Steel giant Arcelor SA posted better-than-expected third quarter profits of ¤629 million (US$815 million) Monday, a six-fold jump over a year ago, but warned the boom may lose steam in 2005. Sales rose almost 22 percent to ¤7.2 billion (US$9.3 billion), the Luxembourg-based producer said. It credited a strong performance by its long products _ or beams and girders _ division, cost savings and productivity gains for its strong third-quarter showing. Analysts surveyed by Dow Jones Newswires had expected a quintupling of profits at Arcelor, which was created in early 2002 through the merger of Usinor SA of France, Arbed SA of Luxembourg and Aceralia Corp. Siderurgica SA of Spain. "The results are good, in particular in long products," said Enego Recio Pascual, an analyst at Caja Madrid Bolsa. Arcelor shares were trading up almost 1 percent at ¤16.25 (US$21.06) on Euronext Paris in morning trading. Arcelor chief executive Guy Dolle said profits in the fourth quarter will at least be at the same level as in the third quarter, as world steel consumption continues to grow. But he warned it will grow by much less next year. "A slowdown could come in the second half depending on economy and inventories," he said in a telephone interview with Dow Jones Newswires. --more 1254 Local Time 0954 GMT
