ArcelorMittal, the world’s leading integrated steel and mining company headquartered in Luxembourg, today announced results for the three month and nine month periods ended 30 September 2017.
- Health and safety: LTIF rate of 0.67x in 3Q 2017 as compared to 0.72x in 2Q 2017 and 0.84x in 3Q 2016
- Operating income of $1.2 billion in 3Q 2017 as compared to $1.4 billion in 2Q 2017; 2.5% higher YoY
- EBITDA of $1.9 billion in 3Q 2017 as compared to $2.1 billion in 2Q 2017; 1.5% higher YoY
- Net income of $1.2 billion in 3Q 2017 lower as compared to $1.3 billion in 2Q 2017 and higher as compared to $0.7 billion in 3Q 2016
- Steel shipments of 21.7Mt in 3Q 2017, an increase of 1.0% as compared to 2Q 2017; +6.8% YoY; steel shipments of 64.2Mt in 9M 2017, up 0.6% YoY
- 3Q 2017 iron ore shipments of 15Mt (+8.1% YoY), of which 9.1Mt shipped at market prices (+12.3% YoY); 9M 2017 market price iron ore shipments at 27.2Mt, up 6.8% YoY
- Net debt of $12.0 billion as of September 30, 2017, as compared to $11.9 billion as of June 30, 2017, primarily due to a negative foreign exchange impact ($0.2 billion)
Outlook and guidance:
Market conditions are favourable. The demand environment remains positive (as evidenced by the continued high readings from the ArcelorMittal weighted PMI) and steel spreads remain healthy.
The Company continues to expect cash needs of the business (capex ($2.9 billion), interest ($0.8 billion), cash taxes, pensions and other cash costs (totalling $0.9 billion) but excluding working capital investment and premiums paid to retire debt early) to be approximately $4.6 billion in 2017.
Given the improved market conditions, the Company now expects a full year 2017 investment in working capital of approximately $2.0 billion (as compared to previous guidance of approximately $1.5 billion).
Commenting, Mr. Lakshmi N. Mittal, ArcelorMittal Chairman and CEO, said “Favourable market conditions have supported another solid quarterly performance, with EBITDA for the first nine months considerably improved year-on-year. Operating conditions continue to improve, with key indicators including the ArcelorMittal weighted PMI implying a positive outlook for 2018. While pleased with the progress that we are making, we operate in a competitive global environment which is characterised by overcapacity and high levels of imports. The implementation of our strategic plan Action 2020 remains a clear priority and we are making good progress in this regard.”