ArcelorMittal reduced its net profit by 63.3% y/y in the first half of 2023

In January-June 2023, the company's revenue decreased by 15.6%

ArcelorMittal Corporation, one of the largest steel producers in the world, in the first half of 2023, reduced net profit by 63.3% compared to the same period in 2022 – to $2.96 billion. It is stated in the financial report published on the company’s website.

The company’s EBITDA (earnings before interest, taxes and depreciation) fell by 56.8% y/y in the first half of the year – to $4.43 billion. Operating income for this period amounted to $3.12 billion, which is 65.1% less y/y. ArcelorMittal’s revenue decreased by 15.6% compared to January-June 2022.

In the second quarter, the net profit of ArcelorMittal increased by 69.7% compared to the previous quarter, and fell by 52.6% y/y – up to $1.86 billion. EBITDA for April-June amounted to $2.6 billion, which is 43% more q/q and 49.5% less y/y, operating income – $1.92 billion (+61.5% q/q; -57.2% y/y). The company’s revenue for this period increased by 0.6% compared to the previous quarter, and fell by 16% y/y – to $18.61 billion.

«In the first half of the year, we have shown strong financial performance that reflects improved market conditions, as well as the positive impact of recent strategic acquisitions. In particular, ArcelorMittal Pecém in Brazil and ArcelorMittal Texas HBI in the US are making valuable contributions, generating EBITDA that exceeds expectations. Meanwhile, development projects that strengthen our ability to produce products with higher added value in fast-growing markets, as well as investments in low-carbon supply chains, are starting to show their potential,» comments Aditya Mittal, CEO of ArcelorMittal.

As GMK Center reported earlier, in 2022 ArcelorMittal reduced net profit by 37.8% compared to 2021 – to $9.302 billion. The company’s EBITDA fell by 27% y/y – to $14.16 billion, and operating profit – by 39.5%, to $10.27 billion. ArcelorMittal’s revenue for the year increased by 4.3% compared to 2021 – to $79.844 billion.

In 2022, ArcelorMittal reduced steel production by 14.6% compared to 2021 – to 59 million tons. Iron ore production increased by 9.2% compared to 2021 – to 28 million tons.

ArcelorMittal is a leading global steel and mining company with presence in 60 countries and production assets in 18 countries.