Highest profit in five years for ArcelorMittal

Highest profit in five years for ArcelorMittal

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Steel company ArcelorMittal recorded its highest profit in the first half of this year since 2012, mainly helped by the improved market conditions in the steel sector. Here are the figures from the world’s largest steel producer, published Thursday.

Operating profit (EBITDA) increased in the first six months to $4.3 billion compared with $2.7 billion a year earlier. Revenue was $33.3 billion, up from over $28 billion last year. Net profit was $2.3 billion. Arcelor has delivered 42.5 million tonnes of steel in the past six months.

For the second quarter, its core profit (EBITDA) saw an increase of 19 percent to $2.11 billion, broadly in line with the $2.14 billion predicted by analysts. This growth came on the back of its European and mining businesses, however, core profit in the United States and Brazil recorded declines versus last year.

Arcelor said that the market conditions were improving compared with a year earlier, along with a healthy question. The company believes that steel deliveries in the second half will be higher than expected during that period. Normally, the second half of the year is a bit quieter because factories close for summer holidays.

Furthermore, Arcelor believes that global steel demand will increase to 3 percent this year, while it was previously estimated to increase from 0.5 to 1.5 percent.

Topman Lakshmi Mittal also stated that the recent acquisition of the Italian steel company Ilva offers the opportunity to create value for shareholders. Ilva owns the largest steelworks in Europe in the southern Italian city of Tarente.

ArcelorMittal also sees the Chinese industry to return to growth, but said cheap imports still have a negative impact.

“It remains a matter of concern that we are not able to capture the full benefits of this demand growth due to continued high levels of imports,” Chief Executive Lakshmi Mittal said in a statement.

The results appeared to alleviate concerns among investors after comments from President Donald Trump on Tuesday pointed towards a plan to impose additional tariffs and restrictions on cheap steel imports.

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She is the Managing Editor for in-depth discussions and analysis as well as breaking news at Markets Morning. She works closely with Editor-in-Chief Zac Berry on content and publishing initiatives for the site. Brianna Clemons has worked as a financial journalist and editor since 1997. She lives in Bucks County, PA, with her husband, four young children and one dog.

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