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MTS - ArcelorMittal SA News Story

€24.45 0.1  0.3%

Last Trade - 09/04/21

Sector
Basic Materials
Size
Large Cap
Market Cap £22.96bn
Enterprise Value £29.29bn
Revenue £38.86bn
Position in Universe 14th / 730

UPDATE 1-ArcelorMittal beats profit expectations after lockdown low

Thu 5th November, 2020 6:54am
* Q3 core profit (EBITDA) $901 mln vs consensus $838 mln
    * Raises iron ore shipments forecast to flat vs 2019

 (Adds CEO on Q3, outlook, debt reduction)
    By Philip Blenkinsop
    BRUSSELS, Nov 5 (Reuters) - ArcelorMittal  MT.LU  MT.AS ,
the world's largest steelmaker, reported third-quarter core
profit above expectations on Thursday as the easing of COVID-19
lockdowns led to improved demand in all regions.
    The company, which makes around 5% of the world's steel,
said core profit (EBITDA) fell 15% from a year earlier to $901
million, compared with an average expectation of $838 million in
a company-compiled poll.
    CEO Lakshmi Mittal said in a statement that steel markets
had recovered from a very challenging second quarter, with
particular improvement in profits in Brazil and its unit
grouping South Africa, Kazakhstan and Ukraine.
    The company said its mining business also fared better, with
higher iron ore prices and increased production. It now expects
iron ore shipments sold at market prices to be about the same as
in 2019. It had previously forecast a 5% decline.
    ArcelorMittal said it had begun to restart some of its idled
capacity, although demand remained below normal, with a second
COVID-19 wave adding to uncertainty.
    The company added that the experience of the past six to
seven months had it operating with a leaner cost structure and
it aimed to detail more permanent cost savings when it reports
full year results in February. It has already decided to close
for good its blast furnace in Krakow, Poland.
    ArcelorMittal also hit its $7 billion net debt target at the
end of the quarter, the lowest level since ArcelorMittal's
creation in 2006 and a point at which the company can start
returning cash to shareholders.
    The company is poised to sell its U.S. assets in a cash and
shares deal with Cleveland-Cliffs Inc  CLF.N  for $1.4 billion
in a deal that has allowed it to launch a $500 million share
buyback.  urn:newsml:reuters.com:*:nL4N2GP1B8

 (Reporting by Philip Blenkinsop; Editing by Himani Sarkar and
Kim Coghill)
 ((philip.blenkinsop@thomsonreuters.com; +32 2 585 2869; Reuters
Messaging: philip.blenkinsop.thomsonreuters.com@reuters.net))
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