
Photo courtesy of ArcelorMittal.
Global steel producer ArcelorMittal has reported net income of $4.13 billion in the first quarter of this year. That is up slightly from the $4.05 billion earned in the previous quarter and up 80.5 percent from the $2.29 billion earned in the first quarter of 2021.
The more than $21.8 billion in sales recorded by the company in this year’s first quarter represents a 35 percent year-on-year increase and a 5 percent rise compared with the previous quarter.
Before commenting on the favorable results, Aditya Mittal, chair of the Luxembourg-based steel producer, remarked, “Our first-quarter performance was overshadowed by the war in Ukraine. Our focus has been on providing support to our 26,000 colleagues and their communities at a time of tragedy and hardship.”
ArcelorMittal was able to overcome the disruption in Ukraine caused by Russia’s invasion in part because of “our business model, characterized by diversity of geography, product category and vertical integration,” Mittal says.
He adds, “We have approved targeted investments in support of our decarbonization plans and continue to fund high-return projects in growth markets. This has all been achieved without compromising our balance sheet strength or returns to shareholders - net debt is at the lowest level since the merger” that created the company in 2006.
Looking ahead, Mittal remarks, “Market conditions are currently very strong, although we are now anticipating apparent steel consumption to contract slightly this year compared with 2021. Nevertheless, it is clear that the longer-term fundamental outlook for steel is positive. China’s focus on decarbonization and removal of value-added tax rebates on steel exports are encouraging; so too are the actions taken by governments to protect against the threats of unfair trade. And we know that steel will play a critical and vital role in the transition to a decarbonized and circular economy–there is no substitute.”
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