Luxembourg-based Arcelor Mittal, the integrated steel and mining company, says that it is on track to earn more than $7 billion in 2014 (before interest, taxes, depreciation and amortisation), despite a large fall in iron-ore prices.

It previously expected full-year earnings of about $8 billion, based on a benchmark iron ore price of $120 a tonne.

Since then, the price of ore has fallen to $76 due to rising supply and weakening demand from China and other emerging economies. A falling ore price hurts Arcelor Mittal more than its competitors because it has a large mining operation (it sells about two-thirds of the ore to other companies).

CEO Lakshmi Mittal said that an improvement in its steel business has helped to offset the decline in ore prices.

Market conditions in Europe and North America have improved, he said. “I am happy that it is our core markets doing well this year, compared to 2013, when the emerging markets were helping growth. Based on today’s market conditions, I do not foresee a deterioration in our performance in the fourth quarter.”

Arcelor Mittal reported net income of $22 million for the three months to the end of September, compared with a loss of $193 million in the same period a year ago. This was its second consecutive quarter of profits. Its net debt rose to $17.8 billion — up from $17.4 billion at the end of June — because of working-capital investments.