ArcelorMittal Q2 earnings higher than expected
ArcelorMittal announced its second quarter 2021 earnings were higher than expected.
The world’s largest steelmaker also said it is planning to start a new $2.2billion share buy-back program.
The company said second-quarter core profit (EBITDA) was $5.1billion almost seven times higher than the year-ago figure of $0.7billion and higher than the forecast in a company poll of $4.67billion.
Second quarter operating income was $4.4billion compared to $2.6billion in Q1 2021.
Net income also rose to $4billion from $2.3billion, making a net income of $6.2billion in the first half of 2021 – ArcelorMittal’s strongest half year performance since 2008.
Aditya Mittal, ArcelorMittal CEO, said: “In addition to our half year results, we have today also published our second group Climate Action Report, which sets out our intent to be at the forefront of the transition to net zero in our sector.
“This intent is reflected in the new targets announced in the report – a new group-wide target of a 25% reduction in carbon emissions by 2030, and an increase in the target for our European business, to 35% by 2030.
“These targets are the most ambitious in our sector and build on the progress we have already made this year.
“In recent weeks we announced plans for ArcelorMittal to have the world’s first full-scale zero carbon-emissions steel plant.
“Earlier this year we launched XCarb, our new brand for all low-carbon initiatives including green steel certificates, low carbon products, and the XCarb innovation fund which is investing in new technologies associated with the decarbonisation of the steel industry.
“To achieve net zero by 2050, accelerating progress in the next decade is vital and ArcelorMittal is committed to seeing how we can move faster, working collaboratively with stakeholders in the regions we operate.
“On the financial side, the second quarter has seen a continued strong recovery backdrop alongside a sustained lean inventory environment.
“This resulted in even healthier spreads in our core markets than in the first three months of the year, supporting the best quarterly and half year result we have reported since 2008.
“This has enabled us to further improve our balance sheet and deliver on our commitment to return cash to shareholders.
“Our performance is clearly very welcome after the unprecedented disruption the business and our people faced in 2020.
“I would like to thank all our employees again for the way in which they managed this volatility and have been able to quickly bring production back online to maximise the opportunity from the current extraordinary market conditions.
“Looking forward, we see the demand outlook further improving into the second half and have therefore upgraded our steel consumption forecasts for the year.”
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