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High steel prices drive strong quarter for ArcelorMittal
Steel

High steel prices drive strong quarter for ArcelorMittal

by John MONAGHAN 28.07.2022 From our online archive
Luxembourg-based steelmaker sees revenues rise almost 15% compared to a year earlier
ArcelorMittal, which is headquartered in Luxembourg, has seen revenues continue to rise in 2022
ArcelorMittal, which is headquartered in Luxembourg, has seen revenues continue to rise in 2022
Photo credit: AFP

High prices for steel led to a jump of almost 15% in revenue for Luxembourg-headquartered ArcelorMittal in the second quarter of this year, according to the company’s latest results published on Thursday.

A strong performance in the opening half of this year comes just months after the steelmaker – the world’s largest outside of China – posted its best annual results in more than a decade.

Revenue reached $22.1 billion (€22.7 billion) in the second quarter of this year, up 14.5% on a year earlier, reflecting continued growth despite the weakening of demand caused by the war in Ukraine and rising inflation across the globe.

The company’s earnings before interest, taxes and depreciation were up 2% in the second quarter on a year earlier, to $5.2 billion (€5.1 billion). Net debt also rose slightly, to $4.2 billion (€4.1 billion) at the end of June, from $4 billion (€3.9 billion) at the close of 2021.

The period was “overshadowed by the outbreak of war in Ukraine”, where the company has 26,000 staff, ArcelorMittal CEO Aditya Mittal said in a statement accompanying the results.

“Globally the conflict is impacting growth and adding further inflationary pressure, which is spilling over into weakening of demand,” Mittal said, adding that the business is “well positioned” to withstand the current global financial pressures.

The steelmaker also announced plans on Thursday to buy back a further 60 million shares, currently equating to around $1.4 billion (€1.37 billion). It also hopes to complete the acquisition of Brazilian steel plate manufacturer CSP, valued at $2.2 billion (€2.1 billion), by the end of this year.

ArcelorMittal’s $15 billion (€13 billion) profit in 2021 was the highest since 2008, and outstripped sustained losses recorded over four years during the last decade.


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