Luxembourg, August 1, 2019 - ArcelorMittal (referred to as
“ArcelorMittal” or the “Company”) (MT (New York, Amsterdam, Paris,
Luxembourg), MTS (Madrid)), the world’s leading integrated steel and
mining company, today announced results1 for the three-month and
six-month periods ended June 30, 2019.
Highlights
• Health and safety: LTIF rate2 of 1.26x in 2Q 2019 and 1.19x in 1H 2019
• Operating loss of $0.2bn in 2Q 2019 including $0.9bn of impairments
($0.3bn related to the remedy asset sales for the ArcelorMittal Italia
acquisition and $0.6bn impairment of the fixed assets of ArcelorMittal
USA following a sharp decline in steel prices and high raw material
costs); 1H 2019 operating income of $0.6bn including $1.1bn of
impairments3
• EBITDA of $1.6bn in 2Q 2019; 1H 2019 EBITDA of $3.2bn, -42.6% lower
YoY reflecting a negative price-cost effect
• Net loss of $0.4bn in 2Q 2019 (including $0.9bn of impairments3); 1H
2019 net loss of $33 million (including $1.1bn of impairments3)
• Steel shipments of 22.8Mt in 2Q 2019, up 4.3% vs. 1Q 2019 and up 4.8%
vs. 2Q 2018; 1H 2019 steel shipments of 44.6Mt, up 3.5% YoY largely
reflecting the impact of the ArcelorMittal Italia acquisition • 2Q 2019
iron ore shipments of 15.5Mt (+6.1% YoY), of which 9.9Mt shipped at
market prices (-1.0% YoY); 1H 2019 iron ore shipments of 29.3Mt (+3.0%
YoY), of which 19.1Mt shipped at market prices (-0.4% YoY)
• Gross debt of $13.8bn as of June 30, 2019 as compared to $13.4bn as of
March 31, 2019. Net debt decreased by $1.0bn during the quarter to
$10.2bn as of June 30, 2019, due in part to M&A proceeds and working
capital release ($0.4bn) (despite higher raw materials costs and higher
steel shipments). Excluding IFRS 16 impact4, net debt as of June 30,
2019 was $1.5bn lower YoY
Strategic actions
• Given weak demand and high import levels in Europe, the Company has
taken steps to align its European production levels to the current
market demand. As a result of previously announced European production
curtailments, approximately 4.2Mt of annualized production curtailment
is scheduled for 2H 2019
• Further temporary cost initiatives undertaken to navigate the current
weak market backdrop
• Excluding IFRS 16 impact, net debt at the end of June 30, 2019 was the
lowest level achieved since the ArcelorMittal merger. Deleveraging
remains the Group’s priority.
• Cash needs of the business for 2019 have been reduced by $1.0bn to
$5.4bn, due to lower expected capex and tax and others
• To complement the expected deleveraging through FCF generation, the
Company has identified opportunities to unlock up to $2bn of value from
its asset portfolio over the next two years
Outlook
• The Company now expects global steel demand in 2019 to grow +0.5% to
+1.5% (ex-China steel demand growth of +0.5% to +1.0%; US +0% to +1.0%;
and Europe to contract by between -2.0% to -1.0%)
• Against this backdrop and considering scope changes (ArcelorMittal
Italia acquisition, remedy asset sales and European production
curtailments) steel shipments are still expected to increase YoY, which
should provide support for the Group's Action 2020 program
Financial highlights (on the basis of IFRS)
(USDm) unless otherwise shown |
2Q 19 |
1Q 19 |
2Q 18 |
1H 19 |
1H 18 |
Sales |
19,279 |
19,188 |
19,998 |
38,467 |
39,184 |
Operating income |
-158 |
769 |
2,361 |
611 |
3,930 |
Net income attributable to equity holders of the parent |
-447 |
414 |
1,865 |
-33 |
3,057 |
Basic earnings per share (US$) |
-0.44 |
0.41 |
1.84 |
-0.03 |
3.01 |
Operating income/ tonne (US$/t) |
-7 |
35 |
109 |
14 |
91 |
EBITDA |
1,555 |
1,652 |
3,073 |
3,207 |
5,585 |
EBITDA/ tonne (US$/t) |
68 |
76 |
141 |
72 |
130 |
Steel-only EBITDA/ tonne (US$/t) |
43 |
56 |
127 |
50 |
114 |
Crude steel production (Mt) |
23.8 |
24.1 |
23.2 |
47.8 |
46.5 |
Steel shipments (Mt) |
22.8 |
21.8 |
21.8 |
44.6 |
43.1 |
Own iron ore production (Mt) |
14.6 |
14.1 |
14.5 |
28.7 |
29.1 |
Iron ore shipped at market price (Mt) |
9.9 |
9.2 |
10 |
19.1 |
19.1 |
Source from
ArcelorMittal |