May 23, 2022

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ArcelorMittal Strong Quarterly Earnings on Rising Steel Prices

ArcelorMittal Strong Quarterly Earnings on Rising Steel Prices

A truck spins at the ArcelorMittal steel group’s plant in Olabria, Spain, on March 10, 2022. afp_tickers

This content was published on 05 May 2022 – 10:14

(AFP)

Second global steel group ArcelorMittal on Thursday reported a significant increase in profit in the first quarter of its fiscal year 2022, thanks to higher steel prices and despite the impact of the war in Ukraine.

Net profit this quarter grew more than 80% compared to the same period in 2021, to $4.12 billion. The group said quarterly revenue increased more than 34% to $21.83 billion.

Those results came in higher than expectations of analysts consulted by Facttest, who cited revenue of $2,018 million and net profit of $3,350 million.

He added that ArcelorMittal halted its operations in Ukraine at the start of the war in late February, but “since then we have slowly resumed operations and are currently operating one of three Ukrainian formations” in the group.

The statement quoted Group General Manager Aditya Mittal as saying that despite the context “which was exacerbated by the increase in inflationary pressures in the world, Arcelor Mittal delivered a strong performance in the first quarter”.

Steel production decreased by about 7% compared to the first quarter of 2021 to 16.3 million tons, as well as iron ore production by about 10% to 12 megatons.

But this drop in production was offset by a sharp rise in prices due to strong global demand.

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