MT - ArcelorMittal pops after best earnings quarter in 13 years on strong demand

ArcelorMittal (NYSE:MT) +2.1% pre-market after posting its best earnings quarter since 2008 and raising its steel demand guidance. Q2 EBITDA skyrocketed by more than 7x to $5.1B from $700M in the year-earlier and above analyst consensus estimate of $4.7B in a company poll, helped by strong steel demand and low inventories. Given order book and contract lags, the improvement in the market is not yet fully reflected in Q2 results, the company says. "Steel margin spreads increased significantly in the quarter,,, while spot steel prices are implying a potential for even better magnitude of increase in margins in Q3," Citi analysts say. "That ArcelorMittal sees demand further improving into the second half is another positive sign for the sustainability of current supply-demand balance and robust pricing/margins," according to analysts at Jefferies. The world's largest publicly traded steelmaker raised its forecast for the growth in global steel consumption this year to 7.5%-8.5%

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ArcelorMittal pops after best earnings quarter in 13 years on strong demand