By Pierre Bertrand


ArcelorMittal reported a sharp decline in second-quarter earnings after steel prices declined and lower shipments weighed.

The Luxembourg-based steelmaker said net profit for the three months to the end of June fell to $504 million from $1.86 billion a year ago, dragged by sales that fell 13% on year to $16.25 billion.

Earnings before interest taxes depreciation and amortization rose by 38% to $1.86 billion.

ArcelorMittal, which in May said customers were taking a wait-and-see approach amid subdued economic sentiment, said its performance in the second quarter was broadly similar to the first quarter's, reflecting continued subdued economic sentiment.

Average steel selling prices declined 7.5% in the first six months of the year, while steel shipments in the second quarter decreased 2% on year to 13.9 million metric tons.

ArcelorMittal said current market conditions are unsustainable. China's excess production of steel have led to lower domestic profit margins, while steel prices in both Europe and U.S. were lower than the production cost.

However, the company said it expects demand to rise on year in the second half of 2024.


Write to Pierre Bertrand at pierre.bertrand@wsj.com


(END) Dow Jones Newswires

08-01-24 0217ET