ArcelorMittal Shares Rise After Better-Than-Expected Earnings

By Pierre Bertrand

ArcelorMittal shares rose after the Luxembourg-based steelmaker posted better-than-expected earnings for the fourth quarter.

At 0934 GMT, shares traded 2.6% higher at EUR25.83, having risen as much as 5% earlier in the session.

The company reported fourth-quarter earnings before interest, taxes, depreciation and amortization of $1.27 billion, compared with analysts' expectations of $1.2 billion, according to a company-compiled consensus.

The beat was driven by better-than-expected earnings and average steel prices from Europe, analysts at Citi said in a research note, adding that steel prices appeared to have benefited from the recovery of spot prices in the later portion of the quarter.

Average steel prices of $975 a ton in Europe were $30 a ton higher than Citi had expected, the analysts said.

Looking ahead, ArcelorMittal said it sees early signs "of a more constructive industry backdrop."

Jefferies analyst Cole Hathorn said in a research note that the company's outlook appeared cautiously optimistic.

Hathorn added that it posted a strong cash inflow in the fourth quarter and that the result is supportive of more than $1.2 billion in potential share buybacks, compared with consensus of $1 billion for 2024.

Write to Pierre Bertrand at pierre.bertrand@wsj.com

(END) Dow Jones Newswires

February 08, 2024 05:06 ET (10:06 GMT)

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