Luxembourg-based steelmaker ArcelorMittal, the world’s second-largest, on Thursday posted higher-than-expected earnings thanks to rising prices but warned that it sees risks in inflation, the ongoing war in Ukraine and the effects of the Covid-19 pandemic in China.
The company posted EBITDA earnings of 5.16 billion dollars in the second quarter, up from 5.05 billion in the period a year earlier. Analysts polled by Reuters had expected earnings of 5.09 billion.
CEO Aditya Mittal noted that it was the fifth consecutive quarter that the company reported earnings in excess of 5 billion dollars. Although this helps the company to progress against its strategic objectives, he said the period was overshadowed by the war in Ukraine, where ArcelorMittal has steel and mining operations.
‘Weakening of demand’
Looking ahead, the company did not provide an outlook but described a number of risks.
“Globally the conflict is impacting growth and adding further inflationary pressure, which is spilling over into weakening of demand,” Mittal said. “Despite the more uncertain global macro outlook, our business is well positioned to effectively manage through the cycle.”
First-quarter sales amounted to 22.14 billion euro, up from 19.34 billion in the same period a year earlier. Operating income was stable at 4.49 billion, compared to 4.43 billion in the second quarter last year, the company said in its earnings statement.
ArcelorMittal shares rose following its earnings announcement. In mid-morning trading in Euronext Amsterdam, it traded at 23.925 euro, up 5.4 percent from the close on Wednesday.