PARIS, May 11: Top global steelmaker ArcelorMittal said on Wednesday its first quarter net profit rebounded to $1.07 billion following a setback at the end of last year due to exceptional items.

The company, by far the biggest steelmaker by volume, said it expected profitability to improve further in the second quarter due to increased seasonal factors and increased underlying demand.

The group reported a loss for the last quarter of 2010 because of costs arising from the sale of its stainless steel division.

In the comparable first quarter of last year it made a net profit of $640 million.

“As anticipated, we have seen a stronger start to the year, with an increase in both shipments and selling prices,” chief executive Lakshmi Mittal said in a statement.

First quarter sales rose by 27.3 per cent on a 12-month basis to $22.2 billion.

It made a gross operating profit of $2.6 billion, marking an increase of 52pc. This was slightly higher than its forecast range of $2.0-$2.5 billion.

The outcome included the recovery of $300 million in the form of unused provisions. Net debt rose by $2.9bn to $22.6bn in the first quarter due to investment in working capital, mergers and acquisition and foreign currency operations.

Sales and prices are “expected to further improve in the second quarter as the underlying demand recovery continues,” added Mittal.

The company now expects gross operating profit to come in at between $3.0 and $3.5 billion in the quarter.

Capacity utilisation is expected to rise to approximately 80 per cent from 75 per cent.—AFP