ArcelorMittal reports double-digit profit growth

Luxembourg-based steel giant ArcelorMittal reported Q2 net income of US$1.32bn, up 19% compared with US$1.11bn for the same quarter last year.

Sales rose to US$17.2bn from US$14.7bn, while Ebitda jumped to US$2.11bn from US$1.77bn, the company reported Thursday in its latest earnings release.

Steel shipments were down to 21.5Mt from 22.1Mt, while crude steel output rose to 23.2Mt from 23.1Mt, the company said. Iron ore production rose 1.2Mt to 14.7Mt.

"We have materially improved our financial performance in the first half of 2017, and continue to make important progress on our Action 2020 plan," chairman and CEO Lakshmi Mittal (pictured) said.

"Looking ahead demand remains strong in our core markets supporting robust order books and healthy levels of steel spreads. However, 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. We continue to work towards achieving a comprehensive trade solution in response to unfair imports."

BRAZIL

ArcelorMittal Brasil reported operating income of US$128mn for the quarter, compared with US$149mn in 2Q16.

Steel sales rose to US$1.83bn from US$1.49bn but Ebitda was down to US$201mn from US$213mn, the company said.

Crude steel output fell to 2.71Mt from 2.80Mt, and shipments dipped to 2.62Mt from 2.69Mt.

Brazil's apparent steel consumption growth for 2017 was revised down to 2-3% from a previous estimate of 3-4%, as the continued weakness in construction is partially offset by a mild improvement in consumer confidence and automotive demand, the company said.

During the quarter, ArcelorMittal Brasil announced the acquisition of local conglomerate Votorantim's long steel businesses in Brazil.

In Latin America, ArcelorMittal – the world's largest steelmaker – also has operations in Mexico, Venezuela and Argentina.