Steel prices have made ArcelorMittal more profitable since 2008 Finance

Compared to the previous three months, the company has delivered less steel. Traffic was delayed due to low demand from car manufacturers.

Net profit for the third quarter was $ 4.6 billion, about 4 4 billion. ArcelorMittal suffered a $ 261 million loss during the same period last year. CEO Aditya Mittal says it was a ‘very strong year’.

Bloomberg averaged $ 6.05 billion in operating income below $ 6.15 billion.

However, ArcelorMittal shares are trading at a profit of about 2% on Beursplein 5.

Sales of steel rose by more than three-quarters in a year to $ 20.3 billion, up from $ 13.3 billion in the third quarter of 2020. It was $ 4 billion last quarter, but last year it was still $ 901 million.

“Great year but worry about China”

DFT reporter Theo Bestman thinks so:

“ArcelorMittal is still concerned about its best quarter since 2008. Steel emissions in Europe have fallen by almost 9% year-on-year. The nearly 20% increase in operating profit is below the recently raised average expectations of analysts. Despite declining production in Europe and rising sales and operating profits, China’s new CEO Aditya Mittal’s problem remains with sick car manufacturers worldwide. China’s sluggish real estate sector is holding back Arcelor’s exports, while progress is uncertain.

Follow @Theobesteman On Twitter.

Despite the sharp increase in profits, the performance was lower than Bloomberg News Agency expected. Disruptions and chip shortages in global distribution chains, among other things, can lead major car brands to produce far fewer cars. ArcelorMittal therefore points out that orders in this sector were frequently canceled during the last quarter.

The steel company has engaged itself in reducing its CO2 emissions, and in practice the reduction costs for the highly polluting sector have become more expensive.

CEO Mittal talks about positive opportunities. “Basic steel demand is expected to continue to improve and steel prices will remain high, which will be reflected in the annual contracts for 2022.”

ArcelorMittal’s debt fell $ 1 billion to more than $ 8 billion and net $ 3.9 billion, the lowest level since the 2006 merger.

CEO Mittal is set to buy another $ 1 billion in his own shares.