World's largest steel producer ArcelorMittal reported a net profit of $1.7 billion in the April-June quarter on account of improved steel demand.

In the year-ago period, the company had a net loss of $792 mln, ArcelorMittal said in a statement.

The company's sales increased to $21.65 billion in the second quarter ended June 30, 2010 from $15.17 billion in the year-ago period, thereby registering a growth of 43 per cent.

"The improved performance in the second quarter is in line with our expectations and reflects the continued slow and progressive recovery," ArcelorMittal Chairman and CEO Lakshmi N Mittal said.

During the quarter, overall steel shipments rose to 22.8 mln metric tons from 17 mln metric tons for the three months ended June 30, 2009.

Looking ahead, steel giant is expecting to post earnings before interest, taxes, depreciation (EBITDA) in the range of $2.1 billion to $2.5 billion in the third quarter.

During the quarter, EBITDA from Asia Africa and Commonwealth of Independent States (CIS) regions jumped 77 per cent to $483 mln and sales climbed 50 per cent to $2.56 billion.

"Sales improved primarily due to higher average steel selling prices and higher steel shipments," the company noted.

Source: Business Standard