(RTTNews) - ArcelorMittal (MT: News ) reported Wednesday a 76.4% decline in third-quarter profit, as sales more than halved, hurt by lower steel demand and sharply lower selling prices. However, posting a profit after three consecutive losses, the Luxembourg-based steel giant pointed out that it has seen the first signs of recovery in the quarter. The company issued fourth-quarter EBITDA forecast, and said it expects sequential growth in shipments and average steel selling prices. ArcelorMittal also projects further gradual improvement through 2010, and maintained its fiscal 2010 base dividend.

Third-quarter net income attributable to owners of the parent was $903 million or $0.60 per share, compared to $3.82 billion or $2.78 per share last year. In euro terms, net income was 631 million euros or 0.42 euros per share, down from 2.54 billion euros or 1.85 euros per share in the previous year.

The company said the latest quarter results included foreign exchange and other net financing gains of $106 million, as compared to costs of $380 million last year. Gains related to the fair value of derivative instruments amounted to $6 million, compared to losses of $107 million a year ago. The company also recorded a loss of $110 million in the quarter, as a result of mark-to-market adjustments on the conversion options embedded in its recently issued convertible bonds.

In the prior-year period, ArcelorMittal USA agreed to a new four-year labor contract with its union employees, which required to recognize a non-recurring expense in the quarter of approximately $1.6 billion primarily related to vested post-employment benefits.

On average, six analysts polled by Thomson Reuters expected a loss of $0.06 per share for the quarter. Analysts' estimate typically exclude one-time items.
In the preceding second quarter, the company had reported a net loss of $792 million or 581 million euros, and loss per share of $0.57 or 0.42 euros.

During the latest quarter, ArcelorMittal recorded an income tax benefit of $0.9 billion, compared to an income tax expense of $0.7 billion last year. Income before taxes and non-controlling interest was $19 million in the quarter, compared to prior year's $4.93 billion.

Sales for the third quarter of 2009 fell sharply to $16.17 billion from $35.20 billion in the comparable period, and missed four Wall Street analysts' consensus estimate of $16.30 billion. On a sequential basis, however, sales grew from $15.18 billion in the preceding second quarter.

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