ArcelorMittal (MT), the world's largest steelmaker, Wednesday reported a 22% rise in second quarter earnings before interest, taxes, depreciation and amortization or Ebitda that was better-than expected due to higher achieved prices.

The steel titan, however, said it expects its third quarter Ebitda to fall to around $2.4 billion to $2.8 billion due to seasonal factors such as summer holidays in the northern hemisphere which typically lead to lower demand.

"As expected the company has delivered a strong performance in the second quarter of 2011 underpinned by higher steel selling prices," Lakshmi Mittal, Chairman and CEO of ArcelorMittal said in a statement.

"Although the third quarter will experience some seasonal impact, we do not expect this to be as pronounced as last year, and overall the group's performance in the second half of 2011 should compare favorably with the second half of 2010," he added.

ArcelorMittal accounted for about 7% of the world's steel production in 2010 and produced more than double the amount of steel of its closest rival.

MAIN FACTS:

- Second quarter sales up 25% on year at $25.13 billion, beating analyst expectations of $24.42 billion based on a Dow Jones Newswires poll of 5 analysts.

- Second quarter Ebitda up 22% on year at $3.41 billion, beating analyst expectations of $3.27 billion and in line with company guidance of $3 billion to $3.5 billion.

- Second quarter net profit down 10% at $1.54 billion, beating analyst expectations of $1.40 billion. Net profit fell partly due to tax expenses.

- Second quarter Ebitda per ton rose 22% on year to $154/ton even though steel shipments were essentially flat on year at 22.2 million tons.

- Second quarter iron ore production was 13.1 million tons, up 2.4% on year. 7 million tons of the total was shipped at market price.

- Third quarter Ebitda forecast in line with third quarter guidance of $2.61 billion.

- Net debt at the end of the second quarter was up $2.4 billion to $25 billion due primarily to investment in working capital.

- ArcelorMittal's shares closed Tuesday down EUR0.65 or 2.8% at EUR22.18 a share.

-By Alex MacDonald, Dow Jones Newswires; +44 (0)20 7842 9328; alex.macdonald@dowjones.com

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