Luxembourg-based steelmaker ArcelorMittal has announced a decrease in third-quarter earnings following a decline in steel shipments and prices. The company reported a net profit of $929 million, compared to $993 million in the prior year. Sales also fell by 12% to $16.62 billion.
A Challenging Quarter
ArcelorMittal's earnings before interest, taxes, depreciation, and amortization (EBITDA) dropped by 30% to $1.86 billion. These results were slightly below analysts' expectations, with a consensus estimate of $1.81 billion in EBITDA and $909 million in net profit. The company attributes its performance to lower average steel selling prices, which declined by 12% during the third quarter.
Steel Shipments and Safety Review
Steel shipments for the period decreased by 3.7% compared to the second quarter, amounting to 13.7 million metric tons. The decline was particularly evident in Europe and the Nafta region (Canada, Mexico, and the U.S.). However, shipments remained fairly steady compared to the same quarter of the previous year.
In response to an accident at its ArcelorMittal Temirtau facility in Kazakhstan, the company is conducting an internal review of its safety program and initiating an audit of its safety practices.