ArcelorMittal, a global leader in steel and mining, reported a net profit of USD 1.442 bln for the first half of 2024, down from USD 2.956 bln during the same period last year.
The decline was primarily attributed to lower operating results, reduced income from equity method investments, and increased foreign exchange losses and financing costs, largely due to the USD appreciation against most currencies. This was partially offset by a decrease in net interest expense.
The company’s EBITDA dropped nearly 26pct YoY to USD 3.81 bln in H1 2024, primarily due to negative price-cost effects, reduced steel shipments, and the impact of an illegal blockade at its Mexican operations. The blockade, which began in late May, was resolved after 55 days when workers approved a new settlement that includes an 8pct pay increase and a review of the collective bargaining agreement.
Sales for H1 2024 decreased by 12.3pct to USD 32.5 bln from USD 37.1 bln in H1 2023, driven by a 7.5pct drop in average steel selling prices and lower steel shipments. Crude steel output remained nearly unchanged at 29.1 mln tons, while steel shipments fell by 4.88pct YoY to 27.3 mln tons.
ArcelorMittal CEO Aditya Mittal noted that the company’s financial performance in the second quarter was broadly similar to the first, reflecting ongoing subdued economic sentiment. Looking ahead, ArcelorMittal indicated that the overall economic sentiment remains cautious, with customers adopting a “wait and see” approach and no apparent restocking. However, with low inventory levels, particularly in Europe, the company expects apparent demand to rebound as real demand gradually improves. Despite ongoing challenges, World ex-China apparent steel consumption is projected to grow by 2.5-3pct in 2024, down from the previous guidance of 3-4pct.
