The world's second-largest steelmaker ArcelorMittal reported on Thursday second-quarter core profit that exceeded expectations, citing higher steel shipments and lower costs that blunted the impact of lower steel prices.

The Luxembourg-based company reported quarterly earnings before interest, taxes, depreciation and amortization (EBITDA) of $1.86 billion, higher than the company-compiled consensus of $1.77 billion.

The steel industry has been suffering from weaker construction activity in Europe and problems in the real estate sector in China, the world's top consumer and producer of the metal. In the U.S., interest rate hikes have dented demand.

The company cut its annual apparent global steel demand outside China to a range of 2.5% and 3% in comparison to 3%-4% growth it forecast in February.

(Reporting by Anna Peverieri and Michal Aleksandrowicz in Gdansk; Editing by Clarence Fernandez and Christian Schmollinger)