ArcelorMittal shares drop on quarterly results

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ArcelorMittal shares dropped sharply on the Paris stock exchange on Thursday after the steel giant's management said they expected to suffer pressure on prices and delivery in coming months.

Shares were down 3.75 percent at 13.87 euros early Thursday on a Paris stock exchange that was down 0.92 percent overall.

Company head Lakshmi Mittal said he was confident that the company's EBITDA (earnings before interest, taxes, depreciation, and amortisation) in the second half of 2011 would be higher than the same period in 2010.

Given that the company's EBITDA in the second half of 2010 was four billion dollars, the results for the third quarter of 2011 could be the same or slightly less than those of the preceding quarter.

Deutsche Bank analysts made their own calculations and said the forecast could turn out to be "disappointing."

Mittal acknowledged that uncertainties over the company's economic perspective had increased in recent weeks.

"At the threshold of the fourth quarter, we are confronted with pressures on both volume and price," he said.

© 2011 AFP

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