ArcelorMittal Tops Expectations in 2Q Despite Inflationary Pressures
July 28 2022 - 2:10AM
Dow Jones News
By Ed Frankl
ArcelorMittal on Thursday beat expectations slightly on profit
and sales, but flagged potential energy-supply restrictions ahead
amid turbulent inflationary pressures.
The steelmaker said net profit was $3.92 billion in the three
months to the end of June, down from $4.01 billion in the same
period last year.
Sales came in at $22.14 billion, up 14% on year, on higher steel
selling prices, it said.
Earnings before interest, taxes, depreciation and amortization
were $5.16 billion, ticking up from $5.05 billion a year
earlier.
The result beat analysts' expectations of net income of $3.72
billion and Ebitda at $5.09 billion, according to consensus
expectations provided by the company.
The Luxembourg-based company said inflationary pressures had
escalated in the first half of 2022, and the potential for energy
supply restrictions presents a clear but uncertain risk to economic
activity in Europe.
It said there were downside risks at its demand forecasts
presented at its 1Q results given gas-supply risks and Chinese
Covid-19 related lockdowns.
Quarterly steel shipments were 14.4 million metric tons, down
6.3% from the first quarter of 2022, primarily due to the conflict
in Ukraine, where ArcelorMittal has operations, the company
said
ArcelorMittal also said it would acquire Brazil-based slab
producer Companhia Siderurgica do Pecem for around $2.2
billion.
It added it would launch a new share-buyback program worth
around $1.4 billion to be completed by the end of May 2023.
Write to Ed Frankl at edward.frankl@dowjones.com
(END) Dow Jones Newswires
July 28, 2022 01:55 ET (05:55 GMT)
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