Paris (AFP) – The world’s number two steelmaker, ArcelorMittal, said on Thursday its half-year net profit jumped on exceptional items but US tariffs began to eat into its margin. Net profit for the period from January through June rose 39 percent from the same period in 2024 to hit $2.6 billion, thanks to a $1.7 billion exceptional gain from acquiring a stake in a US unit ceded by Nippon Steel. But operating earnings that strip out interest costs, depreciation and taxes, slid by 10 percent to $3.4 billion, notably due to US tariffs on steel imports.
US President Donald Trump doubled tariffs on steel and aluminium to 50 percent at the beginning of June, including on its neighbour Canada which is the largest foreign supplier to the United States, as well as Mexico. ArcelorMittal says its global footprint—producing steel in 15 countries and serving customers in 129—enables it to benefit from high-growth markets such as India and Brazil. However, the introduction of US steel tariffs complicates ArcelorMittal’s operations in North America, where it has factories in Canada, Mexico and the United States.
First half sales slid 5.5 percent to $30.7 billion, attributing that to a 7.5 percent drop in average steel prices. “The underlying strength of the business is good, but like every company we must navigate the backdrop of ongoing geopolitical and tariff disruptions,” chief executive Aditya Mittal said in a statement. “Despite the many challenges facing global business today, I am confident that ArcelorMittal has a profile that will enable us to continue to grow and thrive,” he added.
Mittal said gaining full ownership in Calvert by acquiring the stake from Nippon Steel strengthens its capabilities to produce high-quality steel products for a range of customers, including the automotive industry. He urged the European Union to detail the measures it plans to take to protect its market from a flood of cheap Chinese steel imports. “It remains a crucial year for European steelmaking, and I sincerely hope that Europe will hold good onto its commitment to defend and prioritize its domestic steel industry,” said Mittal.
He added that the trend in Europe to boost government spending on defence and infrastructure was positive for the steel industry. ArcelorMittal’s shares slumped 3.9 percent in Paris where the CAC 40 index was up 0.4 percent.
© 2024 AFP
