LONDON--Steel titan ArcelorMittal on Friday reported its second
consecutively quarterly profit due to a broadly stronger
performance from its steel business that more than offset the
negative impact of a falling iron ore price on its mining business
in the third quarter.
It also reaffirmed its full-year profit guidance.
ArcelorMittal, the world's largest steelmaker by shipments,
swung to a net profit of $22 million in the third quarter compared
with a net loss of $193 million in the same period a year earlier,
but fell 58% from $52 million in the second quarter.
Revenue rose 2.2% on the year to $20.1 billion while earnings
before interest, taxes, depreciation and amortization or Ebitda,
rose 11% to $1.91 billion in the third quarter compared with the
same period a year before. This beat analysts' expectations of
$1.81 billion based on a FactSet poll of 12 analysts.
The group reaffirmed that its full-year Ebitda will exceed $7
billion since the negative impact of the declining iron ore price
on its mining division's profitability is being offset by an
improvement in the steel business.
"Europe has delivered another strong quarter, reflecting
improved market conditions and the benefits of the optimization
efforts," the company's Chief Executive Lakshmi Mittal said. He
noted that the turnaround of the company's operations at its Asia,
Common Wealth of Independent States and South African division is
evident while its North American business has recovered after a
disappointing first half of the year.
"Based on today's market conditions, I do not foresee a
deterioration in our performance in the fourth quarter," he
added.
Write to Alex MacDonald at alex.macdonald@wsj.com.
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