Arcelor looks to emerging markets

Chief executive Lakshmi Mittal is now also the company's chairman

The world's largest steel maker, Arcelor Mittal, is looking to emerging economies for growth as Europe and the US hit economic downturns.

It predicted record results in the coming year from Asia, Africa and the former Soviet states.

Arcelor Mittal reported net profit for the first three months of the year of $2.37bn (£1.22bn), up 5% from the same quarter in 2007.

It also announced price rises in Europe to pass on higher raw material costs.

"Despite global economic uncertainties, we are continuing to see strong demand for steel and a healthy pricing dynamic," said Lakshmi Mittal, the company's chief executive who has now also taken over as chairman.

He added that the company had achieved the $1.6bn of savings that he promised shareholders two years ago when Mittal Steel was in the process of taking over Arcelor.