Chesterton Tribune

 

 

ArcelorMittal posts $2.45B loss in 2019

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By KEVIN NEVERS

ArcelorMittal is reporting a net loss in 2019 of $2.45 billion or $2.42 earnings per common share, compared to a net income in 2018 of $5.15 billion.

The company is also reporting a net loss in the fourth quarter of $1.88 billion or $1.86, compared to a net income in the year-ago period of $1.19 billion.

“2019 was a very tough year, reflected in our significantly reduced profitability,” Chair and CEO Lakshmi Mittal said in a statement released today. “However, our cash generation remained strong helping to reduce net debt to the lowest ever level. This demonstrates the contribution of our Action2020 program which was designed to ensure ArcelorMittal can be cash flow positive through all aspects of the steel cycle. We expect to make further de-leveraging progress this year.”

“Maintaining a strong balance sheet and reach our net debt target is a clear priority for ArcelorMittal,” Mittal also said. “Having now completed the acquisition of Essar Steel India in partnership with Nippon Steel, we have also secured a new opportunity for the group in the fast-growing Indian market. The asset is performing well and offers considerable brownfield potential aligned with the country’s ambition to triple crude steel production over the next 10 years.”

“Although market conditions remain challenging, there are encouraging early signs of improvement, particularly in our core markets of U.S., Europe, and Brazil,” Mittal added. “With inventory levels having reached a very low level following a period of de-stocking, we are seeing customers return to the market, supporting an improved pricing environment.”

Outlook

“There are signs that the real demand slowdown is beginning to stabilize, and the supportive inventory environment means that we expect apparent steel consumption in our core markets to grow in 2020,” the company said.

“Certain cash needs of the business are expected to be approximately $4.5 billion,” the company said, compared to $5 billion in 2019, primarily due to lower planned capital investments.

2019 Numbers

--Sales: $70.62 billion ($76.03 billion in 2018).

--EBITDA (earnings before interest, taxes, depreciation, and amortization): $5.2 billion ($10.27 billion in 2018).

--Operating loss: $627 million (operating income of $6.54 billion in 2018).

--Operating loss per ton: $7 (operating income per ton of $78 in 2018).

--Shipments: 84.5 million metric tons (83.9 million in 2018).

--Crude Steel production: 89.8 million metric tons (92.5 million in 2018).

 

Posted 2/6/2020

 
 
 
 

 

 

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