London — ArcelorMittal, the world’s largest steel maker, reported a 20% increase in annual profit on rising steel and iron ore prices, and forecast higher demand this year. The company decided not to reinstate its dividend and stopped providing earnings guidance. Earnings before interest, taxes, depreciation and amortisation (ebitda) rose to $6.26bn last year, the Luxembourg-based company said in a statement on Friday. The figure beat the $6.14bn average of 18 analysts’ estimates compiled by Bloomberg. Ebitda in the fourth quarter was $1.66bn, 51% higher than a year ago. The group’s South African unit also reported results on Friday, which showed it narrowed its loss and nudged back into solvency. Steel makers’ earnings have been bolstered by a rally in prices as Chinese stimulus stabilised the economy and policy makers around the world pledged to back growth. European steel prices surged 82% last year, while benchmark rates for iron ore and coking coal, which the ArcelorMittal grou...
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