UPDATE 1-ArcelorMittal cuts outlook as ore prices hit mining
* Cuts outlook to more than $7 bln from about $8 bln before
* Iron ore price assumption cut to $105/tonne from $120
* Q2 core profit $1.76 bln vs Reuters poll consensus $1.83 bln (Adds demand forecasts, profit figure)
By Philip Blenkinsop
BRUSSELS, Aug 1 (Reuters) - ArcelorMittal, the world's largest steelmaker, cut its forecast for earnings this year after lower than anticipated iron ore prices ate into the profit of its mining business.
The company, which makes about 6 percent of world steel and is a broad gauge for the health of global manufacturing, said it now expected core profit to be above $7 billion, having previously given a figure of about $8 billion for the full year.
ArcelorMittal, more than double the size of its nearest rival, nevertheless said its steel business was faring well and that it had increased demand forecasts for Europe and the United States, which account for about two-thirds of its shipments.
The company retained its forecast that global steel consumption would rise by between 3.0 and 3.5 percent, with slightly lower growth in China, now a modest decline seen in Brazil and a drop for Russia and surrounding states.
Russia only takes up about 2 percent of ArcelorMittal's steel, but its weakness removes a source of expected growth. Continuación...