By Ed Frankl
ArcelorMittal said first-quarter earnings and sales rose as higher steel prices overcame a decline in shipments due to the war in Ukraine.
Europe's largest steelmaker said Thursday that net profit was $4.13 billion in the three months to the end of March, up from $2.29 billion in the same period last year.
Sales came in at $21.84 billion, up from $16.19 billion last year, on higher steel prices, despite a decline in shipments versus the fourth quarter of 2021.
Earnings before interest, taxes, depreciation and amortization were $5.08 billion, up from $3.24 billion a year earlier, and close to the $5.05 billion posted in the fourth quarter.
Analysts had anticipated Ebitda at $4.57 billion, according to consensus expectations provided by the company.
Quarterly steel shipments were 15.3 million metric tons, down 2.7% from 4Q 2021 reflecting the impact of the war in Ukraine, offset in part by improved Nafta shipments, the company said
The company said it has slowly restarted operations in Ukraine and is currently operating one of three blast furnaces at its large Kryvyi Rih site.
The company now expects steel consumption to contract slightly this year having previously expected it to rise.
"Nevertheless, it is clear that the longer-term fundamental outlook for steel is positive" Chief Executive Aditya Mittal said.
ArcelorMittal also launched a second $1 billion share buyback, bringing the total buybacks for 2022 announced so far to $2 billion.
Write to Ed Frankl at email@example.com
(END) Dow Jones Newswires
May 05, 2022 01:56 ET (05:56 GMT)Copyright (c) 2022 Dow Jones & Company, Inc.