ArcelorMittal beats earnings forecasts as EU steel measures bear fruit

April 30 (Reuters) - ArcelorMittal, ‌the world's ​second ​largest steelmaker, reported stronger-than-expected core earnings on Thursday, helped by higher steel prices ‌and improved performance in its North America ⁠business.

The Luxembourg-based company posted first-quarter core earnings of $1.68 billion, ‌beating analysts' average estimate ‌of $1.65 billion, according to data compiled by LSEG.

"The fundamentals of the business have improved over ​the past three months, driven in particular by the favourable structural reset in the ⁠European policy environment," CEO Aditya Mittal said in the earnings statement.

After ​years of low prices, the European Commission's levy on high-carbon goods and a new ​trade policy to halve ‌imports into the bloc - set to come into place from July - are among ⁠the factors that have pushed prices of European hot rolled coil about 22% higher in the ⁠past six months.

Lower imports will lead to higher capacity utilization, ​restoring profitability and returns on capital to healthy, sustainable levels, ArcelorMittal said.

Though demand is still below 2022 levels, ‌the sector is set for a recovery as steel prices in the European ‌Union have increased faster than expected in ⁠recent months, thanks to ‌the EU's safeguards ​and higher energy prices.

(Reporting by Javi West Larrañaga in Gdansk, editing by Milla ‌Nissi-Prussak)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Is the global equity rally broadening? UBS weighs in
• Investing.com’s stocks of the week
• Morgan Stanley course-corrects their semiconductor equipment outlook on demand