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UPDATE 3-ArcelorMittal says strength in pivotal steel markets offsets cave pain

* Q3 core distinction (EBITDA) $1.91 bln vs Reuters check $1.82

* Keeps 2014 foresee for core distinction in additional of $7 bln

* Cuts 2014 tellurian steel forecast, sees U.S. neatly higher

* Shares adult 3.8 pct, among best behaving European blue

(Adds shares, CFO, researcher comment)

By Philip Blenkinsop

BRUSSELS, Nov 7 (Reuters) – ArcelorMittal, the
world’s largest steelmaker, forked to rising direct in a key
markets subsequent year and reliable a distinction foresee for 2014 on
Friday, as improvements in U.S. and European steel some-more than
offset plunging iron ore prices.

Analysts had feared that a association — that creates about 6
percent of tellurian steel and is one of a world’s largest iron
ore producers — would rage a opinion given a impact on
its mining operations of iron ore prices during five-year lows.

“The steel business is clever adequate — due to volume
improvements, cost improvements we have made, as good as the
overall steel marketplace — to equivalent a cost decrease in iron
ore,” Chief Financial Officer Aditya Mittal said.

ArcelorMittal shares were adult 3.3 percent during 10.21 euros at
1120 GMT, creation them a tip riser in a STOXX Europe 600
basic resources index and among a best performers in
the FTSEurofirst index of heading European stocks.

“They’ve beaten marketplace accord by 5 percent. There had
also been some doubt as to either they would be means to reason on
to their guidance,” pronounced ING researcher Jaap Kuin, who has a ‘buy’
recommendation and 13 euro cost target.

ArcelorMittal, a benchmark for worldwide manufacturing, cut
its guess for 2014 tellurian steel expenditure expansion to
2.25-2.75 percent from 3.0-3.5 percent since of a slack in
China and complicated declines in Brazil and former Soviet states.

Importantly, however, it done a pointy ceiling rider of its
overall marketplace guess for U.S. steel consumption, while that
for Europe was left small changed. The dual regions comment for
about two-thirds of ArcelorMittal’s steel shipments.

“What we say, that is important, is that we are
constructive on a U.S. economy and a European economy next
year,” Mittal said, adding he also saw a steel miscarry subsequent year
in Brazil, that fell into retrogression in a initial half of 2014.

ArcelorMittal expects a core distinction (EBITDA) this year of
above $7 billion. The “smart” guess of Thomson Reuters’s
StarMine, that weights analyst’s forecasts according to past
performance, had been for core distinction of $7.2 billion.

In a third entertain it kick estimates, with gain before
interest, tax, debasement and amortisation (EBITDA) of $1.91
billion, above a normal $1.82 billion in a Reuters check of
brokers and adult scarcely 12 percent on a same duration final year.

The association pronounced it had fared good in Europe, partly due to
an softened marketplace though also due to assets from past years of
plant closures and pursuit cuts.

North America, dampened progressing in a year by a oppressive and
extended winter, had increasing distinction from aloft steel
shipments and normal prices even as bound costs rose.


The group, double a distance of opposition Nippon Steel and
Sumitomo Metal Corp, pronounced U.S. steel expenditure would
be 8.25-8.75 percent aloft this year, buoyed by a broad-based
recovery and a building of inventories for subsequent year.

Top U.S. steelmakers, such as Nucor and U.S. Steel
Corp, have cited clever direct from a auto, appliance
and oil and gas industries, as good as reduce appetite costs.

The construction sector, that uses about half of the
world’s steel, has also softened from 2013.

ArcelorMittal pronounced that clever direct in pivotal developed
markets meant it would say a foresee that steel
shipments would be 3 percent aloft this year than last.

Iron ore shipments, it said, would be adult 15 percent after
the ramp-up of ability during a mines in eastern Canada.

The association has, however, suffered from neatly reduce iron
ore prices, mostly a outcome of a slack in China
weakening direct while miners have increased output.

The mark benchmark Asian iron ore cost .IO62-CNO=MB has
fallen by about 40 percent this year to next $80 a tonne,
prompting ArcelorMittal in Aug to cut a 2014 organisation profit

(Editing by David Goodman and Clara Ferreira Marques)

Article source: http://www.reuters.com/article/2014/11/07/arcelormittal-results-idUSL6N0SX0HU20141107

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