ArcelorMittal sees 2014 profit rise as Europe finally grows

BRUSSELS (Reuters) - ArcelorMittal , the world's largest steelmaker, forecast higher profits in the year ahead due to increased steel and iron ore shipments as Europe ends two years of decline. The company, which makes 6-7 percent of the world's steel and is a broad gauge for the health of global manufacturing, said global steel consumption should increase by between 3.5 and 4 percent in 2014 from about 3.5 percent last year. The steelmaker forecast a slowdown in consumption growth in China and Brazil, but saw a modest improvement of 1.5-2.5 percent in the European Union after declines in 2012 and 2013. Chief Executive Lakshmi Mittal said in a statement that the Luxembourg-based company was cautiously optimistic about its 2014 prospects. ArcelorMittal, more than double the size of its nearest rival, reported fourth-quarter core profit (EBITDA) of $1.91 billion (£1,169,411,620.65), higher than the average $1.80 billion average expectation in a Reuters poll of brokers. ArcelorMittal had said its core profit (EBITDA) in 2013 would be greater than $6.5 billion. In fact the figure came in at $6.89 billion. The company said that would rise to $8 billion in 2014, in line with the Thomson Reuters I/B/E/S mean estimate for 2014 of $8.1 billion. It said this was based on a 3 percent increase in steel shipments, a 15 percent rise in shipments of iron ore, average ore prices in line with the market consensus and a moderate increase in steel margins. (Reporting by Philip Blenkinsop; editing by Robert-Jan Bartunek)