World's largest steelmaker ArcelorMittal posts second quarter profit; US, Europe improving

ArcelorMittal, the world's largest steelmaker, says it swung to a profit in the second quarter on higher steel shipments and better margins, and it sees improving markets in the United States and Europe.

The Luxembourg-based company reported net profit of $52 million, from a loss of $205 million in the same period a year ago. Revenues rose 4.5 percent to $20.7 billion.

The company's founder and CEO, Lakshmi Mittal, said in a statement Friday that iron ore prices were not as strong as hoped, and he cut operating profit forecasts to $7 billion from $8 billion.

However, Mittal says indicators in both Europe and the U.S., which account for two-thirds of the company's business, "continue to be positive."

"We have increased our steel demand forecasts for both markets," he said.