ArcelorMittal Says European Outlook Improves as Profit Rises

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Or sign-in if you have an account.(Bloomberg) — ArcelorMittal SA reported stronger than expected second-quarter earnings as the European Union moves to bolster its steel industry by raising protectionist barriers and scaling back climate measures.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountEarnings before interest, taxes, depreciation and amortization rose to $2.06 billion, from $1.68 billion in the previous quarter. Ebitda at the company’s European operations jumped 39% to $697 million, boosted by higher steel prices.Europe’s moves to bolster the industry have the potential to be “transformative” for steelmakers, ArcelorMittal Chief Financial Officer Genuino Christino said in an interview. “We’ve restarted three furnaces. We’re going to be basically running all of our furnaces in Europe from the third quarter onwards.”The results come from the period just before a significant tightening of EU steel-import restrictions took effect on July 1, cutting tariff-free quotas and doubling the duty on other shipments to 50%. The bloc’s carbon levy on imports will also help shield its steelmakers.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againThe steelmaker’s Europe division has weighed on group performance in recent years but now offers substantial upside as the trade environment strengthens, Oddo BHF Sca’s Maxime Kogge wrote in a note.Steel imports into the bloc remained elevated during the second quarter, but should fall by about half under the new quota system, Christino said. Early quota-usage data indicate that imports are already declining significantly, he added.The EU has also moved to slow the pace at which its carbon market emissions cap tightens over the next decade, responding to pressure from energy-intensive industries over mounting costs. Brussels similarly wants to extend the phaseout of free emissions allowances, while making them conditional on companies investing in decarbonization in Europe. The changes would be a boon for steelmakers like ArcelorMittal, though they still require approval from EU member states and the European Parliament.ArcelorMittal shares rose as much as 2.4%, before paring gains.(Updates with CFO comment in eighth paragraph and shares)This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.