Chesterton Tribune

 

 

ArcelorMittal posts $1.2B net income in 3rd quarter

Back To Front Page

 

By KEVIN NEVERS

ArcelorMittal is reporting a net income in the third quarter of 2017 of $1.2 billion or $1.18 basic earnings per share, compared to $1.32 billion or $1.3 in the second quarter and $680 million or 67 cents in the year-ago period.

“Favorable market conditions have supported another solid quarterly performance, with EBITDA (earnings before interest, taxes, depreciation, and amortization) for the first nine months considerably improved year-on-year,” ArcelorMittal Chair and CEO Lakshmi Mittal said in a statement released on Friday. “Operating conditions continue to improve, with key indicators, including the ArcelorMittal weighted PMI (purchasing managers index), implying a positive outlook for 2018.”

“While pleased with the progress that we are making, we operate in a competitive global environment which is characterized by overcapacity and high levels of imports,” Mittal added. “The implementation of our strategic plan Action 2020 remains a clear priority and we are making good progress in this regard.”

Outlook

“Market conditions are favor,” the company said. “The demand environment remains positive (as evidenced by the continued high readings from the ArcelorMittal weighted PMI) and steel spreads remain healthy.”

Given the improved market conditions, the company now expects a full-year 2017 investment in working capital of approximately $2 billion (as compared to previous guidance of approximately $1.5 billion),” the company noted.

3Q NAFTA, Including U.S. Flat, Long, and Tubular

* Sales of $4.63 billion ($4.6 billion in 2Q, $4.26 billion in the year-ago). 3Q sales were comparable to 2Q “primarily due to higher steel shipment volumes,” “offset by lower average steel selling prices (-2.5 percent). Quarter-over-quarter average steel selling prices for flat and long products dipped by 1.8 percent and 2.2 percent respectively.

* EBITDA of $381 million ($506 million in 2Q, $566 in the year-ago). The company attributed the decline to a “negative price-cost effect,” “offset in part by higher steel shipment volumes (+4.3 percent).”

* Operating income of $256 million ($378 million in the 2Q, $424 million in the year-ago).

* Steel shipments of 5.65 million metric tons (5.41 million in the 2Q, 5.36 million in the year-ago).

* Crude steel production of 5.9 million metric tons (5.76 million in the 2Q, 5.63 million in the year-ago).

* Average steel selling price of $741 per ton ($760 in the 2Q, $715 in the year-ago).

Companywide 3Q Numbers

* Sales of $17.63 million ($17.24 million in the 2Q, $14.52 million in the year-ago).

* EBITDA of $1.92 billion ($2.11 billion in the 2Q, $1.89 billion in the year-ago).

* Operating income of $1.23 billion ($1.39 billion in the 2Q, $1.2 billion in the year-ago).

* Steel shipments of 21.7 million metric tons (21.5 million in the 2Q, 20.3 million in the year-ago).

* Crude steel production of 23.6 million metric tons (23.2 million in the 2Q, 22.6 million in the year-ago).

 

 

Posted 11/13/2017

 
 
 
 

 

 

Search This Site:

Custom Search