Repeat & Correct: ArcelorMittal Swung to 2Q Profit; Raises Steel Outlook
July 29 2021 - 3:05AM
Dow Jones News
ArcelorMittal made a net profit of $4.01 billion, and a profit
of $2.29 billion for the first quarter of 2021. The net profit
figure was well above analysts' estimates of $3.10 billion, polled
by FactSet. Sales nearly doubled to $19.34 billion. Earnings before
interest, taxes, depreciation and amortization rose to $5.05
billion from $707 million last year. ArcelorMittal said it would
increase its 2021 capital expenditure to $3.2 billion from $2.9
billion. The company launched a new $2.2 billion share-buyback
program, fast-tracking $1 billion of its 2022 capital return by the
end of 2021, and returning $1.2 billion from the redeemed Cleveland
Cliffs preference shares. "ArcelorMittal Swung to 2Q Profit; Raises
Steel Outlook," at 05:35 GMT, incorrectly used euros instead of
dollars throughout the article, and in the earlier flashes from
05:01-05:09 GMT. The correct version follows:
By Ed Frankl
ArcelorMittal said Thursday that it swung to a second-quarter
profit that beat expectations as demand recovered with the lifting
of pandemic-related restrictions.
The steel-and-mining company made a net profit of $4.01 billion
for the three months to the end of June compared with a loss of
$559 million for the same period of last year, and a profit of
$2.29 billion for the first quarter of 2021.
The net profit figure was well above analysts' estimates of
$3.10 billion, polled by FactSet.
Sales nearly doubled to $19.34 billion as steel selling prices
rose and it boosted shipments, ArcelorMittal said.
Earnings before interest, taxes, depreciation and
amortization--one of the company's preferred metrics--rose to $5.05
billion from $707 million last year, in its strongest quarter since
2008, the company said.
The Luxembourg-based company raised its outlook on global
apparent steel consumption growth in 2021 from 2020 to 7.5% to 8.5%
compared with a previous growth estimate of 4.5% to 5.5%.
ArcelorMittal said it would increase its 2021 capital
expenditure to $3.2 billion from $2.9 billion to reflect higher
volumes and the company's operating plan, which has changed due to
increased demand.
The company launched a new $2.2 billion share-buyback program,
fast-tracking $1 billion of its 2022 capital return by the end of
2021, and returning $1.2 billion from the redeemed Cleveland Cliffs
preference shares. ArcelorMittal completed a sale of ArcelorMittal
USA to Cleveland Cliffs in December 2020.
Write to Ed Frankl at edward.frankl@dowjones.com
(END) Dow Jones Newswires
July 29, 2021 03:01 ET (07:01 GMT)
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