By KEVIN NEVERS

ArcelorMittal (AM) is reporting a net income of $2.371 billion or $1.69 per share for the first quarter of 2008, compared to $2.435 billion or $1.72 per share for the fourth quarter of 2007 and $2.25 billion or $1.62 per share for the year-ago period.

Other first-quarter numbers:

•EBITDA—operating income plus depreciation—was $5.044 billion, compared to $4.847 billion in the fourth quarter and $4.346 billion in the year-ago period.

•Operating income was $3.614 billion, compared to $3.29 billion in the fourth quarter and $3.455 billion in the year-ago period.

•Sales were $29.809 billion, compared to $27.993 billion in the fourth quarter and $24.476 billion in the year-ago period.

•Shipments were 29.2 million metric tons, compared to 28 million metric tons in the fourth quarter and 27 million metric tons in the year-ago period.

“ArcelorMittal has again delivered a strong set of numbers for the quarter, with EBITDA of $5 billion,” AM Chair and CEO Lakshmi Mittal said in a statement released today. “Despite global economic uncertainties, we are continuing to see strong demand for steel and a healthy pricing dynamic. This global demand is supported by the continued industrialization of a number of key, emerging economies and ArcelorMittal is well positioned to continue to take advantage of these dynamics.”

“We have also now fully captured the $1.6 billion of synergies that we announced we expected from our successful merger with Arcelor,” Mittal added. “Looking forward, we expect EBITDA in the second quarter to be higher than in the first quarter to exceed $6.5 billion, largely on account of strong demand for products across all regions.”

Flat Carbon Americas

The Flat Carbon America’s segment reported the following numbers for the first quarter:

•Total steel shipments were 7.6 million metric tons, compared to 7.3 million metric tons for the fourth quarter.

•Sales were $6.5 billion, compared to $6.2 billion for the fourth quarter.

•Operating income was $880 million, compared to $693 million for the fourth quarter.

Results increased “primarily due to higher shipments and higher average selling prices, partially offset by increased input costs,” AM said.

“Shipments increased primarily at our U.S. and Canadian operations despite weak underlying economic conditions due to a favorable demand for products stemming from supply side constraints and continued low imports,” AM noted. “Average selling prices increased due to favorable demand as well as our ability to pass on some increased input costs to our customers.”

Other Numbers

•As of March 31, the company’s cash and cash equivalents were $7.2 billion, compared to $8.1 billion on Dec. 31, 2007.

•As of March 31, the company’s net debt was $27.4 billion, compared to $22.5 billion on Dec. 31. AM attributed the increase chiefly to share buy-backs, foreign exchange impact, and investments.

•Capital expenditures were $1 billion in the first quarter, compared to $2 billion in the fourth quarter. AM attributed the decline to seasonal factors.

•In the first quarter the company returned $2.6 billion to shareholders, consisting of $533 million in cash dividends and $2.107 million in share buy-backs. The buy-back program is part of the company’s policy to return 30 percent of the previous year’s net income to shareholders, together with the company’s base dividend of $1.50 per share per year.

•On May 7 AM announced that a court-appointed trustee has completed the sale of its Sparrows Point, Md., mill to OAO Severstal for $810 million, net of debt.

•The company expects continued strong steel demand and supply constraints in the second quarter, with shipments anticipated to increase over the first quarter. It also expects improved volumes and steel selling prices partially offset by “unprecedented input prices increases.”

Posted 5/14/2008