ArcelorMittal sees slower demand in EU
ARCELORMITTAL, the world’s largest steelmaker, yesterday forecast higher profit for the second quarter as strong US sales offset anaemic demand in Europe.
In the first quarter, the group reported core profit of $1.97bn (£1.2bn), ahead of analyst forecasts. However, it was boosted by a $241m one-off gain from employee benefit changes at its Canadian unit.
The company forecasts global steel consumption to rise by between four and 4.5 per cent this year after expanding 6.3 per cent in 2011.
The Luxembourg-based company said demand for steel from North American manufacturers of vehicles and household appliances increased in the first three months of the year. Europe, by contrast, remained a concern.
The company said net debt increased by $1.1bn to $23.6bn during the first quarter, but that it should fall below $22.5bn by the end of June due to improved cashflow, cost savings and further sales of non-core assets.