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Updated March 11, 2010
ArcelorMittal’s 2nd-Half Rebound Its performance in the final two quarters allowed the world’s largest steelmaker to report a profitable year at $118 million in income. ArcelorMittal reported sales of $18.6 billion during the fourth quarter, a slight improvement from the $16.1 billion during the previous quarter, but behind the $22.1 billion during the final three months of the previous year. Fourth-quarter shipments of 71.1 million tons represented a 10 percent improvement from the previous quarter. Additionally, capacity utilization improved to 70 percent during the quarter. “In a very difficult environment, ArcelorMittal has succeeded in reducing its cost base substantially and significantly strengthening the balance sheet. We therefore start the year in a good position to benefit from the progressive, albeit slow, recovery that is under way,” said Lakshmi Mittal, chairman and CEO. “Although 2010 will continue to be challenging, we are now increasing capital expenditure to take advantage of selected growth opportunities as demand improves.” Crude steel production by the company’s Flat Carbon Americas division reached 5.4 million tons for the three months ended Dec. 31, an increase of 25 percent compared to 4.3 million tons for the previous quarter. Sales in the segment were $4.1 billion for the final quarter, an increase of 24 percent compared to the third quarter. Crude steel production from ArcelorMittal’s Long Carbon Americas and Europe division reached 5.4 million tons, an increase of 13 percent from the third quarter. Sales totaled $4.6 billion, up 6 percent from the prior quarter, due primarily to higher steel shipments and a marginal improvement in average steel selling prices. As a result of the improved demand in both North American and European steel sectors, the company has restarted certain steel production facilities during the quarter. In late January, ArcelorMittal announced plans to restart the blast furnace at its East Chicago, Ind., facility. SSAB Proceeding with The QT line in Mobile is part of a major investment program announced in August 2008, and will increase the company’s capacity for QT plate by approximately 200,000 tons. “We are broadening our product and service offering for the North American domestic market and creating conditions for meeting the needs of SSAB’s global customers,” says David Britten, head of SSAB Americas. Additionally, the company will install a finishing line at SSAB’s plate center in Kunshan, China. Altogether, the company will invest $300 million in the two projects. The new quenching line in Mobile is expected to begin production during the first half of 2012. The finishing line in Kunshan will start up in the first half of 2011. MSCI Steel product activity Shipments of steel from Canadian service centers totaled 444,400 tons during January. Canadian inventories at the end of the month of 1.18 million tons were equal to a 2.7-month supply. Aluminum product activity Mill Steel Expands Reach South Mill Steel will continue operating the former assets as Coated Steel Co., and the company's leadership team will remain in place. Mill Steel expects to create as many as 30 new sales and production jobs at its 120,000-square-foot Birmingham processing facility during the next year. It also plans to increase its existing Birmingham production capability in the next few months with the installation of a new 72-inch slitter and packaging line. Chairman and CEO David S. Samrick said the acquisition is a mutually beneficial transaction for Mill Steel and the customers of CSC. "We are excited to add the former management of CSC to our team, and look forward to working with them to continue building our reputation for delivering first-rate customer service and quality steel products across the United States, Canada and Mexico.” The new Birmingham location will allow Mill Steel to enhance its service to a growing base of customers across a broad range of markets in the southeastern U.S. and Mexico, as well as boost its technical support to customers in the regions. The acquisition also ensures that CSC will be able to support larger customers by leveraging Mill Steel’s size and service capabilities, say company officials. Castle Opens New “We are very excited about this new facility and believe that it will help us better service our Canadian oil and gas customers,” says Michael Goldberg, CEO and president of A.M. Castle & Co. “We have had a long-standing business relationship with the Canadian oil and gas industry and despite the current tough economic times the Canadian market remains a critical piece of our global oil and gas portfolio. We believe this investment is not only the right investment for todaybut for the future.” The new facility in Edmonton is approximately 50,000 square feet in size and provides a broad range of services including metal distribution and processing. The facility has been fully operational since December. Future Metals Opens New The new facility will offer more inventory capacity, plus additional value-added service capabilities for the company’s customer base in New England and Eastern Canada. Future Metals supplies aircraft tubing and other metals to the aerospace industry. “Our customers want quicker deliveries and additional services,” says Frank Ruggiero, Future Metals’ vice president of sales and marketing. “This new service center will offer them both.” In an unrelated move, parent company Marmon/Keystone will close its warehouse operations in Bolingbrook, Ill. The company will continue serving customers in the Chicago area and elsewhere through its new facility on 22 acres in Spring Valley, Ill., located along Interstate 80 just west of the I-39 interchange. The new facility is expected to be operational near the end of the third quarter or early in the fourth quarter. The current building and land in Bolingbrook will be sold, but management, administrative and sales personnel will remain in the existing offices. The company may pursue future relocation to an office complex in or near Bolingbrook. |
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