ArcelorMittal Beats First Quarter Profit Estimates, Sees Sharp Drops In Q2

ArcelorMittal, the world's largest steelmaker, reported slightly higher than expected first-quarter profits, but sharply declining earnings in the second quarter because of the Covid-19 pandemic.

The Luxembourg-based company said on Thursday its first-quarter core profit (EBITDA), the figure most watched by the market, was $967 million, compared with the average forecast in a company poll of $867 million.

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It forecast EBITDA would drop to between $400-$600 million, with steel shipments within a range of 13.5-14.5 million tonnes.

Net debt rose to $9.5 billion in the first quarter, from $9.3 billion at the end of 2019. Because of the need to save costs, the company said it suspended dividend payments until further notice. It had proposed a dividend for 2019 of $0.30 per share.

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