Chesterton Tribune

 

 

ArcelorMittal posts $179M income in 2nd Quarter

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By KEVIN NEVERS

ArcelorMittal (AM) is reporting a net income in the second quarter of 2015 of $179 million or a basic income of 10 cents per share, compared to a net loss in the first quarter of $728 million or 41 cents per share and a net income in the year-ago period of $52 million or 3 cents per share.

“Despite continued pressure on both steel and iron-ore prices, we have delivered a consistent set of operating results compared with the first quarter,” AM Chair and CEO Lakshmi Mittal said in a statement released on Friday. “Europe continues to be a bright spot, with EBITDA again improving by 10.5 percent compared with the first quarter of 2015. Mining has also performed robustly, against the backdrop of a lower iron-ore price, with ArcelorMittal Mines Canada reporting record shipment levels and improved costs.”

However, Mittal added, “We remain concerned by the high level of imports. Whilst we are somewhat encouraged by recent actions on potential trade defense measures from both the U.S. and Europe, we are also taking action to adapt our own business. More positively, even against such a challenging backdrop, we have delivered a small net income for the second quarter, reduced net debt year-on-year, and we still expect to be cash-flow positive for the year.”

Outlook

“The company’s guidance remains unchanged and continued to expect 2015 EBITDA within the range of $6 billion to $7 billion; 2015 capital expenditures of approximately $3 billion; and 2015 net interest expense of $1.4 billion,” the statement said.

EBITDA: earnings before interest, taxes, depreciation, and amortization.

The company also “continues to expect positive free cash flow in 2015 and to achieve progress toward the medium term net debt target of $15 billion,” the statement said.

2Q Numbers

* Sales of $16.8 billion ($17.1 billion in 1Q; $20.7 billion in year-ago).

* Shipments of 22.2 million metric tons (21.6 million in 1Q; 21.5 million in year-ago).

* Crude steel production of 24 million metric tons (23.7 million in 1Q; 23.1 million in year-ago).

* Operating income of $579 million ($571 million in 1Q; $832 million in year-ago).

* Own iron ore production of 16.4 million metric tons (15.6 million in 1Q; 16.6 million in year-ago).

* Iron ore shipped at market price: 10.8 million metric tons (9.4 million in 1Q; 10.5 million in year-ago).

2Q NAFTA, Including

U.S. Flat, Long, and Tubular

* Operating income of $51 million (operating loss of $103 million in 1Q; operating income of $7 million in year-ago).

* Shipments of 5.6 million metric tons (5.4 million in 1Q; 5.7 million in year-ago). The improvement was “primarily driven by a seasonal 2.3-percent increase in flat-product steel shipments and a 5.1-percent increase in long-product shipment volumes,” the company said.

* Sales of $4.5 billion (4.7 billion in 1Q; $5.4 billion in year-ago). Sales slipped “due to lower average steel selling prices (-8.8 percent), offset in part by higher steel shipments,” the company said. Average steel selling prices were down 8.8 percent for flat products and 6.9 percent for long products.

* Average steel selling price of $726 per ton ($796 in 1Q; $856 in year-ago).

* Crude steel production of 5.7 million (5.9 million in 1Q; 6.1 million in year-ago).

 

 

Posted 8/4/2015

 
 
 
 

 

 

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