ArcelorMittal enjoys biggest earnings jump in seven years
London — ArcelorMittal’s biggest earnings jump in seven years and forecasts for better steel demand shows the recovery in commodities is gaining strength. The shares added 6.5% to €8.01 in Amsterdam trading, extending a rally that has more than tripled the value of the world’s top steelmaker in the past year. Earnings before interest, taxes, depreciation and amortisation jumped 20%, the most since 2010, bolstered by higher prices for steel and iron-ore. The Luxembourg-based company has undergone a dramatic turnaround in the past year as steel prices jumped on the back of stronger economic growth in China and a broader commodities recovery. ArcelorMittal said its main financial goal is to pay down debt and return to an investment-grade credit rating, so the board decided against paying a dividend. "We model significant further earnings gains" based on better steel demand and expanding margins, Seth Rosenfeld, an analyst at Jefferies in London said. "The Europe performance is very pos...
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