Chesterton Tribune

 

 

ArcelorMittal posts first profit of year

Back To Front Page

By KEVIN NEVERS

ArcelorMittal (AM) is reporting a net income in the second quarter of 2014 of $52 million or a basic income of 3 cents per share, compared to a net loss in the first quarter of $206 million or 12 cents and a net loss in the year-ago period of $780 million or 44 cents.

“The second quarter and first half results reflect the anticipated improvement in steel shipments and margins,” AM Chair and CEO Lakshmi Mittal said. The “expansion of our iron ore business is also on track, although increased iron ore shipments were offset by lower than anticipated iron ore price.”

Outlook

“Looking ahead, indicators in both Europe and the U.S., which together account for two-thirds of our shipments, continue to be positive and we have increased our steel demand forecasts for both markets,” Mittal added. “ArcelorMittal continues to focus on delivering on its strategy of reducing costs, investing in our franchise businesses, and reducing net debt.”

2Q Numbers

* Sales of $20.704 billion, compared to $19.788 billion in the first quarter and $20.197 billion in the year-ago. Sales were impacted by improved steel shipments (+2.3 percent), marginally higher average steel selling prices (+0.9 percent), and seasonally higher market priced iron ore shipments (+12.5 percent), offset in part by lower iron ore reference prices (-15 percent).

* Shipments were 21.5 million metric tons, compared to 21.0 million in the first quarter and 20.9 million in the year-ago.

* Crude steel production was 23.1 million metric tons, compared to 23.0 million in the first quarter and 22.5 million in the year-ago.

* An operating income of $832 million, compared to $674 million in the first quarter and $352 million in the year-ago.

2Q NAFTA Segment

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

* Operating income of $7 million, compared to $70 million in the first quarter and $3 million in the year-ago.

* Sales of $5.423 billion, compared to $4.928 billion in the first quarter and $4.794 billion in the year-ago. Sales were 10 percent higher due to higher steel shipments and higher average steel selling prices, the company said. Average steel selling prices for flat products increased by 1 percent and for long products by 4.7 percent.

* Average steel selling price of $856, compared to $840 in the first quarter and $841 in the year-ago.

* Crude steel production of 6.153 million tons, compared to 6.256 million in the first quarter and 5.72 in the year-ago.

* Shipments of 5.79 million tons, compared to 5.613 million in the first quarter and 5.433 million in the year-ago.

 

 

Posted 8/1/2014