ArcelorMittal’s European performance
ArcelorMittal’s European operations were negatively affected by the slowdown in the Eurozone. The company undertook several cost-cutting measures during that period. The results are now visible in its financial performance.
2Q15 financial performance
The chart above shows the financial performance of ArcelorMittal’s Europe operations. As you can see, steel shipments rose more than 6% year-over-year. ArcelorMittal’s steel shipments in 1Q15 had also increased by a similar amount.
ArcelorMittal’s Europe EBITDA (earnings before interest, taxes, depreciation, and amortization) in 2Q15 were almost flat compared to last year. This trend is despite a 22.7% fall in steel selling prices over this period. Operational improvements helped ArcelorMittal post higher profits in Europe.
The higher EBITDA is partially due to higher steel shipments. The per-ton EBITDA has actually fallen ~5% in 2Q15 on a year-over-year basis.
Europe remains a bright spot
According to the World Steel Association, steel demand in the European Union (EU) is expected to rise 2.1% this year and 2.8% in 2016. This should benefit all steel companies in the region. You can read more about the indicators of Europe’s steel demand in our monthly global steel indicator series.
In the next part of this series, we’ll explore ArcelorMittal’s 2Q15 financial performance in North America.