By Ed Frankl
ArcelorMittal on Thursday beat expectations slightly on profit and sales, but flagged potential energy-supply restrictions ahead amid turbulent inflationary pressures.
The steelmaker said net profit was $3.92 billion in the three months to the end of June, down from $4.01 billion in the same period last year.
Sales came in at $22.14 billion, up 14% on year, on higher steel selling prices, it said.
Earnings before interest, taxes, depreciation and amortization were $5.16 billion, ticking up from $5.05 billion a year earlier.
The result beat analysts' expectations of net income of $3.72 billion and Ebitda at $5.09 billion, according to consensus expectations provided by the company.
The Luxembourg-based company said inflationary pressures had escalated in the first half of 2022, and the potential for energy supply restrictions presents a clear but uncertain risk to economic activity in Europe.
It said there were downside risks at its demand forecasts presented at its 1Q results given gas-supply risks and Chinese Covid-19 related lockdowns.
Quarterly steel shipments were 14.4 million metric tons, down 6.3% from the first quarter of 2022, primarily due to the conflict in Ukraine, where ArcelorMittal has operations, the company said
ArcelorMittal also said it would acquire Brazil-based slab producer Companhia Siderurgica do Pecem for around $2.2 billion.
It added it would launch a new share-buyback program worth around $1.4 billion to be completed by the end of May 2023.
Write to Ed Frankl at edward.frankl@dowjones.com
(END) Dow Jones Newswires
07-28-22 0155ET