By Nathan Allen
ArcelorMittal (MT.AE) said Thursday that its first-quarter earnings slumped as global steel prices continue to fall.
First-quarter net profit dropped to $414 million from $1.19 billion a year earlier, while sales were almost flat at $19.19 billion, the company said.
Earnings before interest, taxes, depreciation and amortization fell to $1.65 billion from $2.51 billion, missing a consensus estimate of $1.68 billion provided by the company.
"Profitability has been impacted by lower steel pricing due to weaker economic activity and continued global overcapacity, as well as rising raw material costs as a result of supply-side developments in Brazil," Chief Executive Lakshmi Mittal said.
ArcelorMittal recently said it plans to temporarily cut production in Europe in an effort to mitigate the effects of rising imports, and high energy and carbon costs.
The company reaffirmed its commitment to maintaining an investment-grade credit rating and adjusted its target to reduce net debt to below $7 billion from a previous target of below $6 billion to reflect the impact of the IFRS accounting standards.
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