ArcelorMittal has announced results for the three and nine month periods ended 30 September 2016.
The highlights include:
- Health and safety: LTIF rate of 0.84x in 3Q16 as compared to 0.79x in 2Q16 and 0.78x in 3Q15.
- Operating income of $1.2 billion in 3Q16 lower as compared to US$1.9 billion in 2Q 2016.
- EBITDA of US$1.9 billion in 3Q16, 7.1% higher as compared to US$1.8 billion in 2Q16; 40.4% higher YoY.
- Net income of US$0.7 billion in 3Q16 as compared to net income of US$1.1 billion in 2Q 2016 (which included one-time US$0.8 billion gain from employee benefits at ArcelorMittal USA) and net loss of US$0.7 billion in 3Q15.
- Steel shipments of 20.3Mt in 3Q 2016, a seasonal decline of 8.1% as compared to 2Q16; steel shipments of 63.9Mt in 9M 2016, down 1.5% YoY.
- Net debt decreased to US$12.2 billion as of 30 September 2016, as compared to US$12.7 billion at 30 June 2016; net debt lower by US$4.6 billion as compared to US$16.8 billion as of 30 September 2015.
Commenting, Mr. Lakshmi N. Mittal, ArcelorMittal Chairman and CEO, said: “Our third quarter results reflect the progress the Company is making to improve the underlying performance of the business, as well as improved market conditions since the start of the year. Despite seasonally lower shipments, EBITDA improved compared with both the second quarter and the same period of 2015. Looking ahead, while real demand remains stable, we will be impacted by the unexpected significant increase in the price of coal. While expectations are for steel prices to align with the increased costs, in the interim the higher coal price will impact steel spreads and fourth quarter performance.”
“Overcapacity remains a concern, reinforcing the importance of a comprehensive trade response to minimise the impact of unfair trade across all product categories. But overall we remain pleased with the progress we have made this year. We are supported by a strong balance sheet, we have seen positive price momentum in our main markets and the organisation is fully aligned to successfully implement our five year strategic plan, Action 2020.”
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Read the article online at: https://www.worldcoal.com/mining/09112016/arcelormittal-reports-3q16-results/