ArcelorMittal Q2 Earnings Preview

ArcelorMittal, the Luxembourg-based steelmaker, is set to release its second-quarter results on Thursday. Here are the key details you need to know:

Sales Forecast

According to estimates from four analysts polled by FactSet, ArcelorMittal is expected to achieve $18.76 billion in second-quarter sales. This would be a decline compared to the $22.14 billion reported in the same period last year.

Net Profit Forecast

Analysts are predicting that the company will report a net profit of $1.45 billion for the three-month period. This is lower than the $3.92 billion achieved in the same period a year ago. UBS analysts attribute this decline to falling steel prices and soft demand during this period.

What to Watch

2H Outlook

The company's outlook for the second half of the year is likely to be the main focus for investors. UBS analysts believe that a short-term rebound in steel prices is unlikely due to slowing automotive demand and high Chinese imports. They also anticipate that earnings may fall in 3Q due to seasonal weakness and the effect of lower prices.

ING analyst Stijn Demeester is more cautious about the rest of the year, considering recent adverse steel and iron ore price trends and weakening industrial indicators in Europe. However, Demeester believes that European weakness may be offset by growth in North America and Brazil.

Deutsche Bank analyst Bastian Synagowitz notes that a soft demand outlook in western markets during the second half of the year may require a pick-up in the Chinese market for a more significant rebound in shares.