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MTS - ArcelorMittal SA News Story

€25.21 0.8  3.1%

Last Trade - 16/04/21

Sector
Basic Materials
Size
Large Cap
Market Cap £23.62bn
Enterprise Value £29.90bn
Revenue £38.52bn
Position in Universe 12th / 729

UPDATE 1-ArcelorMittal sees signs of recovery as debt hits record low

Thu 30th July, 2020 7:41am
(Updates with outlook, cash needs)
    By Marine Strauss
    BRUSSELS, July 30 (Reuters) - ArcelorMittal  MT.AS  MT.LU ,
the world's largest steelmaker, reported higher than expected
second quarter earnings and said its core markets were showing
signs of recovery, albeit from exceptionally low levels.
    ArcelorMittal, which withdrew its guidance for global steel
consumption in May, said the speed and course of the demand
recovery following the pandemic remained uncertain.
    However, steel shipments should improve in the third quarter
from the second, when they declined by 23.7% compared with the
first three months of the year.
    Shipments were down sharpest in its largest markets, North
America and Europe, less steeply in Brazil and its segment
covering Ukraine, Kazakhstan and South Africa in the April-June
period.
    The Luxembourg-based company said on Thursday that the
automotive sector, a key customer, had restarted production and
was recovering quite strongly in the United States, with a
bounce-back of demand for machinery and metal products in
Europe.
    Construction had held up reasonably well, even in the worst
of the crisis.
    Net debt fell to $7.8 billion at the end of June from $9.5
billion at the end of March, the lowest level since 
ArcelorMittal's creation in 2006 and closing in on its target of
$7 billion. ArcelorMittal has said it will not resume dividend
payments before reaching that target.
    The company's second-quarter core profit (EBITDA), the
figure most watched by the market, was $707 million, less than
half the year-ago figure but far higher than the average
forecast in a company poll of $482 million.
     The steelmaker said it had taken a series of actions to
reduce costs and was looking into potential structural changes
to reflect the post-pandemic future. It said it would announce
these with full-year results, which are expected to be published
in February 2021.

 (Reporting by Marine Strauss @StraussMarine; editing by Philip
Blenkinsop and Carmel Crimmins.)
 ((Marine.Strauss@thomsonreuters.com; +32 2 287 6830; Reuters
Messaging: marine.strauss.thomsonreuters.com@reuters.net))
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