reporting a net income of $1.19 billion or $1.17 basic earnings per share in
the first quarter of 2018, compared to $1.03 billion or $1.02 in the fourth
quarter and $980 million or 98 cents in the year-ago period.
“The improvement in
global steel market dynamics has continued in 2018, supporting an
encouraging financial performance in the first quarter,” Chair and CEO
Lakshmi Mittal said in a statement released today. “EBITDA increased 13
percent year-on-year to $2.5 billion, while net income improved by 19
percent to $1.2 billion.”
“The outlook for
2018 has strengthened as the year has progressed, while the combination of
growing demand and supply-side reform driving higher capacity utilization
rates and healthy steel spreads globally,” Mittal added. “Against this
improving backdrop, we continue to focus on structural improvement--through
the delivery of our Action 2020 strategic plan--and investing with focus and
discipline in opportunities that will drive higher future returns.”
are favorable,” the company said. “The demand environment remains positive .
. . and steel spreads remain healthy.”
steel consumption (ASC) is estimated to have expanded by 3.2 percent in 2018
and is expected to expand in 2018 by between 1.5 and 2.5 percent. In the
U.S. ASC is expected to grow by 1.5 to 2.5 percent in 2018, including pipe
and tubes, “driven by demand in machinery and construction.”
* Sales: $19.18
billion (4Q $17.71 billion, year-ago $16.08 billion).
* Operating income:
$1.56 billion (4Q $1.23 billion, year-ago $1.56 billion).
* Operating income
per ton: $73 (4Q $59, year-ago $75).
1Q NAFTA, Including
* Sales: $4.75
billion (4Q $4.29 billion, year-ago $4.45 billion).
* Operating income:
$308 million (4Q $155 million, year-ago $396 million).
* Crude steel
production: 5.86 million metric tons (4Q 5.59 million, year-ago 6.21
* Steel shipments:
5.55 million metric tons (4Q 5.15 million, year-ago 5.61 million).
* Average steel
selling price per ton: $779 (4Q $748, year-ago $719).