reporting a net income in the first quarter of 2019 of $414 million or basic
earnings per share of 41 cents, compared to $1.19 billion or $1.18 in the
fourth quarter and $1.19 billion or $1.17 in the year-ago period.
results reflect the challenging operating environment the industry has faced
in recent months,” ArcelorMittal Chair and CEO Lakshmi Mittal said in a
statement released today. “Profitability has been impacted by lower steel
pricing due to weaker economic activity and continued global overcapacity,
as well as rising raw material costs as a result of supply-side developments
“We continue to
face a challenge from high levels of imports, particularly in Europe, where
safeguard measures introduced by the European Commission have not been fully
effective,” Mittal added. “Although we are somewhat encouraged by the firmer
price environment in China, this is not being reflected in Europe, where in
order to adapt to the current market environment we have recently announced
production cuts of 3 million tons in our flat-steel operations. It is
important there is a level playing field to address unfair competition, and
this includes a green border adjustment to ensure that imports into Europe
face the same carbon costs as producers in Europe.”
“We remain focused
on our own initiatives to improve performance through delivery of our Action
2020 plan,” Mittal said. “Generating positive cash flow and demonstrating
progress in our efforts to further strengthen our balance sheet and improve
shareholder returns are the priority.”
billion ($18.32 billion 4Q, $19.18 billion year-ago).
before interest, taxes, depreciation, and amortization): $1.65 billion
($1.95 billion 4Q, $2.51 billion year-ago).
$769 million ($1.04 billion 4Q, $1.56 billion year-ago).
per ton: $35 ($51 4Q, $73 year-ago).
million metric tons (20.2 million 4Q, 21.3 million year-ago).
production: 24.1 million metric tons (22.8 million 4Q, 23.3 million
No. 2 Coke Battery
ArcelorMIttal USA reported last week that the No. 2 coke battery at the
Burns Harbor facility is now undergoing a “much-needed rebuild,” in a
project approved in May 2018 at a total estimated cost of $19.25 million
over five years.
The decision to
spread the rebuild over the next five years was made so that the battery may
be kept at full production, so as to “mitigate the need to purchase
expensive coke on the spot market.” Spot-market purchases could potentially
increase costs at the Burns Harbor and Indiana Harbor facilities by as much
as $50 million, the company said.
The No. 2 coke
battery was originally built in 1974 and last saw a pad-up rebuild in 1994.
Since then the battery “has performed exceptionally well, producing more
than 900,000 tons of coke for Burns Harbor’s two blast furnaces,” the