By Yongchang Chin
ArcelorMittal swung to a third-quarter profit as sales rose, the company said Thursday.
The steel-and-mining company said sales increased to $20.23 billion from $13.27 billion a year earlier. They also beat the second-quarter figure of $19.34 billion because of higher realized average steel selling prices and higher mining revenue, after the resolution of a labor strike action allowed for higher shipment volumes, the company said.
The company posted a quarterly net profit of $4.62 billion, compared with a net loss of $261 million. Earnings before interest, taxes, depreciation and amortization--one of the company's preferred metrics--rose to $6.06 billion from $901 million.
The Luxembourg-based company said it expects global apparent steel consumption, excluding China, to grow within its earlier 12%-13% guidance this year.
However, ArcelorMittal said weakening demand in China, because of its poor real-estate sector performance, is leading the company to forecast a slight contraction in Chinese apparent steel demand in 2021.
Lower Chinese domestic steel production should limit any impact on the ex-China steel market because the country is expected to reduce net exports in the second half of the year compared with the first half, ArcelorMittal said.
Write to Yongchang Chin at email@example.com
(END) Dow Jones Newswires