ArcelorMittal raises net income from previous quarter

Steelmaker’s $1.86 billion net income for the second quarter represents a 70 percent rise compared with the year’s first quarter.

arcelormittal steel sunlight

Photo courtesy of ArcelorMittal

Luxembourg-based steelmaking and mining firm ArcelorMittal, which also operates several scrap yards in Europe, has reported a 69.6 percent rise in its net income in this year’s second quarter compared with the first quarter of this year.

The company's steel shipments declined slightly in the second quarter compared with the previous quarter, but both its net income and its earnings before interest, taxes, depreciation and amortization (EBITDA) margins have been protected.

While the sequential income rise is good, the firm’s $1.86 billion net income is down by 52.6 percent compared with the $3.9 billion earned in a highly profitable second quarter of 2022.

In terms of steel shipments, the company’s results have been steadier. In this year’s second quarter, ArcelorMittal shipped 14.2 million metric tons of steel, down about 2.1 percent from the 14.5 million tons shipped the prior quarter and down just 1.4 percent from the 14.5 million metric tons shipped one year ago.

“We have delivered a strong set of financials in the first half of the year, which reflect the improved market conditions and also the positive impact of recent strategic acquisition,” ArcelorMittal CEO Aditya Mittal says.

ArcelorMittal Pecém in Brazil and ArcelorMittal Texas HBI [hot briquetted iron] in the United States are making a valuable contribution, generating above expected EBITDA.”

In moves likely to involve ferrous scrap consumption, Mittal says, “We are making further strategic progress on our decarbonization agenda. Encouragingly, we have now received funding approval from the European Commission for our transformation projects in Belgium, Spain and France. This is an important milestone, and we are now engaged in discussions with governments on the cost and availability of the clean energy needed to make these projects viable.”

Also on the recycling front, ArcelorMittal says its XCarb recycled-content and renewable-energy-produced steel product is "gaining momentum" and will be produced by ArcelorMittal North America to supply General Motors.

In presentation slides covering its half-year report, ArcelorMittal also indicated its electric arc furnace (EAF) melt shop being built in partnership with Nippon Steel Corp. in Calvert, Alabama, has a scheduled completion date in the second half of 2024. That represents a delay from its original announcement, which predicted project completion in the first half of this year,

“Looking ahead, the company is in a good position and focused on delivering further strategic progress in the second half," Mittal says.

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