ArcelorMittal Q1 Net Profit and Sales Exceed Market Expectations on Improved Steel Market

ArcelorMittal (MT.US), the world's second-largest steelmaker, reported Q1 earnings that beat expectations, showing Q1 net profit of $1.1 billion, compared to $4.12 billion a year earlier. Q1 sales fell 15% to $18.50 billion, and quarterly earnings before interest, taxes, depreciation and amortisation reached $1.82 billion. In comparison, market analysts had expected the company to report Q1 net income of $694 million, EBITDA of $1.64 billion and sales of $17.4 billion. 
In response, ArcelorMittal said its sales and earnings declined in the first quarter, but this performance still exceeded analysts' expectations due to improved market conditions. 
The steelmaker's business in Europe, where it has the largest share of capacity, is understood to have improved significantly as customers began to replenish their inventories, suggesting that manufacturers and construction companies in the region may still be performing strongly after being hit by the energy crisis last year. 
Aditya Mittal, chief executive of ArcelorMittal, said in a statement on Thursday: “Market conditions improved as anticipated in the first quarter, with the end of customer destocking supporting apparent steel consumption growth and a rebound in steel spreads. We expect a further increase in profitability in the second quarter.”
It is worth noting, however, that further tightening of monetary policy in the US and Europe still poses a risk to the outlook. 
ArcelorMittal was up 1.28% at $28.47 after hours at press time.