By Pierre Bertrand

ArcelorMittal's first-quarter earnings fell but beat analysts' expectations after higher steel prices in the U.S. offset the cost of new tariffs.

Sales in North America rose 9.6% in the first quarter, compared with the previous three months, due to a 10.5% increase in steel shipments within the region and a 1.2% increase in average steel-selling prices.

The Luxembourg-based steelmaker said that Section 232 tariffs were supporting higher prices, providing a revenue offset to the costs of tariffs in the country. The U.S. imposed a 25% tariff on imported steel and aluminium in March.

That result comes as the company added that its operations in Mexico recovered in the quarter from last year's work stoppages in the country, adding that North America had returned to normalized operating levels.

In Europe, the company's mills are operating consistently, the company said.

When compared with the last quarter of 2024, European sales were stable and reflected a 4.4% increase in steel shipment volumes offset by a 2% decline in average steel-selling prices.

In Brazil, first-quarter sales declined 8.4% compared with the fourth quarter, largely due to 9.2% fall in steel shipments.

ArcelorMittal achieved $805 million in net profit for the period, compared with $938 million a year prior. The result was an improvement, however, compared with the $390 million net loss the company posted in the previous quarter.

Sales fell 9% on year to $14.8 billion but they were largely flat compared with the prior quarter, the company said.

Earnings before interest, taxes, depreciation and amortization came at $1.58 billion, compared with $1.96 billion a year prior. The result was a 4.5% decline compared with the last quarter of 2024.

Analysts had forecast $504 million in net profit from $1.55 billion in Ebitda, according to a company-provided consensus.

The company maintained its guidance for the year but said increased uncertainty regarding global trade was hurting confidence and risking further economic disruption.

Write to Pierre Bertrand at pierre.bertrand@wsj.com

(END) Dow Jones Newswires

April 30, 2025 04:05 ET (08:05 GMT)

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