ArcelorMittal Posts Profit In Q3; Backs Full-year EBITDA Forecast

(RTTNews) - Steel giant ArcelorMittal (MT) Friday reported profit for the third quarter, compared to loss last year, amid a considerable improvement in the company's steel business. Earnings Before Interest, Tax, Depreciation and Amortization or EBITDA, a key metric for the steel giant, also improved from last year. Further, the company reiterated its guidance for EBITDA in excess of $7.0 billion in 2014.

ArcelorMittal reported an attributable profit of $22 million or $0.01 per share, compared to a loss of $193 million or $0.12 per share last year.

EBITDA improved to $1.905 billion from $1.713 billion in the prior year. Operating income climbed to $959 million from $477 million reported last year.

Sales increased to $20.067 billion from last year's $19.643 billion, due to improved steel shipments as well as higher marketable iron ore shipments.

Own iron ore production climbed to 15.8 million metric tonnes from 14.9 million metric tonnes, while iron ore shipped at market price advanced to 10 million metric tonnes from 9.4 million metric tonnes.

Steel shipments improved to 21.5 million metric tonnes from 20.7 million metric tonnes.

In the NAFTA segment, which includes the Flat, Long and Tubular operations of USA, Canada and Mexico, sales increased to $5.645 billion from $4.973 billion. The business reported higher operating income as well as increased steel shipments.

In the Brazil segment, sales advanced to $2.707 billion from $2.531 billion, along with rise in operating income and steel shipments.

Sales in Europe were slightly down, but the business reported an operating profit, compared to a loss last year.

Lakshmi Mittal, ArcelorMittal Chairman and CEO, said, "This quarter's results show the considerable improvement in our steel business which has more than offset the fall in the iron ore price...Based on today's market conditions, I do not foresee a deterioration in our performance in the fourth quarter. As a result we are well placed to achieve full year EBITDA in excess of $7.0 billion."

The stock closed marginally higher on the NYSE on Thursday at $12.38.