ArcelorMittal posts earnings beat as European safeguards bear fruit
ArcelorMittal's Q2 Performance and Impact of EU Safeguards
Stronger-than-Expected Core Earnings
July 30 (Reuters) - ArcelorMittal, the world's second-largest steelmaker, reported slightly stronger-than-expected core earnings on Thursday, saying its European business is gathering momentum thanks to the EU's safeguards.
The Luxembourg-based company posted second-quarter core earnings of $2.06 billion, above the $2.01 billion expected by analysts polled by LSEG.
Benefits from European Protectionist Measures
EU Carbon Levy and Import Quotas
Steelmakers have recently benefited from a protectionist push in Europe, as the EU has sought to protect local production from cheaper Asian imports with a carbon levy on high-emission imports and a recently enacted policy to halve steel import quotas from outside the bloc.
Restoring Profitability and Capacity Utilisation
The company said it believes the new safeguards will support higher domestic capacity utilisation and restore profitability, citing stronger order books across Europe.
Outlook and Production Increases
CEO's Statement on Future Shipments
"We anticipate higher shipments in both the third quarter and the second half of the year, with all segments expected to outperform first‑half volumes," CEO Aditya Mittal said in the earnings statement.
European Production Growth
Restart of Facilities in Spain and Poland
ArcelorMittal said it increased crude steel production in Europe by about 11% compared with the first quarter, primarily reflecting the restart of production facilities in Spain and a blast furnace in Poland, in response to improving demand.
(Reporting by Javi West Larrañaga in Gdansk, editing by Milla Nissi-Prussak)
