ArcelorMittal released third quarter and first nine months of 2011 earnings. Net income for 3Q11 was $0.7 billion, down from $1.5 billion in the second quarter and down from $1.4 billion in 3Q10. The first nine months 2011 net income was $3.3 billion, down from $3.7 billion last year’s same period.

Total steel shipments for the nine months were 65.2 million metric tonnes, up from 63.8 million for the same period last year. Sales increased 24.8% to $71.5 billion from 2010 due to 20.8% higher average steel selling prices and 2.1% higher steel volumes.

The third quarter 2011 total steel shipments were 21.1 million metric tonnes, down from 22.2 million last quarter and up from 20.5 million in 3Q10. Sales declined 3.6% to $24.2 billion from second quarter 2011, but sales were up 22.6% from 3Q10. The decrease in sales was due to 1.7% lower average steel selling prices and 4.9% lower volume of shipments.

For the Flat Carbon Americas segment, crude steel production decreased 6.5% from 2Q11 to 5.9 million tonnes for 3Q11. The decrease was attributed to production downtime in the North American operations. Steel shipments were 5.7 million tonnes, up 3.4% from 2Q11 from improved auto demand. Sales in this segment were $5.5 billion, down 1.2% from 2Q11 from 5.3% lower average steel selling prices “primarily in Mexico and Brazil due to slab shipments partially offset by higher steel volumes,” according to the Company.

ArcelorMittal expects fourth quarter shipments to be lower than 3Q11 levels due to uncertain demand, but iron ore and coal production is expected to increase in the fourth quarter.

Mr. Lakshmi N. Mittal, Chairman and CEO, ArcelorMittal, said, “Uncertainties around the economic outlook have increased in recent weeks, impacting the confidence levels of our customers, so as we move in to the 4Q we are facing both volume and price pressures.”

Source: ArcelorMittal