By Pierre Bertrand
ArcelorMittal, the Luxembourg-based steelmaker, announced a decrease in second-quarter earnings due to a decline in steel shipments and lower average steel selling prices. The company reported $1.86 billion in net profit for the quarter, a significant decrease from the prior year’s $3.92 billion, with revenue falling by 16% to $18.61 billion.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) amounted to $2.60 billion, a 49% decrease compared to the previous year. Analysts had predicted a net profit of $1.45 billion and an EBITDA of $2.49 billion for the quarter.
ArcelorMittal attributed the decrease in sales to lower steel shipment volumes and a 16% drop in average steel selling prices compared to the prior year. The company shipped 14.2 million metric tons of steel in the quarter, slightly fewer than the 14.5 million tons in the first quarter of the year. Crude steel production reached 14.7 million tons, up from 14.5 million tons in the first quarter.
Compared to the same period last year, steel shipments fell by 1.2%, according to the company.