is reporting a net income in 2016 of $1.77 billion or 62 cents per share,
compared to a net loss in 2015 of $7.94 billion or $3.43.
include impairment charges of $205 million ($4.8 billion in 2015); and
exceptional income of $832 million “relating to a one-time gain on employee
benefits following the signing of the new U.S. labor contract” (exceptional
charges of $1.4 billion in 2015).
also reporting a net income in the fourth quarter of $403 million or 13
cents per share, compared to a net income of $680 million or 22 cents in the
third quarter and a net loss of $6.68 billion or $2.89 in the year-ago
“2016 was a year of
progress for ArcelorMittal, characterized by improving market conditions, a
strong contribution from our Action 2020 program, and steps from governments
to address unfair trade,” AM Chair and CEO Lakshmi Mittal said in a
statement released today. “As a result, EBITDA was comfortably in excess of
initial expectations and, furthermore, we have delivered on our commitment
to prioritize debt reduction, significantly strengthening our balance sheet,
and ending the year with the lowest level of net debt since the creation of
“We enter 2017 with
good momentum in the business and the market,” Mittal added. “Our increased
confidence is reflected in the board’s decision to increase capital
expenditure for 2017. The improvement in performance is, however, from a low
base, so we will need to continue to prioritize improved returns. Central to
this will be our Action 2020 program, which will sustainably improve the
underlying performance of our business.”
“We will remain
fully focused on continuing the good progress in the three areas of cost
optimization, product mix, and volume growth,” Mittal noted. “In addition,
given global overcapacity, ensuring fair trade remains crucial and we will
continue to call for a comprehensive solution to unfair trade practices.”
steel consumption (ASC) expanded by approximately 1 percent in 2016, the
company said. “Based on the current outlook, ArcelorMittal expects ASC to
grow further in 2017 by between 0.5 to 1.5 percent,”
ASC did decline in
the U.S. in 2016 by 1 to 1.5 percent, “driven in large part of a significant
destock” in the second half of the year, the company said. “However,
underlying demand continues to expand, and the expected absence of a further
destock in 2017 should support ASC growth in the U.S. of approximately 3 to
estimates an increase of capital expenditures in 2017 to $2.9 billion, from
$2.4 billion in 2016; a decrease of interest expense to $900 million, from
$1.1 billion in 2016; and an increase in taxes and pension-fund
contributions of $200 million.
“As 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.
at Indiana Harbor
ArcelorMittal is reporting that its footprint optimization program at its
Indiana Harbor facility in East Chicago is well under way and should be
completed in 2018.
The plan calls for
* Idling these
“redundant operations”: the No. 1 aluminize line, the 84-inch hot strip
mill, the No. 5 continuous galvanizing line, and the No. 2 steel shop.
* Making $200
million in capital investments: a new caster at the No. 3 steel shop
(completed in the fourth quarter of 2016), restoration of the 80-inch hot
strip mill, and various finishing and logistics upgrades at the facility.
* Sales of $56.79
billion ($63.57 billion in 2015).
* EBITDA (earnings
before interest, taxes, depreciation) of $6.25 billion ($5.23 billion in
* Operating income
of $4.16 billion (an operating loss of $4.16 billion in 2015).
* Shipments of 83.9
million metric tons (84.6 million in 2015).
* Crude steel
production of 90.8 million metric tons (92.5 million in 2015).
Including U.S. Flat, Long, and Tubular
* Sales of $15.8
billion ($17.29 billion in 2015).
* EBITDA of $1.71
billion ($891 million in 2015).
* Operating income
of $2 billion (operating loss of $705 million in 2015).
income of $832 million (exceptional charges of $454 million in 2015).
* Steel shipments
of 21.28 million metric tons (21.3 million in 2015).
* Crude steel
production of 22.2 million metric tons (22.79 million in 2015).
* Average steel
selling price of $672 per ton ($732 per ton in 2015).