ArcelorMittal, the world’s largest steelmaker, reported higher than expected fourth-quarter earnings and said current chief financial officer Aditya Mittal would become chief executive, replacing his father and founder Lakshmi Mittal.

The company unveiled a new USD 1 billion cost reduction plan and restarted dividend payments after higher than expected fourth-quarter earnings.

ArcelorMittal said on Thursday steel demand should grow in 2021 by between 4.5 percent and 5.5 percent, with its own shipments expected to increase, and also announced that chief financial officer Aditya Mittal was taking over as chief executive from his father Lakshmi.

The Luxembourg-based company said on Thursday fourth-quarter core profit (EBITDA), the figure most watched by the market, was USD 1.73 billion, almost double the year-ago figure and far higher than the average forecast in a company poll of USD 1.47 billion.

ArcelorMittal said it had benefited from a gradual recovery in steel demand resulting in higher steel shipments and improved margins as well as a better mining performance

It also said it would start a new USD 1 billion fixed cost reduction program, to be achieved in full by 2022, including productivity gains and a 20 percent reduction in corporate office staff.

The company said it would restart paying dividends, with an initial USD 0.30 per share to be paid in June, and said it would return a further USD 570 million to shareholders through a new share buyback programme in 2021.

First Published:Feb 11, 2021 1:26 PM IST