World’s Largest Steelmaker Warns of Slowing Economic Recovery
By Don Miller, Associate Editor, Money Morning
Lakshmi Mittal, the chairman of ArcelorMittal (NYSE ADR: MT), the world’s largest steel company, yesterday (Wednesday) issued a warning about the slowing pace of the global economic recovery and lowered his company’s third-quarter forecast.
ArcelorMittal posted a 146% rise in net profits in the second quarter compared with the same period last year as demand recovered. However, the company warned third quarter results would slump by as much as 30% – hit by a seasonal dip in demand during the European summer, slower growth in China, and higher costs for iron ore.
“The improved performance in the second quarter is in line with our expectations and reflects the continued slow and progressive recovery,” Mittal told The Wall Street Journal. “The challenge for the second half of the year will be to pass on the full extent of cost increases to our customers.”