Steel producer ArcelorMittal increased its net profit to $ 4.6 billion (CZK 101 billion) in the third quarter, compared to a loss of $ 261 million a year ago. This is the highest profit since 2008. The economy was mainly supported by rising steel prices, the company said in its results report today .
Earnings before interest, taxes, depreciation and amortization (EBITDA) increased approximately sixfold to $ 6.06 billion in the quarter, the most since 2008. Compared to the previous quarter, profit increased 19.9 percent. However, EBITDA fell short of analysts’ estimates of an average of $ 6.15 billion. Revenue increased 52 percent to $ 20.23 billion.
The company expects global demand for steel to increase by 12 to 13 percent this year. The exception is China, where real demand has fallen and where the company expects a slight decline for the whole year, mainly due to problems in the real estate sector, Reuters reported.
Net debt decreased to $ 3.9 billion from $ 5 billion at the end of the previous quarter. The debt is thus the lowest since 2008.
ArcelorMittal has long owned steel production in Ostrava before selling it to the British Liberty Steel Group, which includes the company with the new name Liberty Ostrava since 2019. The Ostrava company, together with its subsidiaries, has about 6,000 employees.