ArcelorMittal cuts profit guidance

Brussels
ArcelorMittal, the world’s largest producer of steel, on Thursday cut its profit guidance for 2015 due to a more bearish view of the US steel market and the impact of falling iron ore prices on its mining business.
The company, which produces 6 to 7 percent of the world’s steel, said it expected its 2015 core profit to come in between $6 billion and $7 billion. It had previously set a range of $6.5 billion to $7 billion.
In the first quarter, core profit (EBITDA) fell 21 percent to $1.38 million, below the $1.43 million expected in a poll of nine analysts.
The fall was caused by a 74 percent drop in profits at the group’s iron ore mining operations, which suffered from much lower market prices.
Its steel operations were hit by the US market, where imports increased and demand fell, largely due to destocking of inventories.