ArcelorMittal, the world’s largest steelmaker, capitalized on the ongoing economic recovery from the COVID-19 pandemic, posting its highest quarterly profit in 13 years, beating expectations and announcing a new share buyback.
The Luxembourg-based company also said Thursday that it raised its forecast for global steel consumption growth this year to 7.5-8.5% from 4.5-5.5% earlier.
ArcelorMittal reported that second-quarter operating profit (EBITDA), the metric most monitored by market participants, was $ 5.1 billion, nearly seven times the $ 700 million a year earlier and above the analyst average for $ 4.7 billion according to a company poll.
The company said it will begin a $ 2.2 billion buyback program that will be completed by the end of 2021.
He said he benefited from strong steel demand and low inventories, which led to an increase in steel supply, although improved steel spreads have not yet fully reflected in the group’s results due to backlog delays.
He added that the current policy changes in China to curb inflation and the emphasis on decarbonization could have long-term positive implications for the global steel industry outside of China.
The company has also set a goal to cut carbon emissions by 25% by 2030 in a new decarbonisation plan that will require about $ 10 billion in investment.