Chesterton Tribune

 

 

ArcelorMittal cuts 1Q net loss to $205M

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By KEVIN NEVERS

ArcelorMittal (AM) cut its losses significantly in the first quarter of the year, reporting a net loss of $205 million or 12 cents per share, compared to a net loss in the fourth quarter of $1.227 billion or 69 cents and a net loss in the year-ago period of $345 million or 21 cents.

“Today’s figures continue to show the improved year-over-year performance of our business driven by recovering steel markets, the expansion of our mining operations, and the continued benefits of our focused cost optimization,” AM Chair and CEO Lakshmi Mittal said in a statement released today. “The prospects for growth of our core markets in Europe and the U.S. are encouraging and overall we remain cautiously optimistic about the business outlook for the rest of 2014.”

Outlook

The company is currently expecting “global apparent steel consumption” (ASC) to increase by 3 to 3.5 percent in 2014 and European ASC to increase by 2 to 3 percent.

“Despite the recent severe weather in the U.S., which dampened demand in the first quarter 2014, ASC still remains higher year-on-year and we are seeing positive signs of stronger growth in the second and third quarters of this year,” the company said. “As a result we expect U.S. ASC growth in 2014 to be towards the top end of our 3.5 to 4.5 percent range.

Meanwhile, the “successful ramp-up” of the company’s expanded capacity at ArcelorMittal Mines Canada should “underpin a 15 percent expansion of marketable iron ore volumes” in 2014, with an anticipated average iron ore price this year of $120 per ton.

1Q Numbers

* Sales of $19.788 billion, compared to $19.848 billion in the fourth quarter and $19.752 billion in the year-ago. Sales were impacted by improved steel shipments (+2.4 percent), offset by lower average selling prices (-1.3 percent) and seasonally lower market priced iron ore shipments (-9 percent) and lower iron ore reference prices (-11 percent).

* Shipments of 21.0 million metric tons, compared to 20.5 million in the fourth quarter and 20.5 million in the year-ago.

* Crude steel production of 23 million metric tons, compared to 23 million in the fourth quarter and 22.4 million in the year-ago.

* An operating income of $674 million, compared to an operating loss of $36 million in the fourth quarter and an operating income of $404 million in the year-ago.

1Q NAFTA Segment

Beginning in the first quarter of 2014, the company has restructured its organization, to place the flat, long, and tubular operations of the U.S., Canada, and Mexico into a single segment.

* Operating income of $70 million compared to $207 million in the fourth quarter and $190 million in the year-ago.

* Sales of $4.928 billion, compared to $4.991 billion in the fourth quarter and $4.887 billion in the year-ago. Sales were 1.3 percent lower due to the lower steel shipments, offset by higher average selling prices.

* Average steel selling price of $840 per ton, compared to $825 in the fourth quarter and $834 in the year-ago.

* Crude steel production of 6.256 million tons, compared to 6.361 million in the fourth quarter and 6.379 million in the year-ago.

* Shipments of 5.613 million tons, compared to 5.728 million in the fourth quarter and 5.565 million in the year-ago.

 

Posted 5/9/2014