By Ed Frankl 
 

ArcelorMittal said Thursday that it swung to a second-quarter profit that beat expectations as demand recovered with the lifting of pandemic-related restrictions.

The steel-and-mining company made a net profit of 4.01 billion euros ($4.75 billion) for the three months to the end of June compared with a loss of EUR559 million for the same period of last year, and a profit of EUR2.29 billion for the first quarter of 2021.

The net profit figure was well above analysts' estimates of EUR3.10 billion, polled by FactSet.

Sales nearly doubled to EUR19.34 billion as steel selling prices rose and it boosted shipments, ArcelorMittal said.

Earnings before interest, taxes, depreciation and amortization--one of the company's preferred metrics--rose to EUR5.05 billion from EUR707 million last year, in its strongest quarter since 2008, the company said.

The Luxembourg-based company raised its outlook on global apparent steel consumption growth in 2021 from 2020 to 7.5% to 8.5% compared with a previous growth estimate of 4.5% to 5.5%.

ArcelorMittal said it would increase its 2021 capital expenditure to EUR3.2 billion from EUR2.9 billion to reflect higher volumes and the company's operating plan, which has changed due to increased demand.

The company launched a new EUR2.2 billion share-buyback program, fast-tracking EUR1 billion of its 2022 capital return by the end of 2021, and returning EUR1.2 billion from the redeemed Cleveland Cliffs preference shares. ArcelorMittal completed a sale of ArcelorMittal USA to Cleveland Cliffs in December 2020.

 

Write to Ed Frankl at edward.frankl@dowjones.com

 

(END) Dow Jones Newswires

July 29, 2021 01:50 ET (05:50 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.
ArcelorMittal (EU:MT)
Historical Stock Chart
From Aug 2021 to Sep 2021 Click Here for more ArcelorMittal Charts.
ArcelorMittal (EU:MT)
Historical Stock Chart
From Sep 2020 to Sep 2021 Click Here for more ArcelorMittal Charts.