NEW YORK: ArcelorMittal, the world’s largest steel maker, reported a bigger than expected jump in profit as booming US steel demand outweighed a slump in iron-ore prices.
ArcelorMittal raised its forecast for US demand this year after profits at its North American business more than doubled from the prior three months. The company said it expected US consumption to grow as much as 8.75 percent this year, compared with an earlier forecast of about 5 percent.
ArcelorMittal is counting on economic recovery in the U Sto counter a collapse in iron-ore prices that have crimped profits at its mining unit. “This quarter’s results show the considerable improvement in our steel business, which has more than offset the fall in the iron-ore price,” Chief Executive Officer Lakshmi Mittal said.
Earnings before interest, taxes, depreciation and amortization climbed to $1.91bn in the three months ended September 30 from $1.71b a year earlier, the Luxembourg-based company said.
The company reported net income of $22m for the period compared with a loss of $193m a year earlier. ArcelorMittal maintained its full-year Ebitda target of “in excess” of $7bn.
While demand in the US booms, ArcelorMittal lowered its forecast for global demand growth this year to 2.25 percent to 2.75 percent from as much as 3 percent on slower than expected growth in Europe, China and Brazil.
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