(CercleFinance.com) – ArcelorMittal reported on Thursday a much better than expected first quarter thanks to a recovery in volumes and a strengthening of its selling prices.
Over the first three months of the year, the steelmaker posted earnings before interest, taxes, depreciation and amortization (Ebitda) – the indicator most followed by investors – of $1.96 billion, up 34% compared to in the previous quarter.
This performance is well above the average consensus forecast provided by the group itself, which stood at $1.81 billion.
At $938 million, quarterly net profit also exceeded analysts’ estimates, which averaged $733 million.
In a press release, the steel giant indicates that its turnover increased by almost 12% from one quarter to the next, to 16.3 billion dollars, thanks to both an increase in its price average sales (+4.8%) and growth in volume deliveries (+1.4%)
Its managing director, Aditya Mittal, said he expected an increase of 3% to 4% in steel demand this year, excluding China, and judged that his group was ‘well positioned to benefit from this improvement’.
The only downside is that net debt – an element closely followed by the market – increased to $4.78 billion at the end of March, compared to $2.90 billion at the end of 2023, against a backdrop of increased investment spending and enhanced returns to shareholders.
On the Paris Stock Exchange, ArcelorMittal shares gained 0.8% on Thursday in early trading following this publication which came out above expectations.
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