ArcelorMittal stays confident with £5bn
ArcelorMittal, the world’s biggest steel group, predicted resilience in the steel industry this year as the company reported a 30 per cent increase in profits for last year at $10.4billion (£5.3billion). “Despite the potential recession in the US, the steel industry has been able to differentiate itself,” Lakshmi Mittal, its chief executive, said. Analysts said that ArcelorMittal should be able to benefit from lower export levels from China, modest European inventory levels and robust prices in the United States. The group is to return $3.1billion to shareholders this year, with $2.1billion in dividends and $1billion in share buybacks. (Christine Buckley)
ABB chief departs
ABB, the Swiss engineering group, blamed “irreconcilable differences” for the sudden departure of Fred Kindle, its chief executive. There was speculation that he might have clashed with Hubertus von Gr?nberg, the chairman, over mergers and acquisitions strategy, but Mr von Gr?nberg denied any split. (Christine Buckley)
Delphi doubt
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A plan by Delphi Corporation, the car parts supplier, to leave bankruptcy by the end of March is in doubt as it struggles to raise $6.1billion (£3.1billion). If the company, formerly owned by GM and one of its biggest suppliers, does not secure exit financing by the end of March, equity investors could abandon a $2.55billion financing. (AP)
UBS names head
UBS, the Swiss bank, has named Jerker Johansson, 51, as head of its investment bank, placing a little-known banker at the helm of the unit that caused billions of dollars of writedowns on sub-prime assets. Mr Johansson joins UBS from Morgan Stanley, where he was vice-chairman for Europe, and will begin on March 17, UBS said. (Reuters)
Oil growth to slow
The International Energy Agency (IEA) cut its forecast for growth in world oil demand this year because of the economic slowdown in America. The IEA forecast in its monthly Oil Market Report that global demand growth would average 1.67 million barrels per day (bpd), down 310,000 bpd from its previous estimate. (Reuters)
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Russian lender close to deal with Barclays
Expobank, the Russian lender, is close to being bought by Barclays for under 10 billion roubles (£207 million), the daily Russian newspaper Vedomosti said yesterday. It is thought that the British bank is seeking a controlling stake with the option of taking full ownership as it moves in on Russia’s fledgeling mortgage market. If successful, the aquisition would mark the first significant international step by Barclays since it failed to buy ABN Amro, the Dutch lender, last year. Founded in 1993, Expobank had total assets of 29.7 billion roubles as of January 1. (Susan Thompson)
Steel group profits up
ArcelorMittal, the world’s biggest steel group, predicted resilience in the steel industry this year as the company reported a 30 per cent increase in profits for last year at $10.4 billion (£5.3 billion). The group is to return $3.1 billion to shareholders this year, with $2.1 billion in dividends and $1 billion in share buybacks. (Christine Buckley)