BRUSSELS – ArcelorMittal said on Friday that first-quarter net profit increased year-on-year, due in part to continued strength in steel prices.
The steelmaker’s net profit was $1.19 billion compared with $1 billion a year earlier, while sales rose more than 16 percent to $19.19 billion.
“The outlook for 2018 has strengthened as the year has progressed, with the combination of growing demand and supply-side reform driving higher capacity utilization rates and healthy steel spreads globally,” said ArcelorMittal Chief Executive Lakshmi Mittal.
Analysts had predicted profit of $940 million on sales of $18.69 billion, according to a consensus compiled by FactSet.
Earnings before interest, taxes, depreciation and amortization reached $2.51 billion compared with a company-compiled consensus of $2.32 billion.
ArcelorMittal said it expects market conditions to remain favorable but didn’t upgrade its guidance for the year.
The company said it expects to complete its 1.8 billion-euro ($2.14 billion) takeover of struggling Italian steel mill Ilva by the end of the second quarter, having recently received conditional approval from the European Commission.