Chesterton Tribune

 

 

ArcelorMittal posts $4.56B profit in 2017

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By KEVIN NEVERS

ArcelorMittal is reporting a net income in 2017 of $4.56 billion or $4.48 basic earning per share, compared to $1.77 billion or $1.87 in 2016.

The company is also reporting a net income 4Q 2017 of $1.03 billion or $1.02 basic earnings per share, compared to a net income in the 3Q of $1.18 billion or $1.18 and a net income in the year-ago period of $403 million or 40 cents.

“The combination of improving market fundamentals and delivery against our strategic objectives contributed to a successful year for the company,” Chair and CEO Lakshmi Mittal said in a statement released on Wednesday. “Action 2020 has delivered half of its targeted EBITDA gains and we have succeeded in transforming the company’s balance sheet.”

“While we will retain a de-leveraging bias, we are also investing selectively in opportunities that will strengthen the foundations of sustainable value creation,” Mittal added. “The market environment remains supportive but the industry must continue to address the twin challenges of overcapacity and unfair trade.”

Outlook

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

The company expects the cash needs of the business in 2018 excluding capital investment--capital expenditures, interest, cash taxes, pensions, and others--to increase to approximately $5.6 billion.

The company also expects its capital expenditures to increase in 2018 by around $1 billion, to $3.8 billion, which chiefly reflects a project in Mexico and anticipated expenditures on the ILVA facility in Italy.

2017 Numbers

* Sales of $68.67 billion ($56.79 billion in 2016).

* EBITDA (earnings before interest, taxes, depreciation) of $8.4 billion ($6.25 billion).

* Operating income of $5.43 billion ($4.16 billion).

* Shipments of 85.2 million metric tons (83.9 million).

* Crude steel production of 93.1 million metric tons (90.8 million).

ArcelorMittal did not release break-out numbers for its NAFTA sector (U.S. Flat, Long, and Tubular).

 

 

 

Posted 2/1/2018

 
 
 
 

 

 

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