Chesterton Tribune

 

 

ArcelorMittal tells profit of $5.14B in 2018

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By KEVIN NEVERS

ArcelorMittal is reporting a net income in 2018 of $5.14 billion or $5.07 basic earnings per share, compared to a net income of $4.56 billion or $4.48, a year-over-year improvement of 12.7 percent

The company is also reporting a net income in the 4Q 2018 of $1.19 billion or $1.18 basic earnings per share, compared to a net income in 3Q 2018 of $899 million or 89 cents and a net income in the year-ago period of $1.03 billion or $1.02.

“2018 was a year of positive momentum for ArcelorMittal characterized by important strategic and financial progress,” Chair and CEO Lakshmi Mittal said in a statement released today. “Operating in a healthy market environment, the company enjoyed a strong financial performance, delivering substantial profitability improvement. Having considerably strengthened our balance sheet in recent years, we also regained our investment grade rating.”

“Delivery against our Action 2020 targets is an important focus for the group in 2019,” Mittal also said. “We did not perform at an optimum level operationally in 2018 and will seek to minimize operational disruption this year to ensure we meet our volume targets.”

Outlook

“Although the issue of global overcapacity persists and there are well publicized macro-economic risks, we expect further, moderate global steel demand growth this year,” Mittal added. “Having considerably strengthened the company in recent years, we are in a strong position to generate healthy levels of free cash and prosper through the cycle.”

The company is expecting global steel demand “to slightly expand” in 2019, compared to 2018. Steel shipments are also expected to increase, “supported by improved operational performance.”

Meanwhile, the company anticipates “certain cash needs of the business”--including capital expenditures, interest, cash taxes, and pensions--to increase in 2019 to approximately $6.4 billion (compared to an outlook in January 2018 of $5.6 billion).

Capital investments are expected to increase to $4.3 billion (compared to an outlook in January 2018 of $3.8 billion).

2018 Numbers

* Sales of $76.03 billion ($68.67 billion in 2017).

* EBITDA (earnings before interest, taxes, depreciation, and amortization) of $10.26 billion ($8.4 billion in 2017).

* Operating income of $6.53 billion ($5.43 billion in 2017).

* Operating income per ton: $78 ($64 in 2017).

* Shipments of 83.9 million metric tons (85.2 million in 2017).

* Crude steel production of 92.5 million metric tons (93.1 million in 2017).

ArcelorMittal did not release break-out numbers for its NAFTA sector (U.S. Flat, Long, and Tubular).

4Q Numbers

* Sales of $18.32 billion ($18.52 billion 3Q, $17.71 year-ago).

* EBITDA of $1.95 billion ($2.72 billion 3Q, $2.14 billion year-ago).

* Operating income of $1.04 billion ($1.56 billion 3Q, $1.23 billion year-ago).

* Operating income per ton: $51 ($76 3Q, $59 year-ago).

* Shipments of 20.2 million metric tons (20.5 million 3Q, 21 million year-ago).

* Crude steel production of 22.8 million metric tons (23.3 million 3Q, 22.7 million year-ago).

 

Posted 2/7/2019

 
 
 
 

 

 

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