Repeat & Correct: ArcelorMittal Swung to 2Q Profit; Raises Steel Outlook

ArcelorMittal made a net profit of $4.01 billion, and a profit of $2.29 billion for the first quarter of 2021. The net profit figure was well above analysts' estimates of $3.10 billion, polled by FactSet. Sales nearly doubled to $19.34 billion. Earnings before interest, taxes, depreciation and amortization rose to $5.05 billion from $707 million last year. ArcelorMittal said it would increase its 2021 capital expenditure to $3.2 billion from $2.9 billion. The company launched a new $2.2 billion share-buyback program, fast-tracking $1 billion of its 2022 capital return by the end of 2021, and returning $1.2 billion from the redeemed Cleveland Cliffs preference shares. "ArcelorMittal Swung to 2Q Profit; Raises Steel Outlook," at 05:35 GMT, incorrectly used euros instead of dollars throughout the article, and in the earlier flashes from 05:01-05:09 GMT. The correct version follows:

 
 
   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 for the three months to the end of June compared with a loss of $559 million for the same period of last year, and a profit of $2.29 billion for the first quarter of 2021.

The net profit figure was well above analysts' estimates of $3.10 billion, polled by FactSet.

Sales nearly doubled to $19.34 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 $5.05 billion from $707 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 $3.2 billion from $2.9 billion to reflect higher volumes and the company's operating plan, which has changed due to increased demand.

The company launched a new $2.2 billion share-buyback program, fast-tracking $1 billion of its 2022 capital return by the end of 2021, and returning $1.2 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 [e-mail]

(END) Dow Jones Newswires

July 29, 2021 03:01 ET (07:01 GMT)

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