ArcelorMittal reports first quarter 2019 results

Time:Fri, 10 May 2019 05:27:52 +0800

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ArcelorMittal has announced results for the three-month period ended March 31, 2019. Mr Lakshmi N. Mittal, ArcelorMittal Chairman and CEO, said "Our first quarter results reflect the challenging operating environment the industry has faced in recent months. 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 in Brazil. 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. 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 annualized production cuts of three million tonnes 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 focussed on our own initiatives to improve performance through delivery of our Action2020 plan. Generating positive free cash flow, demonstrating progress in our efforts to further strengthen our balance sheet and improve shareholder returns are the priority.”

Highlights

Operating income decreased to USD 0.8 billion in 1Q 2019 as compared to USD 1.0 billion in 4Q 2018 and USD 1.6 billion in 1Q 2018

EBITDA of USD 1.7 billion in 1Q 2019, 15.3% lower as compared to USD 2.0 billion in 4Q 2018, primarily reflecting a negative price-cost effect; 1Q 2019 EBITDA down 34.2% YoY

Net income of USD 0.4 billion in 1Q 2019

Steel shipments of 21.8 million tonne in 1Q 2019, up 7.9% vs. 4Q 2018 and up 2.2% vs. 1Q 2018

1Q 2019 iron ore shipments of 13.8 million tonne (stable YoY), of which 9.2 million tonnes shipped at market prices (+0.4% YoY)

Summary

(USDm) unless otherwise shown	1Q 19	4Q 18	3Q 18	2Q 18	1Q 18
Sales	19,188	18,327	18,522	19,998	19,186
Operating income	769	1,042	1,567	2,361	1,569
Operating income/ tonne (US$/t)	35	51	76	109	73
EBITDA	1,652	1,951	2,729	3,073	2,512
EBITDA/ tonne (US$/t)	76	96	133	141	118
Steel-only EBITDA/ tonne (US$/t)	56	79	119	127	101
Crude steel production (Mt)	24.1	22.8	23.3	23.2	23.3
Steel shipments (Mt)	21.8	20.2	20.5	21.8	21.3
Own iron ore production (Mt)	14.1	14.9	14.5	14.5	14.6
Iron ore shipped at market price (Mt)	9.2	10	8.5	10	9.1