ArcelorMittal Profits Zoom 41% in Q2 2018, Boosted by Tariffs

SEATTLE (Scrap Monster): ArcelorMittal, the world’s biggest steelmaker, announced robust results for the quarter and half-yearly period ending June 30, 2018. The profits surged significantly during the second quarter of 2018, mainly on account of increased sales and higher price realizations due to tariffs imposed on imported steel.

The company reported net income of $1.9 billion in Q2 this year, which is notably higher by 56.4% compared with the prior quarter. The net income for the first six months of the year surged higher by 31.5% to $3.1 billion. The operating income of $3.9 billion was higher by 32.5% over the previous year. The EBITDA for Q2 and H1 totaled $3.1 billion and $5.6 billion respectively.

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ArcelorMittal reported sequentially higher steel shipments in all regions except Europe. The company attributed the drop in shipments in Europe to floods in some parts of Europe and a rail strike in France. The overall steel shipments edged higher marginally by 1.8% from Q1 ’18 to 21.8 Mt in Q2 this year. The half-yearly shipments totaled 43.1 Mt, slightly higher by 1.3% over the previous year.

Commenting on the result, Lakshmi N. Mittal, ArcelorMittal Chairman and CEO noted that the encouraging set of results reflects the revival in both the global steel industry and within ArcelorMittal. The trade actions in various countries have resulted in structural changes to global steel industry. The tariffs have played a key role in reshaping the industry. In addition, the Action 2020 five-year strategic plan too has delivered notable improvement in EBITDA and free cash flow, Mittal stated.

ArcelorMittal expects the current favorable market conditions to continue during the second half of 2018. The leadership position across key markets will enable the company to capitalize on thriving market conditions. Meantime, it noted that much more needs to be done to completely address the global steel overcapacity issue.