ArcelorMittal reports third quarter 2019 and nine months 2019
results
Luxembourg, November 7, 2019 - ArcelorMittal
(referred to as “ArcelorMittal” or the “Company”) (MT (New York,
Amsterdam, Paris, Luxembourg), MTS (Madrid)), the world’s leading
integrated steel and mining company, today announced results1 for
the three-month and nine-month periods ended September 30,
2019.
Highlights:
- Health and safety: LTIF rate2 of 1.36x in 3Q 2019 as compared
to 1.26x in 2Q 2019; 1.24x in 9M 2019
- Operating income of $0.3bn in 3Q 2019 as compared to an
operating loss of $0.2bn in 2Q 2019
- EBITDA of $1.1bn in 3Q 2019, 31.6% lower as compared to $1.6bn
in 2Q 2019, primarily reflecting the impact of seasonally lower
steel shipments and negative price-cost effect on the steel
business, and the impact of lower marketable iron ore shipments
(-14.7%) and lower iron ore quality premia11 on the mining segment
results
- Net loss of $0.5bn in 3Q 2019 as compared to net loss of $0.4bn
in 2Q 2019
- Steel shipments of 20.2Mt in 3Q 2019, 7.3% below 2Q 2019 on a
comparable basis (i.e excluding scope effect of remedy assets)
largely reflecting seasonality
- 3Q 2019 iron ore shipments of 14.6Mt (+2.7% YoY), of which
8.4Mt shipped at market prices (-1.5% YoY)
- Gross debt of $14.3bn as of September 30, 2019, as compared to
$13.8bn as of June 30, 2019. Net debt increased by $0.5bn during
the quarter to $10.7bn as of September 30, 2019, primarily driven
by negative free cash flow due in part to a seasonal working
capital investment ($0.2bn)
Financial highlights (on the basis of
IFRS1):
(USDm) unless otherwise shown |
3Q 19 |
2Q 19 |
3Q 18 |
9M 19 |
9M 18 |
Sales |
16,634 |
|
19,279 |
|
18,522 |
|
55,101 |
|
57,706 |
|
Operating income/(loss) |
297 |
|
(158 |
) |
1,567 |
|
908 |
|
5,497 |
|
Net (loss)/income attributable to equity holders of the parent |
(539 |
) |
(447 |
) |
899 |
|
(572 |
) |
3,956 |
|
Basic (loss)/earnings per common share (US$) |
(0.53 |
) |
(0.44 |
) |
0.89 |
|
(0.56 |
) |
3.89 |
|
|
|
|
|
|
|
Operating income/(loss) / tonne (US$/t) |
15 |
|
(7 |
) |
76 |
|
14 |
|
86 |
|
EBITDA |
1,063 |
|
1,555 |
|
2,729 |
|
4,270 |
|
8,314 |
|
EBITDA/ tonne (US$/t) |
53 |
|
68 |
|
133 |
|
66 |
|
131 |
|
Steel-only EBITDA/ tonne (US$/t) |
34 |
|
43 |
|
119 |
|
45 |
|
116 |
|
|
|
|
|
|
|
Crude steel production (Mt) |
22.2 |
23.8 |
23.3 |
70.1 |
69.8 |
Steel shipments (Mt) |
20.2 |
22.8 |
20.5 |
64.8 |
63.6 |
Own iron ore production (Mt) |
13.6 |
14.6 |
14.5 |
42.3 |
43.5 |
Iron ore shipped at market price (Mt) |
8.4 |
9.9 |
8.5 |
27.5 |
27.7 |
Commenting, Mr. Lakshmi N. Mittal,
ArcelorMittal Chairman and CEO, said:"As anticipated, we
continued to face tough market conditions in the third quarter,
characterized by low steel prices coupled with high raw material
costs. In these markets, we remain focused on our own initiatives
to improve performance and our priority is to reduce costs, adapt
production and focus on ensuring the business remains cash flow
positive. We continue to expect a substantial working capital
release in the fourth quarter which should enable us to further
reduce net debt year on year.”
Sustainable development and safety
performance
Health and safety - Own personnel and
contractors lost time injury frequency rateHealth and
safety performance2 (inclusive of ArcelorMittal Italia (previously
known as Ilva)), based on own personnel figures and contractors
lost time injury frequency (LTIF) rate was 1.36x in third quarter
of 2019 ("3Q 2019") as compared to 1.26x in the second quarter of
2019 (“2Q 2019”). Health and safety performance (inclusive of
ArcelorMittal Italia) in the first nine months of 2019 (“9M 2019”)
was 1.24x.Excluding the impact of ArcelorMittal Italia, the LTIF
was 0.82x for 3Q 2019 as compared to 0.68x for 2Q 2019 and 0.62x
for the third quarter of 2018 (“3Q 2018”). Health and safety
performance (excluding the impact of ArcelorMittal Italia) for 9M
2019 was 0.71x as compared to 0.66x for first nine months of 2018
(9M 2018).
The Company’s efforts to improve its Health and Safety record
remain focused on both further reducing the rate of severe injuries
and preventing fatalities.
Own personnel and contractors -
Frequency rate
Lost time injury frequency rate |
3Q 19 |
2Q 19 |
3Q 18 |
9M 19 |
9M 18 |
Mining |
1.53 |
|
0.64 |
|
0.63 |
|
0.86 |
|
0.59 |
|
NAFTA |
0.54 |
|
0.46 |
|
0.56 |
|
0.53 |
|
0.56 |
Brazil |
0.21 |
|
0.43 |
|
0.39 |
|
0.37 |
|
0.39 |
Europe |
1.18 |
|
1.00 |
|
0.76 |
|
0.98 |
|
0.88 |
ACIS |
0.59 |
|
0.58 |
|
0.61 |
|
0.65 |
|
0.63 |
Total Steel |
0.71 |
|
0.69 |
|
0.62 |
|
0.70 |
|
0.68 |
Total (Steel and Mining) |
0.82 |
|
0.68 |
|
0.62 |
|
0.71 |
|
0.66 |
ArcelorMittal Italia |
13.45 |
13.73 |
- |
12.61 |
- |
Total (Steel and Mining) including ArcelorMittal
Italia |
1.36 |
1.26 |
- |
1.24 |
- |
Key sustainable development highlights
for 3Q 2019:
- ArcelorMittal won the Steelie Award for Sustainability from the
World Steel Association for the third consecutive year for the
Company’s Climate Action report, a first for the steel
industry.
- ArcelorMittal was ranked first in the world in five categories
relating to steel companies’ readiness for a low carbon transition
in the CDP report on the steel sector, ‘Melting Point’.
- ArcelorMittal reached two milestones in its low-emissions
technology strategy, signing a Framework Collaboration Agreement
with technology provider Midrex Technologies for the design of a
demonstration plant at its Hamburg site to produce steel with
hydrogen; and a memorandum of understanding with international
energy firm Equinor to develop value chains in carbon capture and
storage as part of the Northern Lights project which, together with
partners Shell and Total, includes transport, reception and
permanent storage of CO2 in a reservoir in the northern part
of the North Sea.
- ArcelorMittal Ghent completed the installation of more than
27,000 rooftop solar panels, resulting in the largest solar roof in
Belgium, with a capacity of 10.7kWp. Alongside the 10 wind turbines
onsite and the two further turbines planned, the Ghent site will
soon have 50MW installed renewable energy capacity on site.
Analysis of results for the nine months
ended September 30, 2019 versus results for the nine months ended
September 30, 2018
Total steel shipments for 9M 2019 were 64.8 million metric
tonnes representing an increase of 1.8% as compared to 63.6 million
metric tonnes in 9M 2018, primarily due to higher steel shipments
in Europe (+6.9%) due to the impact of the consolidation of
ArcelorMittal Italia as from November 1, 2018, offset in part by
the scope effect of the remedy asset sales related to the
ArcelorMittal Italia acquisition and in Brazil (+0.8%) due
primarily to the acquisition of Votorantim (consolidated as from
April 2018), offset in part by lower shipments in ACIS (-5.6%) and
NAFTA (-5.8%). Excluding the impact of ArcelorMittal Italia,
Votorantim, and remedy assets sales steel shipments in 9M 2019 were
1.8% lower as compared to 9M 2018.
Sales for 9M 2019 decreased by 4.5% to $55.1 billion as compared
with $57.7 billion for 9M 2018, primarily due to lower average
steel selling prices reflecting continued supply chain destocking
(-7.6%) offset in part by higher steel shipments (+1.8%).
Depreciation of $2.3 billion for 9M 2019 was higher as compared
with $2.1 billion in 9M 2018. Depreciation charges for 2019 include
the depreciation of right-of-use assets recognized in property,
plant and equipment under IFRS 16 "Leases"4, which were previously
recorded as lease expenses in cost of sales and selling, general
and administrative expenses. FY 2019 depreciation is expected to be
approximately $3.1 billion (based on current exchange rates).
Impairment charges for 9M 2019 were $1.1 billion3 related to the
remedy asset sales for the ArcelorMittal Italia acquisition ($0.5
billion) and impairment of the fixed assets of ArcelorMittal USA
($0.6 billion). Impairment charges for 9M 2018 were $595 million
primarily related to the remedy asset sales for the ArcelorMittal
Italia acquisition and $86 million related to the agreed remedy
package in connection with the Votorantim acquisition5.
Exceptional items for 9M 2019 were nil. Exceptional charges for
9M 2018 were $146 million related to a provision taken in 1Q 2018
in respect of a litigation case that was settled in 3Q 20186.
Operating income for 9M 2019 was lower at $908 million as
compared to $5.5 billion in 9M 2018 primarily impacted by weaker
operating conditions (negative price-cost effect in steel segments)
reflecting both the impact of the decline in steel prices since 4Q
2018 and higher raw material costs (reflecting in particular
supply-side developments in Brazil) and impairments as discussed
above, offset in part by improved mining segment performance
(driven by higher seaborne iron ore reference prices +37.9%). The
raw material pricing environment increased during 9M 2019 and
remains dislocated from steel fundamentals, compressing steel
spreads to unsustainably low levels.
Income from associates, joint ventures and other investments for
9M 2019 was lower at $327 million as compared to $425 million for
9M 2018 driven by lower profitability of investees, whilst 9M 2018
was negatively impacted by $132 million in impairment of
ArcelorMittal’s investment in Macsteel (South Africa) following the
announced sale of its 50% stake in May 2018. Income from
investments in associates, joint ventures and other investments in
9M 2019 and 9M 2018 include the annual dividend income from Erdemir
of $93 million and $87 million, respectively.
Net interest expense was lower at $467 million for 9M 2019, as
compared to $475 million in 9M 2018. The Company expects full year
2019 net interest expense to be approximately $0.6 billion.
Foreign exchange and other net financing losses were $928
million for 9M 2019 as compared to losses of $1.0 billion for 9M
2018. Foreign exchange losses for 9M 2019 were $126 million as
compared to $227 million in 9M 2018. 9M 2019 includes non-cash
mark-to-market losses related to the mandatory convertible bond
call option following the market price decrease of the underlying
shares totalling $0.3 billion as compared to a loss of $0.1 billion
in 9M 2018. 9M 2018 included $0.1 billion premium expense on the
early redemption of bonds.
ArcelorMittal recorded an income tax expense of $334 million for
9M 2019 as compared to $362 million for 9M 2018. The tax expense of
$362 million in 9M 2018 included recognition of a deferred tax
asset primarily due to the expectation of higher future profits
mainly in Luxembourg.
ArcelorMittal’s net loss for 9M 2019 was $0.6 billion (or $0.56
basic loss per common share), as compared to a net income in 9M
2018 of $4.0 billion (or $3.89 basic earnings per common
share).
Analysis of results for 3Q 2019 versus
2Q 2019 and 3Q 2018Total steel shipments in 3Q 2019 were
11.4% lower at 20.2Mt as compared with 22.8Mt for 2Q 2019.
Excluding the impact of the remedy assets sales, steel shipments
were 7.3% lower as compared to 2Q 2019, primarily due to lower
steel shipments in Europe (-10.4%, due largely to seasonality and
weaker demand), ACIS (-14.6%, across Ukraine, Kazakhstan and South
Africa) and NAFTA (-5.6%) offset in part by a slight improvement in
Brazil (+0.9%).
Total steel shipments in 3Q 2019 were 1.7% lower as compared
with 20.5Mt for 3Q 2018. Excluding the impact of the ArcelorMittal
Italia acquisition net of the remedy asset sales, steel shipments
were 1.6% lower as compared to 3Q 2018.
Sales in 3Q 2019 were $16.6 billion as compared to $19.3 billion
for 2Q 2019 and $18.5 billion for 3Q 2018. Sales in 3Q 2019 were
13.7% lower as compared to 2Q 2019 primarily due to lower steel
shipments (-11.4%), lower average steel selling prices (-3.1%),
lower market-priced iron ore shipments (-14.7%) and lower realized
iron ore pricing reflecting reduced premia for high grade product
including pellet11. Sales in 3Q 2019 were 10.2% lower as compared
to 3Q 2018 primarily due to lower average steel selling prices
(-11.1%), lower steel shipments (-1.7%) and lower market-priced
iron ore shipments (-1.5%) offset in part by higher seaborne iron
ore reference prices (+52.6%).
Depreciation for 3Q 2019 was stable at $766 million as compared
2Q 2019. Depreciation for 3Q 2019 was higher than $653 million in
3Q 2018 primarily due to the impact of IFRS 16.
Impairment charges for 3Q 2019 were nil. Impairment charges for
2Q 2019 were $947 million related to the remedy asset sales for the
ArcelorMittal Italia acquisition ($347 million) and impairment of
the fixed assets of ArcelorMittal USA ($600 million)3. Impairment
charges for 3Q 2018 were $509 million primarily related to remedy
asset sales for the ArcelorMittal Italia acquisition.
Operating income for 3Q 2019 was $297 million as compared to an
operating loss for 2Q 2019 of $158 million and an operating income
of $1.6 billion in 3Q 2018. Operating income for 3Q 2019 was
impacted by lower shipment volumes and negative price-cost effect
in the steel segments and lower market price iron ore shipments and
lower iron ore premia in the mining segment. Operating loss in 2Q
2019 was primarily driven by impairments as discussed above, as
well as weaker operating conditions (negative price-cost effect in
the steel segments). Operating result for 3Q 2018 was impacted by
impairment charges as discussed above.
Due to the lower profitability of investees, income from
associates, joint ventures and other investments for 3Q 2019 was
$25 million as compared to $94 million for 2Q 2019 and $183 million
for 3Q 2018.
Net interest expense in 3Q 2019 was $152 million as compared to
$154 million in 2Q 2019 and $152 million in 3Q 2018.
Foreign exchange and other net financing losses in 3Q 2019 were
$524 million as compared to $173 million for 2Q 2019 and $475
million in 3Q 2018. Foreign exchange loss for 3Q 2019 was $112
million as compared to foreign exchange gains of $34 million and $9
million, in 2Q 2019 and 3Q 2018, respectively. 3Q 2019 includes
non-cash mark-to-market losses of $243 million related to the
mandatory convertible bonds call option following the market price
decrease of the underlying shares; such losses amounted to $55
million in 2Q 2019 and $114 million in 3Q 2018. 3Q 2018 also
include premium expenses on the early redemption of bonds of $0.1
billion.
ArcelorMittal recorded an income tax expense of $185 million in
3Q 2019 as compared to an income tax expense of $14 million for 2Q
2019 and $178 million for 3Q 2018. The difference is primarily
driven by 2Q 2019 recognition of deferred tax asset in Luxembourg
due to the expectation of higher future profits.
ArcelorMittal recorded a net loss for 3Q 2019 of $0.5 billion
(or $0.53 basic loss per common share), as compared to net loss for
2Q 2019 of $0.4 billion, (or $0.44 basic loss per common share),
and a net income for 3Q 2018 of $0.9 billion, (or $0.89 basic
earnings per common share).
Analysis of segment operations
NAFTA
(USDm) unless otherwise shown |
3Q 19 |
2Q 19 |
3Q 18 |
9M 19 |
9M 18 |
Sales |
4,395 |
|
5,055 |
|
5,367 |
|
14,535 |
|
15,475 |
|
Operating (loss) / income |
(24 |
) |
(539 |
) |
612 |
|
(347 |
) |
1,580 |
|
Depreciation |
(147 |
) |
(137 |
) |
(132 |
) |
(418 |
) |
(395 |
) |
Impairment |
— |
|
(600 |
) |
— |
|
(600 |
) |
— |
|
EBITDA |
123 |
|
198 |
|
744 |
|
671 |
|
1,975 |
|
Crude steel production (kt) |
5,658 |
|
5,590 |
|
5,723 |
|
16,636 |
|
17,533 |
|
Steel shipments (kt) |
5,135 |
|
5,438 |
|
5,512 |
|
15,892 |
|
16,874 |
|
Average steel selling price (US$/t) |
792 |
|
836 |
|
896 |
|
835 |
|
843 |
|
NAFTA segment crude steel production increased by 1.2% to 5.7Mt
in 3Q 2019 as compared to 5.6Mt in 2Q 2019, due to a marginal
increase in Canada.
Steel shipments in 3Q 2019 decreased by 5.6% to 5.1Mt as
compared to 2Q 2019, primarily due to a 5.9% decline in flat steel
shipments (due in part to lower slab shipments to the joint venture
AM/NS Calvert) and reflecting supply chain destocking.
Sales in 3Q 2019 decreased by 13.1% to $4.4 billion as compared
to $5.1 billion in 2Q 2019, primarily due to a 5.2% decline in
average steel selling prices (with flat and long products down 5.1%
and 6.7%, respectively) reflecting ongoing supply chain destock, as
well as to lower steel shipments.
Impairment charges for 3Q 2019 and 3Q 2018 were nil. Impairment
charges for 2Q 2019 were $600 million related to impairment of the
fixed assets of ArcelorMittal USA. Operating loss in 3Q 2019 was
$24 million as compared to operating loss of $539 million in 2Q
2019 and an operating income of $612 million in 3Q 2018.
EBITDA in 3Q 2019 decreased by 37.9% to $123 million as compared
to $198 million in 2Q 2019 primarily due to negative price-cost
effect and lower steel shipments. EBITDA in 3Q 2019 decreased by
83.5% as compared to $744 million in 3Q 2018 primarily due to
negative price-cost effect and lower steel shipments.
Brazil
(USDm) unless otherwise shown |
3Q 19 |
2Q 19 |
3Q 18 |
9M 19 |
9M 18 |
Sales |
1,929 |
|
2,126 |
|
2,103 |
|
6,211 |
|
6,282 |
|
Operating income |
196 |
|
234 |
|
374 |
|
669 |
|
958 |
|
Depreciation |
(62 |
) |
(79 |
) |
(71 |
) |
(211 |
) |
(214 |
) |
Impairment |
— |
|
— |
|
— |
|
— |
|
(86 |
) |
EBITDA |
258 |
|
313 |
|
445 |
|
880 |
|
1,258 |
|
Crude steel production (kt) |
2,669 |
|
2,830 |
|
3,158 |
|
8,512 |
|
9,073 |
|
Steel shipments (kt) |
2,810 |
|
2,785 |
|
3,097 |
|
8,475 |
|
8,411 |
|
Average steel selling price (US$/t) |
676 |
|
705 |
|
714 |
|
695 |
|
730 |
|
Brazil segment crude steel production decreased by 5.7% to 2.7Mt
in 3Q 2019 as compared to 2.8Mt for 2Q 2019, due in part to lower
flat production following the stoppage of ArcelorMittal Tubarão's
blast furnace #2 in response to deteriorating export market
conditions, offset in part by higher production in the long
business. Given continued weak export market conditions and high
raw material costs, we expect the stoppage at BF#2 at Tubarão to
last until the end of 2019.
Steel shipments in 3Q 2019 increased marginally by 0.9% to 2.8Mt
as compared to 2Q 2019, due to an increase in domestic shipments
while exports declined. Overall long products shipments increased
by 6.1% while flat products declined by 3.2% due to lower
exports.
Sales in 3Q 2019 decreased by 9.2% to $1.9 billion as compared
to $2.1 billion in 2Q 2019, primarily due to 4.1% lower average
steel selling prices offset in part by marginally higher steel
shipments as discussed above.
Operating income in 3Q 2019 declined to $196 million as compared
to $234 million in 2Q 2019 and $374 million in 3Q 2018.
EBITDA in 3Q 2019 decreased by 17.6% to $258 million as compared
to $313 million in 2Q 2019 primarily due to negative price-cost
effect. EBITDA in 3Q 2019 was 42.0% lower as compared to $445
million in 3Q 2018 primarily due to lower steel shipment volumes
and negative price-cost effect.
Europe
(USDm) unless otherwise shown |
3Q 19 |
2Q 19 |
3Q 18 |
9M 19 |
9M 18 |
Sales |
8,796 |
|
10,396 |
|
9,559 |
|
29,686 |
|
30,727 |
|
Operating (loss) / income |
(168 |
) |
(301 |
) |
100 |
|
(458 |
) |
1,533 |
|
Depreciation |
(311 |
) |
(313 |
) |
(262 |
) |
(933 |
) |
(872 |
) |
Impairment |
— |
|
(347 |
) |
(509 |
) |
(497 |
) |
(509 |
) |
Exceptional charges |
— |
|
— |
|
— |
|
— |
|
(146 |
) |
EBITDA |
143 |
|
359 |
|
871 |
|
972 |
|
3,060 |
|
Crude steel production (kt) |
10,432 |
|
12,079 |
|
10,841 |
|
34,883 |
|
33,113 |
|
Steel shipments (kt) |
9,698 |
|
11,811 |
|
9,709 |
|
33,062 |
|
30,922 |
|
Average steel selling price (US$/t) |
686 |
|
704 |
|
776 |
|
707 |
|
793 |
|
Europe segment crude steel production decreased by 13.6% to
10.4Mt in 3Q 2019 as compared to 12.1Mt in 2Q 2019. Excluding the
scope impact of remedy asset sales related to the ArcelorMittal
Italia acquisition, steel production was down 5.2%. The 4.2Mt
annualized production curtailments to bring supply in line with
addressable demand that were announced in May 2019 took effect in
part in 3Q 2019 and are scheduled to take full effect in 4Q
2019.
Steel shipments in 3Q 2019 decreased by 17.9% to 9.7Mt as
compared to 11.8Mt in 2Q 2019. Excluding the scope impact of remedy
asset sales related to the ArcelorMittal Italia acquisition, steel
shipments were down 10.4% due to seasonality and lower demand
driven by macro headwinds including declines in automobile
production. Steel shipments were stable in 3Q 2019 as compared to
3Q 2018.
Sales in 3Q 2019 were $8.8 billion, 15.4% lower as compared to
$10.4 billion in 2Q 2019, with lower average steel selling prices
-2.5% and lower shipments, as discussed above.
Impairment charges for 3Q 2019 were nil. Impairment charges for
2Q 2019 and 3Q 2018 were $347 million and $509 million,
respectively, related to remedy asset sales for the ArcelorMittal
Italia acquisition.
Operating loss in 3Q 2019 was $168 million as compared to an
operating loss in 2Q 2019 of $301 million and an operating income
of $100 million in 3Q 2018. Operating results for 2Q 2019 and 3Q
2018 were impacted by impairment charges as discussed above.
EBITDA in 3Q 2019 decreased by 60.3% to $143 million as compared
to $359 million in 2Q 2019 primarily due to lower steel shipment
volumes with a negative price cost effect offset by improved fixed
cost performance. EBITDA in 3Q 2019 decreased by 83.6% as compared
to $871 million in 3Q 2018 primarily due to negative price-cost
effect and continued losses of ArcelorMittal Italia.
ACIS
(USDm) unless otherwise shown |
3Q 19 |
2Q 19 |
3Q 18 |
9M 19 |
9M 18 |
Sales |
1,654 |
|
1,906 |
|
1,989 |
|
5,205 |
|
6,198 |
|
Operating income |
35 |
|
114 |
|
371 |
|
213 |
|
973 |
|
Depreciation |
(93 |
) |
(85 |
) |
(76 |
) |
(259 |
) |
(234 |
) |
EBITDA |
128 |
|
199 |
|
447 |
|
472 |
|
1,207 |
|
Crude steel production (kt) |
3,450 |
|
3,252 |
|
3,560 |
|
10,025 |
|
10,047 |
|
Steel shipments (kt) |
2,718 |
|
3,182 |
|
2,986 |
|
8,562 |
|
9,072 |
|
Average steel selling price (US$/t) |
532 |
|
536 |
|
597 |
|
536 |
|
609 |
|
ACIS segment crude steel production in 3Q 2019 increased by 6.1%
to 3.5Mt as compared to 3.3Mt in 2Q 2019 primarily due to
normalized production in Ukraine following planned blast furnace
repair during 2Q 2019, offset in part by weaker South Africa
performance.
Steel shipments in 3Q 2019 decreased by 14.6% to 2.7Mt as
compared to 3.2Mt as at 2Q 2019, due to the lower domestic
shipments in South Africa due to weaker demand, maintenance of the
hot strip mill for further improvements in Kazakhstan and timing of
shipments in Ukraine.
Sales in 3Q 2019 decreased by 13.2% to $1.7 billion as compared
to $1.9 billion in 2Q 2019 primarily due to lower steel
shipments.
Operating income in 3Q 2019 was $35 million as compared to $114
million in 2Q 2019 and significantly lower as compared to $371
million in 3Q 2018.
EBITDA decreased by 35.8% to $128 million in 3Q 2019 as compared
to $199 million in 2Q 2019 primarily due to negative price-cost
effect and lower steel shipment volumes. EBITDA in 3Q 2019 was
significantly lower as compared to $447 million in 3Q 2018,
primarily due to negative price-cost effect and lower steel
shipments.
Mining
(USDm) unless otherwise shown |
3Q 19 |
2Q 19 |
3Q 18 |
9M 19 |
9M 18 |
Sales |
1,182 |
|
1,423 |
|
1,008 |
|
3,732 |
|
3,097 |
|
Operating income |
260 |
|
457 |
|
179 |
|
1,030 |
|
619 |
|
Depreciation |
(112 |
) |
(113 |
) |
(102 |
) |
(332 |
) |
(316 |
) |
EBITDA |
372 |
|
570 |
|
281 |
|
1,362 |
|
935 |
|
|
|
|
|
|
|
Own iron ore production (Mt) |
13.6 |
|
14.6 |
|
14.5 |
|
42.3 |
|
43.5 |
|
Iron ore shipped externally and internally at market price (a)
(Mt) |
8.4 |
|
9.9 |
|
8.5 |
|
27.5 |
|
27.7 |
|
Iron ore shipment - cost plus basis (Mt) |
6.2 |
|
5.6 |
|
5.6 |
|
16.4 |
|
14.9 |
|
Own coal production (Mt) |
1.4 |
|
1.5 |
|
1.5 |
|
4.1 |
|
4.6 |
|
Coal shipped externally and internally at market price (a)
(Mt) |
0.7 |
|
0.7 |
|
0.7 |
|
2.1 |
|
1.8 |
|
Coal shipment - cost plus basis (Mt) |
0.8 |
|
0.7 |
|
0.9 |
|
2.2 |
|
2.7 |
|
(a) Iron ore and coal shipments of market-priced based materials
include the Company’s own mines and share of production at other
mines
Own iron ore production in 3Q 2019 decreased by 7.4% to 13.6Mt
as compared to 14.6Mt in 2Q 2019, primarily due to lower production
at ArcelorMittal Mines Canada7 (AMMC) following an electrical
failure which led to a temporary stoppage of the concentrator and
seasonally lower production (rainy season) at ArcelorMittal
Liberia. Own iron ore production in 3Q 2019 decreased by 6.2% as
compared to 3Q 2018 primarily due to lower AMMC and ArcelorMittal
Volcan mine production offset in part by higher production in
Kazakhstan.
Market-priced iron ore shipments in 3Q 2019 decreased by 14.7%
to 8.4Mt as compared to 9.9Mt in 2Q 2019, primarily driven by lower
shipments in AMMC due to production constraints following the
temporary stoppage of the concentrator and seasonally lower
market-priced iron ore shipments in Liberia. Market-priced iron ore
shipments in 3Q 2019 were 1.5% lower as compared to 3Q 2018 driven
by lower shipments in AMMC and at the Volcan mine, offset by higher
shipments in Serra Azul and Liberia. Market-priced iron ore
shipments for FY 2019 are expected to be stable as compared to FY
2018 with an increase in Liberia to be offset by lower volume at
AMMC and Volcan mine.
Own coal production in 3Q 2019 of 1.4Mt was relatively stable as
compared to 1.5Mt in 2Q 2019 primarily due to lower production at
Princeton (US) offset in part by higher production in Temirtau
(Kazakhstan). Own coal production in 3Q 2019 decreased by 2.1% as
compared to 1.5Mt in 3Q 2018 due to lower production at Temirtau
(Kazakhstan).
Market-priced coal shipments in 3Q 2019 increased by 4.9% to
0.7Mt as compared to 2Q 2019 and 4.7% as compared to 3Q 2018.
Operating income in 3Q 2019 decreased by 43.2% to $260 million
as compared to $457 million in 2Q 2019 and increased by 45% as
compared to $179 million in 3Q 2018.
EBITDA in 3Q 2019 decreased by 34.8% to $372 million as compared
to $570 million in 2Q 2019, primarily due to the impact of lower
market-priced iron ore shipments (-14.7%), lower iron ore quality
premia, higher freight costs as well as the impact of lower
seaborne marketable coking coal prices (-20.6%). EBITDA in 3Q 2019
was 32.5% higher as compared to $281 million in 3Q 2018, primarily
due to higher seaborne iron ore reference prices (+52.6%) offset in
part by lower market-priced iron ore shipments (-1.5%) and lower
iron ore quality premia, as well as the impact of lower seaborne
marketable coking coal prices (-14.4%).
Liquidity and Capital Resources
For 3Q 2019 net cash provided by operating activities was $328
million as compared to $1,786 million in 2Q 2019 and $634 million
in 3Q 2018. Net cash provided by operating activities in 3Q 2019
includes in part a working capital investment of $203 million as
compared to a working capital release of $353 million in 2Q 2019
and a working capital investment of $1,713 million in 3Q 2018.
The Group invested more in working capital than expected in FY
2018 ($4.4 billion versus guidance of $3.0-3.5 billion) and
continues to expect this additional investment of approximately $1
billion to be released in full in 2019. As a result, given the 9M
2019 investment of $0.4 billion, the Company expects at least a
$1.4 billion release in the final quarter of 2019. The actual
extent of any further changes in working capital in 2019, will
however be dictated by market conditions, particularly the price
and volume environment in the final weeks of the year.
Net cash used in investing activities during 3Q 2019 was $816
million as compared to $564 million during 2Q 2019 and $601 million
in 3Q 2018. Capex increased to $941 million in 3Q 2019 as compared
to $869 million in 2Q 2019 and $781 million in 3Q 2018. The Company
continues to adapt its capex plans to the operating environment and
now expects FY 2019 capex to be less than $3.5 billion (lower
versus mid-year guidance of $3.8 billion).
Net cash provided by other investing activities in 3Q 2019 of
$125 million primarily includes net proceeds from the sale of our
remaining 2.6% stake in Gerdau ($116 million cash received
following sale of 30 million shares) and final installment of
disposal proceeds from ArcelorMittal USA's 21% stake in the Empire
Iron Mine Partnership ($44 million), offset by the quarterly lease
payment for ArcelorMittal Italia. Net cash provided by other
investing activities in 2Q 2019 of $305 million primarily includes
net proceeds from remedy asset sales for the ArcelorMittal Italia
acquisition of $0.5 billion, offset by $0.1 billion partial
reversal of the Indian rupee rolling hedge entered into in
connection with the proposed acquisition of Essar10 and by the
quarterly lease payment for the ArcelorMittal Italia
acquisition.
Net cash provided by financing activities in 3Q 2019 was $659
million as compared to $180 million in 2Q 2019 and net cash used in
financing activities in 3Q 2018 of $597 million. In 3Q 2019, net
cash provided by financing activities includes a net inflow of $804
million primarily related to the net issuance and early redemption
of bonds (see recent developments below). In 2Q 2019, net cash
provided by financing activities included a net inflow of $0.5
billion for new bank financing. Net cash used in financing
activities in 3Q 2018 of $597 million primarily
includes payments relating to bond repurchases pursuant to
cash tender offers ($0.6 billion).
During 3Q 2019, the Company paid dividends of $61 million mainly
to minority shareholders in ArcelorMittal Mines Canada. During 2Q
2019, the Company paid dividends of $204 million mainly to
ArcelorMittal shareholders. During 3Q 2018, the Company paid
dividends of $37 million to minority shareholders in ArcelorMittal
Mines Canada.
Outflows from lease principal payments and other financing
activities (net) were $84 million for 3Q 2019 and 2Q 2019
respectively, as compared to $17 million in 3Q 2018. The increase
year-on-year is as a result of the first-time application of IFRS
16 effective from January 1, 2019, as the repayments of the
principal portion of the operating leases are presented under
financing activities (previously reported under operating
activities).
As of September 30, 2019, the Company’s cash and cash
equivalents amounted to $3.6 billion as compared to $3.7 billion at
June 30, 2019 and $2.4 billion at December 31, 2018.
Gross debt increased to $14.3 billion as of September 30, 2019,
as compared to $13.8 billion at June 30, 2019 and $12.6 billion in
December 31, 2018. As of September 30, 2019, net debt increased by
$0.5 billion to $10.7 billion as compared to $10.2 billion as of
June 30, 2019. Net debt was higher as of September 30, 2019 as
compared to June 30, 2019 primary due to negative free cash flow
(including a temporary working capital investment of $0.2
billion).
As of September 30, 2019, the Company had liquidity of $9.1
billion, consisting of cash and cash equivalents of $3.6 billion
and $5.5 billion of available credit lines8. The $5.5 billion
credit facility contains a financial covenant not to exceed 4.25x
Net debt / LTM EBITDA (as defined in the facility). As of September
30, 2019, the average debt maturity was 5.1 years.
Key recent developments
- On November 4, 2019, AM InvestCo Italy (“AM InvestCo”) sent to
the Commissioners of Ilva S.p.A. a notice to withdraw from, or
terminate, the agreement (the “Agreement”) for the lease and
subsequent conditional purchase of the business of Ilva S.p.A. and
certain of its subsidiaries (“Ilva”), that had closed on 31 October
2018. The Agreement stipulates that, in the event that a new law
affects the environmental plan for the Taranto plant so as to
materially impair the ability to operate it or to implement its
industrial plan, AM InvestCo has a contractual right to withdraw
from the Agreement. Effective on November 3, 2019, the Italian
Parliament has removed the legal protection necessary for AM
InvestCo to implement its environmental plan without the risk of
criminal liability, thus justifying the withdrawal notice. In
addition, the decisions issued by the criminal court of Taranto
bind the Ilva extraordinary Commissioners to complete certain
prescriptions by December 13, 2019 - a term the Commissioners
themselves deemed impossible to meet - failing which blast furnace
number 2 will be shut down. Such prescriptions should also
reasonably and prudentially be applied to the other two blast
furnaces at the Taranto plant. The shutdown would make it
impossible for AM InvestCo to implement its industrial plan,
operate the Taranto plant and, generally, perform the Agreement.
Other serious occurrences, independent of AM InvestCo’s will, have
also led to a situation of legal and operational uncertainty that
has further significantly impaired the ability to carry out the
necessary operations at Ilva and operate the Taranto plant. All the
mentioned circumstances also entitle AM InvestCo to terminate the
Agreement under the applicable provisions and principles of the
Italian Civil Code. In accordance with the content of the
Agreement, AM InvestCo has asked the extraordinary Commissioners to
take responsibility for Ilva’s operations (including the Taranto
plant and the plants in Novi Ligure and Genova) and employees
within 30 days from the receipt of the notice of withdrawal and
termination.Until transfer of the operations to the Commissioners
is completed, AM InvestCo will implement its stand-by plan. AM
InvestCo has been loss making since its consolidation in the
Group’s results in November 2018. ArcelorMittal expects to continue
to consolidate AM InvestCo's results until the control of the
assets is transferred to the Commissioners.
- The Supreme Court case which dealt with appeals over NCLAT’s
earlier order concluded on October 24, 2019. Assuming a favourable
and clear final order which is expected to be issued shortly, the
transaction closing is expected in 4Q 2019. After completion,
ArcelorMittal will jointly own and operate ESIL in partnership with
Nippon Steel Corp (“NSC”), Japan’s largest steel producer and the
third largest steel producer in the world, in-line with the joint
venture formation agreement signed with NSC on January 22, 2019.
ArcelorMittal and NSC expect to finance the joint venture through a
combination of partnership equity (one-third) and debt
(two-thirds), and ArcelorMittal anticipates that its investment in
the joint venture will be equity accounted.
- On October 4, 2019, S&P reaffirmed its BBB- rating but
revised its outlook to negative on the stated basis that they
remain watchful of further deteriorating markets or if the Company
experiences delays with its divestment program.
- On September 25, 2019, ArcelorMittal South Africa (AMSA)
announced that its board of directors (the "AMSA Board") had
extended its planned strategic evaluation process to incorporate a
review of the operational and financial sustainability of certain
of its major operating sites, individual plants and production
areas, although excluding its commercial market coke operations and
not impacting the announced planned acquisition of the Highveld
Structural Mill. AMSA is in the process of consulting with its
employees and trade unions and it is envisaged that this process
may be finalized in the fourth quarter of 2019. The announcement
notes that the objective of the review is to strengthen the
long-term sustainability of AMSA. Consequently, by actively
addressing those operating sites, individual plants and production
areas which historically have had a negative impact on AMSA's
financial results, the AMSA Board aims to strengthen the financial
fundamentals of those business areas which are underpinned by the
targeted asset footprint. The announcement further notes that the
AMSA Board is committed to the establishment of an affordable asset
footprint with an enduring competitive advantage. However, certain
of the AMSA's operating sites, individual plants and production
areas have proven to be particularly vulnerable from a financial
perspective given (i) the extended period of economic weakness,
(ii) structural disadvantages, and (iii) an increasingly
uncompetitive cost base - notably manifest in unaffordable
regulated tariffs and raw material prices. The outcome of the
review may result in the closure of certain operating sites,
individual plants and production areas, and the consequential
concentration of operations at the remaining sites. Such decisions
would be taken as a result of the affected business areas being no
longer financially viable considering the factors noted above.
- On August 30, 2019, ArcelorMittal redeemed all of the
outstanding $324 million of its $500 million 5.125% Notes due June
1, 2020 and the outstanding $626 million of its $1 billion 5.250%
Notes due August 5, 2020.
- On July 16, 2019, ArcelorMittal issued $750 million of its
3.60% Notes due 2024 and $500 million of its 4.25% Notes due 2029.
ArcelorMittal used the net proceeds of this offering for general
corporate purposes including future repayment of existing
indebtedness and to partially pre-fund commitments under the ESIL
acquisition financing facility.
- On July 4, 2019, ArcelorMittal completed the issuance of €250
million ($285 million) of its 2.25% Fixed Rate Notes due 2024,
which were consolidated and form a single series with the existing
€750 million 2.25% Fixed Rate Notes due 2024 originally issued on
January 17, 2019 under its €10 billion EMTN Program. The proceeds
of the issuance were used for general corporate purposes.
- On July 1, 2019, ArcelorMittal completed the offering of €450
million ($512 million) in variable rate loans in the German
Schuldschein market. The proceeds of the issuance were used for
general corporate purposes.
Outlook and guidance
Based on year-to-date growth and the current economic outlook
ArcelorMittal expects global apparent steel consumption (“ASC”) to
grow in 2019 by between +0.5% to +1.0% (i.e. towards the lower end
of previous guidance of +0.5% to 1.5%). By region: In the US, given
continued destocking of the supply chain, ASC is now expected to
contract by up to -0.5% to -1.0% in 2019 (versus +0.0% to +1.0%
previous guidance range), with ongoing weakness in automotive
demand and a slowdown in machinery offset in part by healthy
non-residential construction demand; In Europe, demand is expected
to contract by up to -3.0% (versus -1.0% to -2.0% previous guidance
range) with ongoing automotive demand weakness and slowing
construction exacerbated by supply chain destocking; In
Brazil, ASC growth in 2019 is forecasted at around +0.5% to
+1.0% (a moderation versus +1.5% to +2.5% previous guidance range)
driven by delayed growth in infrastructure spend, ongoing supply
chain destocking, as well as impacts of the Argentinian recession;
In the CIS, expected ASC growth in 2019 has been upgraded to +2.5%
to +3.0% (versus +1.0% to +2.0% previous estimate) led by robust
demand in Russia. Overall, World ex-China ASC in 2019 is now
expected to be stable in 2019 (versus previous guidance for growth
within the range of +0.5% to +1.0%). In China, overall demand
expectations have been increased again and we now forecast growth
of between +1.5% to 2.0% in 2019 (versus +0.5% to +1.5% previous
guidance range) as real estate demand continues to remain
robust.
Given these demand expectations, the Group's steel shipments are
now expected to be stable in 2019 vs 2018 (revised from previous
guidance of an increase year-on-year).
Market-priced iron ore shipments for FY 2019 are still expected
to be stable as compared to FY 2018.
The Company expects certain cash needs of the business
(including capex, interest, cash taxes, pensions and certain other
cash costs but excluding working capital movements) to be $5.0
billion in 2019 versus previous $5.4 billion guidance at 1H 2019
results announcement. The Company has further reduced expected
capex to $3.5 billion versus mid-year guidance of $3.8 billion.
Interest expense in 2019 is now expected to be $0.6 billion
(revised down from $0.65 billion previous guidance) while cash
taxes, pensions and other cash costs are now expected to be $0.9
billion (versus previous guidance of $1.0 billion due to lower
expected cash taxes).
The Group invested more in working capital than expected in 2018
($4.4 billion versus guidance of $3.0-3.5 billion) and continues to
expect this additional investment of approximately $1 billion to be
released in full in 2019. As a result, given the 9M 2019 investment
of $0.4 billion, the Company expects a release of at least $1.4
billion in the final quarter of 2019. The actual extent of any
further changes in working capital in 2019 will, however, be
dictated by market conditions, particularly the price and volume
environment in the final weeks of the year.
As previously announced in the 2Q 2019 results and in line with
our ongoing efforts to optimize our asset portfolio, we have
identified opportunities to unlock $2 billion of value from the
portfolio over the next 2 years. The Company is making progress and
currently engaged in active discussions with interested parties on
several opportunities.
The Company will continue to prioritize deleveraging and
believes that $7 billion (including impact of IFRS 16) is an
appropriate net debt target that will sustain investment grade
metrics even at the low point of the cycle.
ArcelorMittal intends to progressively increase the base
dividend paid to its shareholders, and, on attainment of the net
debt target, the Company is committed to returning a portion of
annual FCF to shareholders.
ArcelorMittal Condensed Consolidated Statement of
Financial Position1
In millions of U.S. dollars |
Sept 30,2019 |
Jun 30,2019 |
Dec 31,2018 |
ASSETS |
|
|
|
Cash and
cash equivalents |
3,647 |
|
3,656 |
|
2,354 |
|
Trade
accounts receivable and other |
4,340 |
|
5,048 |
|
4,432 |
|
Inventories |
18,938 |
|
20,550 |
|
20,744 |
|
Prepaid
expenses and other current assets |
2,830 |
|
3,123 |
|
2,834 |
|
Assets
held for sale9 |
115 |
|
122 |
|
2,111 |
|
Total Current Assets |
29,870 |
|
32,499 |
|
32,475 |
|
|
|
|
|
Goodwill
and intangible assets |
5,408 |
|
5,480 |
|
5,728 |
|
Property,
plant and equipment |
35,903 |
|
36,725 |
|
35,638 |
|
Investments in associates and joint ventures |
4,826 |
|
5,026 |
|
4,906 |
|
Deferred
tax assets |
8,449 |
|
8,412 |
|
8,287 |
|
Other
assets |
3,691 |
|
4,224 |
|
4,215 |
|
Total Assets |
88,147 |
|
92,366 |
|
91,249 |
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
Short-term debt and current portion of long-term debt |
3,337 |
|
3,107 |
|
3,167 |
|
Trade
accounts payable and other |
12,440 |
|
14,418 |
|
13,981 |
|
Accrued
expenses and other current liabilities |
5,288 |
|
5,549 |
|
5,486 |
|
Liabilities held for sale9 |
29 |
|
35 |
|
821 |
|
Total Current Liabilities |
21,094 |
|
23,109 |
|
23,455 |
|
|
|
|
|
Long-term
debt, net of current portion |
10,968 |
|
10,723 |
|
9,316 |
|
Deferred
tax liabilities |
2,160 |
|
2,284 |
|
2,374 |
|
Other
long-term liabilities |
11,696 |
|
12,139 |
|
11,996 |
|
Total Liabilities |
45,918 |
|
48,255 |
|
47,141 |
|
|
|
|
|
Equity
attributable to the equity holders of the parent |
40,242 |
|
42,033 |
|
42,086 |
|
Non-controlling interests |
1,987 |
|
2,078 |
|
2,022 |
|
Total Equity |
42,229 |
|
44,111 |
|
44,108 |
|
Total Liabilities and Shareholders’ Equity |
88,147 |
|
92,366 |
|
91,249 |
|
ArcelorMittal Condensed Consolidated Statement of
Operations1
|
Three months ended |
Nine months ended |
In millions of U.S. dollars unless otherwise
shown |
Sept 30,2019 |
Jun 30,2019 |
Sept 30,2018 |
Sept 30,2019 |
Sept 30,2018 |
Sales |
16,634 |
|
19,279 |
|
18,522 |
|
55,101 |
|
57,706 |
|
Depreciation
(B) |
(766 |
) |
(766 |
) |
(653 |
) |
(2,265 |
) |
(2,076 |
) |
Impairments
(B) |
— |
|
(947 |
) |
(509 |
) |
(1,097 |
) |
(595 |
) |
Exceptional
items6 (B) |
— |
|
— |
|
— |
|
— |
|
(146 |
) |
Operating income / (loss) (A) |
297 |
|
(158 |
) |
1,567 |
|
908 |
|
5,497 |
|
Operating
margin % |
1.8 |
% |
(0.8 |
)% |
8.5 |
% |
1.6 |
% |
9.5 |
% |
|
|
|
|
|
|
Income from
associates, joint ventures and other investments |
25 |
|
94 |
|
183 |
|
327 |
|
425 |
|
Net interest
expense |
(152 |
) |
(154 |
) |
(152 |
) |
(467 |
) |
(475 |
) |
Foreign
exchange and other net financing loss |
(524 |
) |
(173 |
) |
(475 |
) |
(928 |
) |
(1,039 |
) |
(Loss) / income before taxes and non-controlling
interests |
(354 |
) |
(391 |
) |
1,123 |
|
(160 |
) |
4,408 |
|
Current tax expense |
(121 |
) |
(225 |
) |
(206 |
) |
(526 |
) |
(730 |
) |
Deferred tax (expense) / benefit |
(64 |
) |
211 |
|
28 |
|
192 |
|
368 |
|
Income tax
expense |
(185 |
) |
(14 |
) |
(178 |
) |
(334 |
) |
(362 |
) |
(Loss) / income including non-controlling
interests |
(539 |
) |
(405 |
) |
945 |
|
(494 |
) |
4,046 |
|
Non-controlling interests income |
— |
|
(42 |
) |
(46 |
) |
(78 |
) |
(90 |
) |
Net
(loss) / income attributable to equity holders of the
parent |
(539 |
) |
(447 |
) |
899 |
|
(572 |
) |
3,956 |
|
|
|
|
|
|
|
Basic (loss) / earnings per common share ($) |
(0.53 |
) |
(0.44 |
) |
0.89 |
|
(0.56 |
) |
3.89 |
|
Diluted (loss) / earnings per common share ($) |
(0.53 |
) |
(0.44 |
) |
0.88 |
|
(0.56 |
) |
3.87 |
|
|
|
|
|
|
|
Weighted average common shares outstanding (in millions) |
1,012 |
|
1,014 |
|
1,014 |
|
1,013 |
|
1,016 |
|
Diluted weighted average common shares outstanding (in
millions) |
1,012 |
|
1,014 |
|
1,019 |
|
1,013 |
|
1,021 |
|
|
|
|
|
|
|
OTHER INFORMATION |
|
|
|
|
|
EBITDA (C =
A-B) |
1,063 |
|
1,555 |
|
2,729 |
|
4,270 |
|
8,314 |
|
EBITDA
Margin % |
6.4 |
% |
8.1 |
% |
14.7 |
% |
7.7 |
% |
14.4 |
% |
|
|
|
|
|
|
Own iron ore
production (Mt) |
13.6 |
14.6 |
14.5 |
42.3 |
43.5 |
Crude steel
production (Mt) |
22.2 |
23.8 |
23.3 |
70.1 |
69.8 |
Steel shipments (Mt) |
20.2 |
22.8 |
20.5 |
64.8 |
63.6 |
ArcelorMittal Condensed Consolidated Statement of Cash
flows1
|
Three months ended |
Nine months ended |
In millions of U.S. dollars |
Sept 30,2019 |
Jun 30,2019 |
Sept 30,2018 |
Sept 30,2019 |
Sept 30,2018 |
Operating
activities: |
|
|
|
|
|
(Loss)/income attributable to equity holders of the parent |
(539 |
) |
(447 |
) |
899 |
|
(572 |
) |
3,956 |
|
Adjustments to reconcile net income to net cash provided by
operations: |
|
|
|
|
|
Non-controlling interests income |
— |
|
42 |
|
46 |
|
78 |
|
90 |
|
Depreciation and impairments |
766 |
|
1,713 |
|
1,162 |
|
3,362 |
|
2,671 |
|
Exceptional items6 |
— |
|
— |
|
— |
|
— |
|
146 |
|
Income
from associates, joint ventures and other investments |
(25 |
) |
(94 |
) |
(183 |
) |
(327 |
) |
(425 |
) |
Deferred
tax expense / (benefit) |
64 |
|
(211 |
) |
(28 |
) |
(192 |
) |
(368 |
) |
Change in
working capital |
(203 |
) |
353 |
|
(1,713 |
) |
(403 |
) |
(4,814 |
) |
Other
operating activities (net) |
265 |
|
430 |
|
451 |
|
1,139 |
|
770 |
|
Net cash provided by operating activities (A) |
328 |
|
1,786 |
|
634 |
|
3,085 |
|
2,026 |
|
Investing activities: |
|
|
|
|
|
Purchase
of property, plant and equipment and intangibles (B) |
(941 |
) |
(869 |
) |
(781 |
) |
(2,757 |
) |
(2,149 |
) |
Other
investing activities (net) |
125 |
|
305 |
|
180 |
|
684 |
|
316 |
|
Net cash used in investing activities |
(816 |
) |
(564 |
) |
(601 |
) |
(2,073 |
) |
(1,833 |
) |
Financing activities: |
|
|
|
|
|
Net
proceeds / (payments) relating to payable to banks and long-term
debt |
804 |
|
468 |
|
(543 |
) |
1,136 |
|
194 |
|
Dividends
paid |
(61 |
) |
(204 |
) |
(37 |
) |
(311 |
) |
(188 |
) |
Share
buyback |
— |
|
— |
|
— |
|
(90 |
) |
(226 |
) |
Lease
payments and other financing activities (net) |
(84 |
) |
(84 |
) |
(17 |
) |
(240 |
) |
(58 |
) |
Net cash provided by / (used in) financing
activities |
659 |
|
180 |
|
(597 |
) |
495 |
|
(278 |
) |
Net
increase / (decrease) in cash and cash equivalents |
171 |
|
1,402 |
|
(564 |
) |
1,507 |
|
(85 |
) |
Cash and
cash equivalents transferred (to)/from assets held for sale |
— |
|
21 |
|
— |
|
10 |
|
(23 |
) |
Effect of exchange rate changes on cash |
(155 |
) |
17 |
|
(56 |
) |
(153 |
) |
(143 |
) |
Change in cash and cash equivalents |
16 |
|
1,440 |
|
(620 |
) |
1,364 |
|
(251 |
) |
|
|
|
|
|
|
Free cash flow (C=A+B) |
(613 |
) |
917 |
|
(147 |
) |
328 |
|
(123 |
) |
Appendix 1: Product shipments by region
(000'kt) |
3Q 19 |
2Q 19 |
3Q 18 |
9M 19 |
9M 18 |
Flat |
4,454 |
|
4,732 |
|
4,885 |
|
13,936 |
|
14,707 |
|
Long |
847 |
|
873 |
|
774 |
|
2,441 |
|
2,664 |
|
NAFTA |
5,135 |
|
5,438 |
|
5,512 |
|
15,892 |
|
16,874 |
|
Flat |
1,513 |
|
1,563 |
|
1,695 |
|
4,775 |
|
4,589 |
|
Long |
1,312 |
|
1,236 |
|
1,415 |
|
3,742 |
|
3,855 |
|
Brazil |
2,810 |
|
2,785 |
|
3,097 |
|
8,475 |
|
8,411 |
|
Flat |
7,225 |
|
8,824 |
|
6,855 |
|
24,696 |
|
22,112 |
|
Long |
2,333 |
|
2,883 |
|
2,798 |
|
8,037 |
|
8,701 |
|
Europe |
9,698 |
|
11,811 |
|
9,709 |
|
33,062 |
|
30,922 |
|
CIS |
1,657 |
|
2,064 |
|
1,879 |
|
5,338 |
|
5,606 |
|
Africa |
1,060 |
|
1,113 |
|
1,102 |
|
3,222 |
|
3,468 |
|
ACIS |
2,718 |
|
3,182 |
|
2,986 |
|
8,562 |
|
9,072 |
|
Note: “Others and eliminations” are not presented in the
table
Appendix 2a: Capital expenditures
(USDm) |
3Q 19 |
2Q 19 |
3Q 18 |
9M 19 |
9M 18 |
NAFTA |
210 |
|
144 |
|
155 |
|
536 |
|
425 |
|
Brazil |
68 |
|
80 |
|
59 |
|
232 |
|
142 |
|
Europe |
390 |
|
337 |
|
298 |
|
1,080 |
|
837 |
|
ACIS |
153 |
|
115 |
|
141 |
|
405 |
|
375 |
|
Mining |
107 |
|
125 |
|
116 |
|
347 |
|
342 |
|
Total |
941 |
|
869 |
|
781 |
|
2,757 |
|
2,149 |
|
Note: “Others” are not presented in the table
Appendix 2b: Capital expenditure projectsThe
following tables summarize the Company’s principal growth and
optimization projects involving significant capex.
Completed projects in most recent
quarter
Segment |
Site
/ unit |
Project |
Capacity / details |
Actual completion |
NAFTA |
Indiana Harbor (US) |
Indiana Harbor “footprint optimization project” |
Restoration of 80” HSM and upgrades at Indiana Harbor
finishing |
4Q 2018 (a) |
Ongoing projects
Segment |
Site / unit |
Project |
Capacity / details |
Forecasted completion |
ACIS |
ArcelorMittal
Kryvyi Rih (Ukraine) |
New LF&CC
2&3 |
Facilities
upgrade to switch from ingot to continuous caster route. Additional
billets of up to 290kt over ingot route through yield increase |
2019 |
Europe |
Sosnowiec (Poland) |
Modernization of Wire Rod Mill |
Upgrade rolling technology improving the mix of HAV products and
increase volume by 90kt |
2019 |
NAFTA |
Mexico |
New Hot strip mill |
Production capacity of 2.5Mt/year |
2020(b) |
NAFTA |
ArcelorMittal Dofasco (Canada) |
Hot Strip Mill Modernization |
Replace existing three end of life coilers with two states of the
art coilers and new runout tables |
2021(c) |
NAFTA |
Burns Harbor (US) |
New Walking Beam Furnaces |
Two new walking beam reheat furnaces bringing benefits on
productivity, quality and operational cost |
2021 |
Brazil |
ArcelorMittal Vega Do Sul |
Expansion project |
Increase hot dipped / cold rolled coil capacity and construction of
a new 700kt continuous annealing line (CAL) and continuous
galvanising line (CGL) combiline |
2021(d) |
Brazil |
Juiz de Fora |
Melt shop expansion |
Increase in meltshop capacity by 0.2Mt/year |
On hold(e) |
Brazil |
Monlevade |
Sinter plant, blast furnace and melt shop |
Increase in liquid steel capacity by 1.2Mt/year;Sinter feed
capacity of 2.3Mt/year |
On hold(e) |
Mining |
Liberia |
Phase 2 expansion project |
Increase production capacity to 15Mt/year |
Under review(f) |
- In support of the Company’s Action 2020 program, the footprint
optimization project at ArcelorMittal Indiana Harbor is now
complete, which has resulted in structural changes required to
improve asset and cost optimization. The plan involved idling
redundant operations including the #1 aluminize line, 84” hot strip
mill (HSM), and #5 continuous galvanizing line (CGL) and No.2 steel
shop (idled in 2Q 2017) whilst making further planned investments
totalling approximately $200 million including a new caster at No.3
steel shop (completed in 4Q 2016), restoration of the 80” hot strip
mill and Indiana Harbor finishing. The full project scope was
completed in 4Q 2018.
- On September 28, 2017, ArcelorMittal announced a major US$1
billion, three-year investment programme at its Mexican operations,
which is focused on building ArcelorMittal Mexico’s downstream
capabilities, sustaining the competitiveness of its mining
operations and modernizing its existing asset base. The programme
is designed to enable ArcelorMittal Mexico to meet the anticipated
increased demand requirements from domestic customers, realize in
full ArcelorMittal Mexico’s production capacity of 5.3 million
tonnes and significantly enhance the proportion of higher
added-value products in its product mix, in-line with the Company’s
Action 2020 plan. The main investment will be the construction of a
new hot strip mill. Upon completion, the project will enable
ArcelorMittal Mexico to produce c. 2.5 million tonnes of flat
rolled steel, long steel c. 1.8 million tonnes and the remainder
made up of semi-finished slabs. Coils from the new hot strip mill
will be supplied to domestic, non-auto, general industry customers.
The project commenced late 4Q 2017 and is expected to be completed
in 2020.
- Investment in ArcelorMittal Dofasco (Canada) to modernize the
hot strip mill. The project is to install two new state of the art
coilers and runout tables to replace three end of life coilers. The
strip cooling system will be upgraded and include innovative power
cooling technology to improve product capability. Project is
expected to be completed in 2021.
- In August 2018, ArcelorMittal announced the resumption of the
Vega Do Sul expansion to provide an additional 700kt of cold-rolled
annealed and galvanized capacity to serve the growing domestic
market. The three-year ~$0.3 billion investment programme to
increase rolling capacity with construction of a new continuous
annealing line and CGL combiline (and the option to add a ca. 100kt
organic coating line to serve construction and appliance segments),
and upon completion, will strengthen ArcelorMittal’s position in
the fast growing automotive and industry markets through Advanced
High Strength Steel products. The investments will look to
facilitate a wide range of products and applications whilst further
optimizing current ArcelorMittal Vega facilities to maximize site
capacity and its competitiveness, considering comprehensive digital
and automation technology. Project completion is expected in
2021.
- Although the Monlevade wire rod expansion project and Juiz de
Fora rebar expansion were completed in 2015, both projects are
currently on hold and are expected to be completed upon Brazil
domestic market recovery.
- ArcelorMittal had previously announced a Phase 2 project that
envisaged the construction of 15 million tonnes of concentrate
sinter fines capacity and associated infrastructure. The Phase 2
project was initially delayed due to the declaration of force
majeure by contractors in August 2014 due to the Ebola virus
outbreak in West Africa, and then reassessed following rapid iron
ore price declines over the ensuing period. ArcelorMittal Liberia
has now completed the detailed feasibility study to identify the
optimal concentration solution for utilizing the resources at
Tokadeh and its other deposits and has commenced detailed
engineering work in order to progress to the next stage of the
process. The investment case is now being assessed and in the final
stages of review.
Appendix 3: Debt repayment schedule as of September 30,
2019
(USD billion) |
2019 |
2020 |
2021 |
2022 |
2023 |
≥2024 |
Total |
Bonds |
— |
|
0.9 |
|
1.3 |
|
1.5 |
|
0.5 |
|
4.7 |
|
8.9 |
|
Commercial paper |
0.7 |
|
0.6 |
|
— |
|
— |
|
— |
|
— |
|
1.3 |
|
Other loans |
0.3 |
|
1.0 |
|
0.7 |
|
0.5 |
|
0.9 |
|
0.7 |
|
4.1 |
|
Total gross debt |
1.0 |
|
2.5 |
|
2.0 |
|
2.0 |
|
1.4 |
|
5.4 |
|
14.3 |
|
Appendix 4: Reconciliation of gross debt to net
debt
(USD million) |
Sept 30, 2019 |
Jun 30, 2019 |
Dec 31, 2018 |
Gross
debt (excluding that held as part of the liabilities held for
sale) |
14,305 |
|
13,830 |
|
12,483 |
|
Gross debt held as part of the liabilities held for sale |
— |
|
— |
|
77 |
|
Gross debt |
14,305 |
|
13,830 |
|
12,560 |
|
Less: |
|
|
|
Cash and cash equivalents |
(3,647 |
) |
(3,656 |
) |
(2,354 |
) |
Cash and cash equivalents held as part of the assets held for
sale |
— |
|
— |
|
(10 |
) |
Net debt (including that held as part of the assets and the
liabilities held for sale) |
10,658 |
|
10,174 |
|
10,196 |
|
|
|
|
|
Net debt / LTM EBITDA |
1.7 |
|
1.3 |
|
1.0 |
|
Appendix 5: Terms and definitionsUnless
indicated otherwise, or the context otherwise requires, references
in this earnings release report to the following terms have the
meanings set out next to them below:
Apparent steel consumption: calculated as the
sum of production plus imports minus exports.Average steel
selling prices: calculated as steel sales divided by steel
shipments.Cash and cash equivalents: represents
cash and cash equivalents, restricted cash and short-term
investments.Capex: represents the purchase of
property, plant and equipment and intangibles.Change in
cash and cash equivalents: represents the change in cash
and cash equivalents, excluding restricted cash. Crude
steel production: steel in the first solid state after
melting, suitable for further processing or for
sale.EBITDA: operating results plus depreciation,
impairment expenses and exceptional income/
(charges).EBITDA/tonne: calculated as EBITDA
divided by total steel shipments.Exceptional items (income
/ (charges)): relate to transactions that are significant,
infrequent or unusual and are not representative of the normal
course of business of the period.Foreign exchange and other
net financing (loss) / gain: include foreign currency
exchange impact, bank fees, interest on pensions, impairments of
financial assets, revaluation of derivative instruments and other
charges that cannot be directly linked to operating
results.Free cash flow (FCF): refers to net cash
provided by operating activities less capex.Gross
debt: long-term debt, plus short-term debt and IFRS 16
liabilities impact (including that held as part of the liabilities
held for sale).Liquidity: cash and cash
equivalents plus available credit lines excluding back-up lines for
the commercial paper program.LTIF: lost time
injury frequency rate equals lost time injuries per 1,000,000
worked hours, based on own personnel and
contractors.MT: refers to million metric
tonnesMarket-priced tonnes: represent amounts of
iron ore and coal from ArcelorMittal mines that could be sold to
third parties on the open market. Market-priced tonnes that are not
sold to third parties are transferred from the Mining segment to
the Company’s steel producing segments and reported at the
prevailing market price. Shipments of raw materials that do not
constitute market-priced tonnes are transferred internally and
reported on a cost-plus basis.Mining segment
sales: i) “External sales”: mined product sold to third
parties at market price; ii) “Market-priced tonnes”: internal sales
of mined product to ArcelorMittal facilities and reported at
prevailing market prices; iii) “Cost-plus tonnes” - internal sales
of mined product to ArcelorMittal facilities on a cost-plus basis.
The determinant of whether internal sales are reported at market
price or cost-plus is whether the raw material could practically be
sold to third parties (i.e. there is a potential market for the
product and logistics exist to access that market).Net
debt: long-term debt, plus short-term debt and IFRS 16
liabilities impact less cash and cash equivalents (including those
held as part of assets and liabilities held for sale).Net
debt/LTM EBITDA: refers to Net debt divided by last twelve
months (LTM) EBITDA calculation.Net interest
expense: includes interest expense less interest
incomeOn-going projects: refer to projects for
which construction has begun (excluding various projects that are
under development), even if such projects have been placed on hold
pending improved operating conditions.Operating
results: refers to operating
income/(loss).Operating segments: NAFTA segment
includes the Flat, Long and Tubular operations of USA, Canada and
Mexico. The Brazil segment includes the Flat, Long and Tubular
operations of Brazil and its neighbouring countries including
Argentina, Costa Rica and Venezuela. The Europe segment comprises
the Flat, Long and Tubular operations of the European business, as
well as Downstream Solutions. The ACIS segment includes the Flat,
Long and Tubular operations of Kazakhstan, Ukraine and South
Africa. Mining segment includes iron ore and coal
operations.Own iron ore production: includes total
of all finished production of fines, concentrate, pellets and lumps
and includes share of production.PMI: refers to
purchasing managers index (based on ArcelorMittal
estimates)Seaborne iron ore reference prices:
refers to iron ore prices for 62% Fe CFR
ChinaShipments: information at segment and group
level eliminates intra-segment shipments (which are primarily
between Flat/Long plants and Tubular plants) and inter-segment
shipments respectively. Shipments of Downstream Solutions are
excluded.Steel-only EBITDA: calculated as Group
EBITDA less Mining segment EBITDA.Steel-only
EBITDA/tonne: calculated as steel-only EBITDA divided by
total steel shipments.Working capital change (working
capital investment / release): Movement of change in
working capital - trade accounts receivable plus inventories less
trade and other accounts payable.YoY: refers to
year-on-year.
Footnotes
- The financial information in this press release has been
prepared consistently with International Financial Reporting
Standards (“IFRS”) as issued by the International Accounting
Standards Board (“IASB”) and as adopted by the European Union. The
interim financial information included in this announcement has
also been also prepared in accordance with IFRS applicable to
interim periods, however this announcement does not contain
sufficient information to constitute an interim financial report as
defined in International Accounting Standard 34, “Interim Financial
Reporting”. The numbers in this press release have not been
audited. The financial information and certain other information
presented in a number of tables in this press release have been
rounded to the nearest whole number or the nearest decimal.
Therefore, the sum of the numbers in a column may not conform
exactly to the total figure given for that column. In addition,
certain percentages presented in the tables in this press release
reflect calculations based upon the underlying information prior to
rounding and, accordingly, may not conform exactly to the
percentages that would be derived if the relevant calculations were
based upon the rounded numbers. This press release also includes
certain non-GAAP financial/alternative performance measures.
ArcelorMittal presents EBITDA, and EBITDA/tonne, which are non-GAAP
financial/alternative performance measures and calculated as shown
in the Condensed Consolidated Statement of Operations, as
additional measures to enhance the understanding of operating
performance. ArcelorMittal believes such indicators are relevant to
describe trends relating to cash generating activity and provides
management and investors with additional information for comparison
of the Company’s operating results to the operating results of
other companies. Segment information presented in this press
release are prior to inter-segment eliminations and certain
adjustments made to operating result of the segments to reflect
corporate costs, income from non-steel operations (e.g., logistics
and shipping services) and the elimination of stock margins between
the segments. ArcelorMittal also presents net debt and change in
working capital as additional measures to enhance the understanding
of its financial position, changes to its capital structure and its
credit assessment. The Company’s guidance as to its working capital
release (or the change in working capital included in net cash
provided by operating activities) for the full year 2019 is based
on the same accounting policies as those applied in the Company’s
financial statements prepared in accordance with IFRS.
ArcelorMittal also presents free cash flow (FCF), which is a
non-GAAP financial/alternative performance measure calculated as
shown in the Condensed Consolidated Statement of Cash flows,
because it believes it is a useful supplemental measure for
evaluating the strength of its cash generating capacity. The
Company also presents the ratio of net debt to EBITDA for the last
twelve month period, which investors may find useful in
understanding the Company's ability to service its debt. Non-GAAP
financial/alternative performance measures should be read in
conjunction with, and not as an alternative for, ArcelorMittal's
financial information prepared in accordance with IFRS. Such
non-GAAP/alternative performance measures may not be comparable to
similarly titled measures applied by other companies.
- Health and safety performance inclusive of ArcelorMittal Italia
and related facilities (“ArcelorMittal Italia”) (consolidated as
from November 1, 2018) was 1.36x for 3Q 2019 and 1.26x for 2Q 2019.
Health and safety figures excluding ArcelorMittal Italia were 0.82x
for 3Q 2019 as compared to 0.68x for 2Q 2019. From 1Q 2019 onwards,
the methodology and metrics used to calculate health and safety
figures for ArcelorMittal Italia have been harmonized with those of
ArcelorMittal.
- Impairment charges for 2Q 2019 were $947 million related to the
remedy asset sales for the ArcelorMittal Italia acquisition ($347
million) and impairment of the fixed assets of ArcelorMittal USA
($600 million) following a sharp decline in steel prices and high
raw material costs. Impairment charges for 9M 2019 were $1.1
billion related to the remedy asset sales for the ArcelorMittal
Italia acquisition ($0.5 billion) and impairment of the fixed
assets of ArcelorMittal USA ($0.6 billion) following a sharp
decline in steel prices and high raw material costs.
- ArcelorMittal has applied IFRS 16 "Leases" as of January 1,
2019. Due to the transition option selected, the prior-period data
has not been restated. IFRS 16 "Leases" provides a single lessee
accounting model requiring lessees to recognize right-of-use assets
and lease liabilities for all non-cancellable leases except for
short-term leases and low value assets. The right-of-use assets are
recognized as property, plant and equipment and measured on January
1, 2019 at an amount equal to the lease liability recognized as
debt (short term $0.3 billion and long term $0.9 billion impact as
of January 1, 2019) and measured on the basis of the net present
value of remaining lease payments. On January 1, 2019 net debt
increased accordingly by $1.2 billion following the adoption of
IFRS 16 "Lease" standard. The recognition of the lease expense in
EBITDA for leases previously accounted for as operating leases is
replaced by a depreciation expense related to the right-of-use
assets and an interest expense reflecting the amortization of the
lease liability. In addition, cash payments relating to the
repayment of the principal amount of the lease liability are
presented in the consolidated statements of cash flows as outflows
from financing activities while lease payments for operating leases
were previously recognized as outflows from operating
activities.
- On April 20, 2018, following the approval by the Brazilian
antitrust authority - CADE of the combination of ArcelorMittal
Brasil’s and Votorantim’s long steel businesses in Brazil subject
to the fulfilment of divestment commitments, ArcelorMittal Brasil
agreed to dispose of its two production sites of Cariacica and
Itaúna, as well as some wire drawing equipment of ArcelorMittal
Brasil and ArcelorMittal Sul-Fluminense. The sale was completed
early May 2018 to the Mexican Group Simec S.A.B. de CV. A second
package of some wire drawing equipment of ArcelorMittal Brasil and
ArcelorMittal Sul-Fluminense was sold to the company Aço Verde do
Brasil as part of CADE's conditional approval.
- In July 2018, as a result of a settlement process, the Company
and the German Federal Cartel Office agreed to a €118 million ($146
million) fine to be paid by ArcelorMittal Commercial Long
Deutschland GmbH ending an investigation that began in the first
half of 2016 into antitrust violations concerning the ArcelorMittal
entities that were under investigation. The payment was made in
August 2018.
- ArcelorMittal Mines Canada, otherwise known as ArcelorMittal
Mines and Infrastructure Canada.
- On December 19, 2018, ArcelorMittal signed a $5,500,000,000
Revolving Credit Facility, with a five-year maturity plus two
one-year extension options (i.e. the options to extend are in the
first and second years, so at end 2019 and at end 2020). The
facility will replace the $5,500,000,000 revolving credit facility
agreement signed April 30, 2015 and amended December 21, 2016, and
will be used for the general corporate purposes of the
ArcelorMittal group. The facility gives ArcelorMittal considerably
improved terms over the former facility, and extends the average
maturity date by approximately three years. As of September 30,
2019, the $5.5 billion revolving credit facility was fully
available.
- Assets and liabilities held for sale, as of September 30, 2019
and as of June 30, 2019 are related to the carrying value of the
USA long product facilities at Steelton (“Steelton”). Assets and
liabilities held for sale, as of December 31, 2018, include the
ArcelorMittal Italia remedy package assets (as previously disclosed
in the 1Q 2018 earnings release) and the USA long product
facilities at Steelton.
- Relates to the rollover of the Indian rupee hedge at market
price which protects the dollar funds needed for the Essar
transaction as per the resolution plan approved by the Committee of
Creditors and the National Company Law Tribunal in Ahmedabad).
- Weaker global steel demand has contributed to further price and
margin compression during 3Q 2019. Correspondingly the demand
for higher priced iron ore direct charge materials (i.e., pellets
and higher-grade ore) decreased and related quality premia declined
in line with the market conditions.
Third quarter 2019 earnings analyst conference
call
ArcelorMittal will hold a conference call hosted
by Heads of Finance and Investor Relations for members of the
investment community to discuss the three-month and nine-month
periods ended September 30, 2019 on: Thursday November 7,
2019 at 9.30am US Eastern time; 14.30pm London time and 15.30pm
CET.
The dial in numbers are: |
|
|
Location |
Toll free
dial in numbers |
Local dial in
numbers |
Participant |
UK
local: |
0800 0515
931 |
+44 (0)203 364
5807 |
14858322# |
US local: |
1 86 6719 2729 |
+1 24 0645 0345 |
14858322# |
France: |
0800 914780 |
+33 1 7071 2916 |
14858322# |
Germany: |
0800 965 6288 |
+49 692 7134 0801 |
14858322# |
Spain: |
90 099 4930 |
+34 911 143436 |
14858322# |
Luxembourg: |
800 26908 |
+352 27 86 05 07 |
14858322# |
A
replay of the conference call will be available for one week by
dialling: +49 (0) 1805 2047 088; Access code 2524629# |
Forward-Looking StatementsThis document may
contain forward-looking information and statements about
ArcelorMittal and its subsidiaries. These statements include
financial projections and estimates and their underlying
assumptions, statements regarding plans, objectives and
expectations with respect to future operations, products and
services, and statements regarding future performance.
Forward-looking statements may be identified by the words
“believe”, “expect”, “anticipate”, “target” or similar expressions.
Although ArcelorMittal’s management believes that the expectations
reflected in such forward-looking statements are reasonable,
investors and holders of ArcelorMittal’s securities are cautioned
that forward-looking information and statements are subject to
numerous risks and uncertainties, many of which are difficult to
predict and generally beyond the control of ArcelorMittal, that
could cause actual results and developments to differ materially
and adversely from those expressed in, or implied or projected by,
the forward-looking information and statements. These risks and
uncertainties include those discussed or identified in the filings
with the Luxembourg Stock Market Authority for the Financial
Markets (Commission de Surveillance du Secteur Financier) and the
United States Securities and Exchange Commission (the “SEC”) made
or to be made by ArcelorMittal, including ArcelorMittal’s latest
Annual Report on Form 20-F on file with the SEC. ArcelorMittal
undertakes no obligation to publicly update its forward-looking
statements, whether as a result of new information, future events,
or otherwise.
About ArcelorMittalArcelorMittal is the world's
leading steel and mining company, with a presence in 60 countries
and an industrial footprint in 18 countries. Guided by a philosophy
to produce safe, sustainable steel, we are the leading supplier of
quality steel in the major global steel markets including
automotive, construction, household appliances and packaging, with
world-class research and development and outstanding distribution
networks.
Through our core values of sustainability, quality and
leadership, we operate responsibly with respect to the health,
safety and wellbeing of our employees, contractors and the
communities in which we operate. For us, steel is the fabric of
life, as it is at the heart of the modern world from railways to
cars and washing machines. We are actively researching and
producing steel-based technologies and solutions that make many of
the products and components people use in their everyday lives more
energy efficient.
We are one of the world’s five largest producers of iron ore and
metallurgical coal. With a geographically diversified portfolio of
iron ore and coal assets, we are strategically positioned to serve
our network of steel plants and the external global market. While
our steel operations are important customers, our supply to the
external market is increasing as we grow. In 2018, ArcelorMittal
had revenues of $76.0 billion and crude steel production of 92.5
million metric tonnes, while own iron ore production reached 58.5
million metric tonnes.
ArcelorMittal is listed on the stock exchanges of New York (MT),
Amsterdam (MT), Paris (MT), Luxembourg (MT) and on the Spanish
stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS).
For more information about ArcelorMittal please
visit: http://corporate.arcelormittal.com/
EnquiriesArcelorMittal investor relations:
Europe: +44 207 543 1128; Americas: +1 312 899 3985; Retail: +44
207 543 1156; SRI: +44 207 543 1156 and Bonds/credit: +33 1 71 92
10 26.
ArcelorMittal corporate communications (E-mail:
press@arcelormittal.com) +44 0207 629 7988. Contact: Paul Weigh +44
203 214 2419
- ArcelorMittal reports third quarter 2019 and nine months 2019
results
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