ArcelorMittal swung to 3Q net profit as sales gained

ArcelorMittal said it expects global apparent steel consumption, excluding China, to grow within its earlier 12%-13% guidance this year (Photo: Reuters) — ArcelorMittal said it expects global apparent steel consumption, excluding China, to grow within its earlier 12%-13% guidance this year **(Photo: Reuters)**

1 min read . Updated: 11 Nov 2021, 06:23 PM IST Yongchang Chin, The Wall Street Journal

ArcelorMittal swung to a third-quarter profit as sales rose, the company said Thursday

The steel-and-mining company said sales increased to $20.23 billion from $13.27 billion a year earlier. They also beat the second-quarter figure of $19.34 billion because of higher realized average steel selling prices and higher mining revenue, after the resolution of a labor strike action allowed for higher shipment volumes, the company said.

The company posted a quarterly net profit of $4.62 billion, compared with a net loss of $261 million. Earnings before interest, taxes, depreciation and amortization--one of the company’s preferred metrics--rose to $6.06 billion from $901 million.

The Luxembourg-based company said it expects global apparent steel consumption, excluding China, to grow within its earlier 12%-13% guidance this year.

However, ArcelorMittal said weakening demand in China, because of its poor real-estate sector performance, is leading the company to forecast a slight contraction in Chinese apparent steel demand in 2021.

Lower Chinese domestic steel production should limit any impact on the ex-China steel market because the country is expected to reduce net exports in the second half of the year compared with the first half, ArcelorMittal said.

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