By Alex MacDonald
LONDON--Steel titan ArcelorMittal said Friday that it narrowed
its net loss in the fourth quarter from a year earlier as it sought
to offset lower steel and iron ore prices with higher steel
shipments.
It also warned that the current year would be challenging and
forecast lower profitability following a slump in iron ore
prices.
The Luxembourg-based steelmaker, the world's largest by steel
shipments, narrowed its net loss to $955 million in the fourth
quarter compared with an impairment-weighted net loss of $1.23
billion in the same period a year earlier. The figure missed
analysts' expectations for a net profit of $442 million based on a
Factset poll.
ArcelorMittal suffered from impairment charges related to its
iron ore and steel business as well as foreign exchange and net
financing costs that amounted to more than $800 million during the
fourth quarter.
Revenue fell 5.7% to $18.72 billion in the fourth quarter
compared with the same period a year earlier due to lower iron ore
shipments, a 45% drop in achieved iron ore prices and 8% drop in
average steel selling prices which more than offset higher steel
shipments.
ArcelorMittal said it expects to generate between $6.5 billion
and $7 billion in earnings before interest, taxes, depreciation and
amortization, or Ebitda, this year after generating $7.24 billion
last year, broadly in line with analysts' expectations.
"Although operating conditions remain tough we expect steel
markets to continue to improve [in 2015], particularly for high
value-added products such as automotive," said Lakshmi Mittal, the
company's chief executive.
Write to Alex MacDonald at alex.macdonald@wsj.com
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