Chesterton Tribune

 

 

ArcelorMittal cuts loss in 3Q to $193M

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By KEVIN NEVERS

ArcelorMittal (AM) is reporting a net loss for the third quarter of 2013 of $193 million or a basic loss per share of 12 cents, compared to a net loss in the second quarter of $780 million or 44 cents and a net loss in the year-ago period of $652 million or 42 cents.

“After a weak first half, we have seen third-quarter performance improve year-on-year, positively impacted by our cost optimization efforts and the increased shipments from our mining expansion,” AM Chair and CEO) Lakshmi Mittal said in a statement released today. “We believe the bottom of the cycle is behind us . . . . Although operating conditions remain challenging, as economic indicators are improving we are cautiously optimistic about the prospects for 2014.”

Outlook

“In line with our guidance framework, underlying profitability is still expected to improve in 2013,” the company said, citing three factors:

* A 1- to 2-percent increase in steel shipments.

* An approximate 20-percent increase in marketable iron-ore shipments.

* And “the benefits realized from Asset Optimization and Management Gains initiatives.”

Net debt, meanwhile, is expected to decrease in the fourth quarter to $17 million and total annual capital expenditures for 2013 to total $3.7 billion.

3Q Numbers

* Sales of $19.643 billion, compared to $20.197 billion in the second quarter and $19.723 billion in the year-ago.

* Shipments of 21.1 million metric tons, compared to 21.3 million in the second quarter and 19.9 million in the year-ago.

* Crude steel production of 23.3 million metric tons, compared to 22.5 million in the second quarter and 21.9 million in the year-ago.

* An operating income of $477 million, compared to $352 million in the second quarter and $55 million in the year-ago.

Flat Carbon Americas 3Q

* Operating income was $321 million, compared to $61 million in the second quarter and $90 million in the year-ago.

* Sales were $4.921 billion, compared to $4.788 billion in the second quarter and $4.84 billion in the year-ago. “The increase in sales was due to higher shipments, offset in part by lower average steel selling prices (-3.2 percent), in particular in Mexico and South America.”

* Average selling price of $804 per ton, compared to $831 in the second quarter and $850 in the year-ago.

* Operating income per ton was $56, compared to $11 in the second quarter and $17 in the year-ago.

* Crude steel production was 6.343 million tons, compared to 5.589 million in the second quarter and 5.726 million in the year-ago. That 13.5-percent quarter-over-quarter increase was “driven primarily by a significant improvement in Flat USA following resolution of labor issues at Burns Harbor and operational incidents at Indiana Harbor East and West that impacted output in 2Q 2013,” the company said.

* Shipments were 5.759 million tons, compared to 5.407 million in the second quarter and 5.351 million in the year-ago. That 6.5-percent quarter-over-quarter increase was “primarily driven by higher shipment volumes in North America,” the company said.

 

 

 

Posted 11/7/2013