savings in the first quarter of 2010 resulting from industrial optimization in response to lower demand.”

The Flat Carbon America segment posted the following numbers in the first quarter:

•An operating income of $326 million, compared to $180 million in the fourth quarter and an operating loss of $664 million in the year-ago period.

•Sales of $4.431 billion, compared to $4.069 billion in the fourth quarter and $3.218 in the year-ago period.

•The average selling price was $722 per ton, compared to $719 in the fourth quarter and $751 in the year-ago period.

•Operating income was $62 per ton, compared to $37 per ton in the fourth quarter and an operating loss of $182 per ton in the year-ago period.

•Crude steel production was $5.6 million tons, compared to 5.4 million in the fourth quarter and 3.5 in the year-ago period.

•Steel shipments were 5.2 million tons, compared to 4.8 million in the fourth quarter and 3.6 million in the year-ago period.

Posted 4/29/2010