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ArcelorMittal Reports Second Quarter 2019 and Half Year 2019 Results

https://en.steelhome.com [SteelHome] 2019-08-02 11:05:15

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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


(To contact the reporter on this story: leo.ji@steelhome.cn or 86-555-2238932)
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