ArcelorMittal reports 77% jump in income on shipments, prices
The company maintained its forecast for the growth in global apparent steel consumption this year of 2.5% to 3% with "the balance of risks now with upside potential."
Luxembourg-based ArcelorMittal, the world's biggest steelmaker, reported a 77% increase in third-quarter net income, supported by higher shipments and prices of the commodity and said market conditions remain "favourable."
Net income attributable to equity holders of the parent company was $1.2 billion (€1 billion) in the three months to end-September, the company said in a statement. That's compared with $680 million in the same period of 2016.
"The demand environment remains positive," ArcelorMittal said. "Steel spreads remain healthy."
"Given the improved market conditions, the company now expects a full year 2017 investment in working capital of approximately $2.0 billion (as compared to previous guidance of approximately $1.5 billion)."
The company maintained its forecast for the growth in global apparent steel consumption this year of 2.5% to 3% with "the balance of risks now with upside potential." It shipped 21.7 million tonnes of the material in the third quarter, a 6.8% year-on-year increase.
Its shipments for the whole second half of 2017 are expected to be "similar or higher" than in the first six months, it said.
The European Commission said on Thursday it is conducting an in-depth investigation into ArcelorMittal's planned takeover of Italian steelmaker Ilva over concerns it could push up prices for the commodity.
ArcelorMittal said in June it had agreed to buy Ilva in partnership with Italian peer Marcegaglia and Bank Intesa. The Commission was notified of the deal in September. Commitments made by ArcelorMittal at a preliminary enquiry were "insufficient," the Commission said.
ArcelorMittal repeated that it "will continue to work closely and constructively with the European Commission to explain the dynamics of the steel industry, the rationale of the proposed acquisition and the benefits it will bring to industry, customers, the environment and the local economy."
"The company looks forward to ongoing dialogue with the Commission to secure approval for this transaction in a timely manner," it said.
Shares in ArcelorMittal rose 2.2% to €24.99 as of 10.16 am in Amsterdam.
(€1=$1.16)
(Alistair Holloway, alistair.holloway@wort.lu, +352 49 93 39)
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