ArcelorMittal: consensus beaten, but cautious tone maintained
(CercleFinance.com) - ArcelorMittal, the world's number one steelmaker, reported higher-than-expected Q2 operating profit on Thursday, while remaining cautious about demand trends.
This morning, the steelmaker reported Ebitda of $1.86bn, down 4%, for the past quarter, whereas analysts were expecting an average of $1.77bn, according to a consensus provided by the group.
Sales remained stable at $16.2bn.
In a press release, the company explains that these results reflect a sluggish economic environment, resulting in a "wait and see" approach from clients, who are not looking to replenish their inventories.
However, the company believes that these market conditions are not likely to persist, and expects demand to improve in H2 2024 compared with the same period a year earlier.
ArcelorMittal therefore remains optimistic that a restocking process will materialize once real demand recovers.
ArcelorMittal anticipates positive free cash flow for 2024 and subsequent years, and expects Ebitda to "structurally increase" in the future.
ArcelorMittal's share price fell by more than 2% on Thursday morning following these disappointing results.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
This morning, the steelmaker reported Ebitda of $1.86bn, down 4%, for the past quarter, whereas analysts were expecting an average of $1.77bn, according to a consensus provided by the group.
Sales remained stable at $16.2bn.
In a press release, the company explains that these results reflect a sluggish economic environment, resulting in a "wait and see" approach from clients, who are not looking to replenish their inventories.
However, the company believes that these market conditions are not likely to persist, and expects demand to improve in H2 2024 compared with the same period a year earlier.
ArcelorMittal therefore remains optimistic that a restocking process will materialize once real demand recovers.
ArcelorMittal anticipates positive free cash flow for 2024 and subsequent years, and expects Ebitda to "structurally increase" in the future.
ArcelorMittal's share price fell by more than 2% on Thursday morning following these disappointing results.
Copyright (c) 2024 CercleFinance.com. All rights reserved.