By Ed Frankl 
 

ArcelorMittal on Thursday beat expectations slightly on profit and sales, but flagged potential energy-supply restrictions ahead amid turbulent inflationary pressures.

The steelmaker said net profit was $3.92 billion in the three months to the end of June, down from $4.01 billion in the same period last year.

Sales came in at $22.14 billion, up 14% on year, on higher steel selling prices, it said.

Earnings before interest, taxes, depreciation and amortization were $5.16 billion, ticking up from $5.05 billion a year earlier.

The result beat analysts' expectations of net income of $3.72 billion and Ebitda at $5.09 billion, according to consensus expectations provided by the company.

The Luxembourg-based company said inflationary pressures had escalated in the first half of 2022, and the potential for energy supply restrictions presents a clear but uncertain risk to economic activity in Europe.

It said there were downside risks at its demand forecasts presented at its 1Q results given gas-supply risks and Chinese Covid-19 related lockdowns.

Quarterly steel shipments were 14.4 million metric tons, down 6.3% from the first quarter of 2022, primarily due to the conflict in Ukraine, where ArcelorMittal has operations, the company said

ArcelorMittal also said it would acquire Brazil-based slab producer Companhia Siderurgica do Pecem for around $2.2 billion.

It added it would launch a new share-buyback program worth around $1.4 billion to be completed by the end of May 2023.

 

Write to Ed Frankl at edward.frankl@dowjones.com

 

(END) Dow Jones Newswires

July 28, 2022 01:55 ET (05:55 GMT)

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