Chesterton Tribune

 

 

ArcelorMittal posts 1Q profit of 1 billion

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By KEVIN NEVERS

ArcelorMittal (AM) is reporting a net income in the first quarter of 2017 of $1 billion or 33 cents basic earnings per share, compared to a net income in the fourth quarter of $403 million or 13 cents and a net loss in the year-ago period of $416 million or 23 cents.

EBITDA--earnings before interest, tax, depreciation, and amortization--was $2.2 billion, compared to $1.6 billion in the fourth quarter and $927 million in the year-ago.

“I am satisfied with the first-quarter results, which reflect the anticipated positive momentum in the market and the progress we are making internally to make the business stronger,” AM Chair and CEO Lakshmi Mittal said in a statement released today. “All parts of the business reported improved EBITDA as steel prices responded to higher raw material costs and strong volume growth saw steel shipments increase by 5.1 percent compared with the fourth quarter. Our mining segment benefited from an increase in iron-ore shipped at market prices as well as the higher raw material price environment.”

“Looking ahead,” Mittal added, “we expect market conditions to be broadly stable in the second quarter. While this is encouraging, the steel industry is still impacted by unfair imports in many of our key markets and we hope to see further progress in ensuring the necessary trade solutions.”

Outlook

ArcelorMittal is currently projecting apparent steel consumption (ASC) in the U.S. to grow by approximately 3 to 4 percent in 2017, after a decline last year--excluding pipe and tube, hit hard by low oil prices--of 2 percent, the latter “driven in large part by a significant destock” in the second half of 2016.

Interest expenses are expected to decrease to $900 million, from $1.1 billion in Fiscal Year 2016, while cash taxes and pension-fund contributions are expected to increase to a total of $200 million.

“As a result, the company expects the cash needs of the business in 2017 to increase to $5 billion, from $4.5 billion in 2016,” ArcelorMittal said.

1Q NAFTA, Including U.S. Flat, Long, and Tubular

* Sales of $4.45 billion ($3.79 billion in 4Q, $3.82 billion in year-ago). Higher sales were primarily due to higher average steel selling prices and higher steel shipment volumes.

* EBITDA of $524 million ($301 million in 4Q, $339 million in year-ago).

* Operating income of $396 million ($164 million in 4Q, $205 million in year-ago).

* Steel shipments of 5.61 million metric tons (5.01 million in 4Q, 5.46 million in year-ago). The company attributed the improvement to a 14.9-percent increase in flat products volumes “reflecting the end of the destock in the U.S., which negatively impacted shipments in the prior period.”

* Crude steel production of 6.21 million metric tons (5.19 million in 4Q, 5.46 million in year-ago).

* Average steel selling price of $719 ($681 in 4Q, $635 in year-ago).

Companywide 1Q Numbers

* Sales of $16.08 billion ($14.12 billion in 4Q, $13.39 billion in year-ago).

* Operating income of $75 million ($40 million in 4Q, $13 million in year-ago).

* Steel shipments of 21.1 million metric tons (20 million in 4Q, 21.5 million in year-ago).

* Crude steel production of 23.6 million metric tons (21.8 million in 4Q, 21.5 million in year-ago).

 

 

Posted 5/12/2017

 
 
 
 

 

 

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