ArcelorMittal says EU safeguards lift Europe outlook, beats earnings forecasts

By Javi West Larrañaga

July 30 (Reuters) - ArcelorMittal, the world's second-largest steelmaker, reported slightly stronger-than-expected core earnings on Thursday and said measures to curb imports were helping revive momentum in its European business.

The Luxembourg-based company posted second-quarter core earnings of $2.06 billion, above the $2.01 billion expected by analysts polled by LSEG.

The company now expects European shipments to be stable or slightly higher in the third quarter, defying the usual seasonal slowdown that typically brings high-single-digit percentage declines.

European steelmakers have benefited from steps by the European Union to shield domestic producers from cheaper imports, including tighter import quotas and the gradual introduction of a carbon border levy.

"More importantly, typically at the beginning of summer breaks in Europe, you see prices drifting lower, but what we are seeing is prices actually rising," Chief Financial Officer Genuino Christino told Reuters.

ArcelorMittal estimates EU steel imports will fall around 45% from 2025 levels as a result of the measures.

Rising profitability has prompted ArcelorMittal to restart three furnaces in Europe, Christino said, adding that the company had flexibility to increase production further and could ship slabs from Brazil if demand strengthened.

Crude steel production in Europe rose about 11% from the first quarter.

ArcelorMittal said it was also benefiting from a broader shift towards more regionalised steel markets in Canada, the United States, Mexico, India and Brazil, favouring its model of local production for local demand.

Shares rose as much as 2.4% before trimming gains to trade marginally higher by 0843 GMT.

(Reporting by Javi West Larrañaga in Gdansk, editing by Matt Scuffham)