Paris (France) (AFP) – Steel giant ArcelorMittal said Thursday that while first-quarter sales had risen, adverse exchange rates hit net profits, but added that it was well placed to benefit from European restrictions on imports.
Sales rose 4.4 percent to $15.4 billion. Net profits slid 28.6 percent to $575 million, mostly due to an $80 million hit from changes in exchange rates. The figures were largely better than analyst expectations compiled by financial data provider FactSet. Net profit more than tripled from the final quarter of last year, which the company attributed to EU measures on steel.
“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,” chief executive Aditya Mittal said in a statement. He pointed to EU measures that impose a carbon tax on imports in an attempt to encourage green production, as well as a new EU tariff rate quota “expected to significantly reduce imports into Europe from July 1.”
Mittal stated, “ArcelorMittal is well positioned to capture this upside through existing capacity and by re-starting idled capacity.” The group announced in February it was proceeding with the construction of its largest electric steel furnace in Europe.
“We remain confident in ArcelorMittal’s prospects for the balance of the year, with the expected favourable impacts of new policy including a materially improved pricing and volume environment, more than offsetting any anticipated impacts from the Iran conflict,” said Mittal.
© 2024 AFP
