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International Steel Group to Merge with Ispat
RICHFIELD, Ohio -- International Steel Group Inc. today announced a merger agreement with Ispat InternationalN.V., a transaction that will create the largest steel company in theworld. The new company will be named Mittal Steel, ISG said. But additional details about the merger were not disclosed in today's news release, which instead focused on third-quarter earnings.IStG reported third quarter net income of $256.4 million, or $2.51 per diluted share, and net income of $421.4 million, or $4.15 per diluted share, for the nine months ended Sept. 30.The company said comparisons to 2003 are not meaningful because ISG's acquisition of Bethlehem Steel Corp.'s assets in May 2003 more than doubled the size of ISG and significantly improved its product and customer mix.Third quarter net income of $256.4 million was 172% higher than the $94.1 million in the second quarter 2004. Net sales were $2,608.3 million in the third quarter, an increase of $524.5 million, or 25%, from the second quarter. Shipments increased to 4,039,000 tons in the third quarter from 3,814,000 tons shipped in the second quarter as a result of recent acquisitions, including of Weirton Steel in May. The average sales per ton shipped increased to $646 in the third quarter 2004 from $546 in the second quarter, officials said.Operating income improved by about 163% from $129.5 million, $34 per ton shipped, in the second quarter to $340.4 million, $84 per ton shipped, in the third quarter, officials said.ISG made capital expenditures and other investments of $150.7 million during 2004, and officials anticipate making total capital expenditures for the year of about $250 million to $275 million to improve the caster at the Burns Harbor plant during the fourth quarter. Proceeds from asset sales were $16.1 million in the nine months ended Sept. 30, and an additional $11 million is expected in the fourth quarter, officials said.During the fourth quarter, at Burns Harbor, a 14-day blast furnace and a 45-day caster outage is planned to improve quality and productivity, officials reported. At Weirton, there is a planned nine-day blast furnace/caster outage as well as a 15-day maintenance outage at the hot strip mill. Shipments and prices are expected to remain about the same in the fourth quarter as in the third quarter, the company said.International Steel Group Inc. produces a variety of steel products including hot-rolled, cold-rolled and coated sheets, tin mill products, carbon and alloy plates, wire rod and rail products and semi-finished shapes to serve the automotive, construction, pipe and tube, appliance, container and machinery markets.Visit International Steel Group Inc.: www.intlsteel.com"