PARIS, FRANCE – Steel manufacturing giant ArcelorMittal posted on Thursday a steep drop in profit for 2022 as demand for the metal fell and production disruptions impacted its Ukrainian factory.
The Luxembourg-based group said net profit reached $9.3 billion last year, down 38 percent from 2021.
But ArcelorMittal added in its results statement that demand outside top steel-consumer China was expected to recover, rising by two to three percent in 2023 after a drop last year.
“As we look ahead, evidence suggests that the customer destock we saw in the second half of 2022 has peaked,” said chief executive Aditya Mittal.
“Although geopolitical uncertainty remains high, we remain confident in the strength and resilience of ArcelorMittal, and in our ability to successfully execute our strategy of growth, decarbonization and sustainable returns through all aspects of the cycle,” he added.
ArcelorMittal took a $1 billion hit after suspending production at its Ukrainian factory in Kryvyi Rig following Russia’s invasion of the country.
Russian attacks against Ukraine’s power infrastructure also caused operational issues at the factory.
The conflict “resulted in low levels of production, sales and income and created significant uncertainty about the timing and ability of operations to return to a normal level of activity,” the company said.
ArcelorMittal reported a lower-than-expected net profit of $306 million for the fourth quarter.
