ArcelorMittal shares are trading higher Friday, after the world’s largest steel maker reported upbeat results and a positive 2018 outlook. Demand from expansions across the US and parts of Europe helped boost exports of the company’s steel, lifting revenue and earnings in the first quarter.
By 1145 BST, ArcelorMittal shares were 2.11% higher at €30.18. The stock has been moving broadly higher for the past six weeks.
ArcelorMittal earnings details
ArcelorMittal’s Q1 earnings report showed that EBITDA was 17.3% higher than Q4 at €2.5 billion. That gain was propelled by strong sales of steel and iron ore.
Other highlights in the steel maker’s earnings include:
- Q1 net income of $1.2 billion, up from $1.0 billion in Q4 and Q1 2017.
- An 1.7% rise compared with Q4 in Q1 steel shipments which totalled 21.3 Mt. That was also 1.4% higher than Q1 2017.
- Q1 iron ore shipments rose 3.6% from a year earlier to 13.8Mt. Some 9.1Mt of those shipments were moved at market prices, marking a 5.5% rise from the same period a year earlier.
“The improvement in global steel market dynamics has continued into 2018, supporting an encouraging financial performance in the first quarter,” said ArcelorMittal chairman and CEO Lakshmi N. Mittal. “EBITDA increased 13% year-on-year to $2.5 billion, while net income improved by 19% to $1.2 billion”
Topping off an impressive earnings report, the steel maker was also upbeat on the remainder of 2018. Demand has recovered in key areas. And, Brazil has emerged from a two-year recession, which also bodes well for future demand.
“The outlook for 2018 has strengthened as the year has progressed, with the combination of growing demand and supply-side reform driving higher capacity utilisation rates and healthy steel spreads globally,” Mittal said.
“Against this improving backdrop, we continue to focus on structural improvement - through the delivery of our Action 2020 strategic plan - and investing with focus and discipline in opportunities that will drive higher future returns,” he added.