ArcelorMittal Net Loss Stretched Further in Q3 2019
The Essar Steel acquisition is expected to close in the fourth quarter of the current year.
SEATTLE (Scrap Monster): Luxembourg-based leading steelmaker ArcelorMittal reported results for the three-month and nine-month period ended September 30, 2019. The company reported net loss of $539 million in third quarter 2019, primarily on account of lower steel shipments and prices and escalating raw material costs. It must be noted that steelmaker has reported loss of $400 million in the quarter before that.
ArcelorMittal operating income in Q3 2019 was $0.30 billion, as compared to the operating loss of $0.20 billion the prior quarter. The EBITDA for the quarter plunged to $1.1 billion, falling sharply by approximately 32%, compared to $1.6 billion in 2Q 2019. When compared with the previous quarter, steel shipments have witnessed a decline by 7.3% to total 20.2 million tonnes (Mt).
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Meantime, the total steel shipments during the initial nine-month period of the year totalled 64.8 Mt, marginally higher by 1.8%, compared to 63.6 Mt in Jan-Sep ’18. The European steel shipments surged higher by 6.9%. The lower average steel selling prices led to 4.5% decline in sales for the nine-month period in 2019. The sales declined to $55.1 billion, as compared with $57.7 billion last year.
Commenting on the results, Laxmi Mittal, Chairman, ArcelorMittal said that Q3 2019 saw tough market conditions, mainly attributed by low steel prices and high raw material costs. Under these circumstances, the company remains focused on initiatives to boost performance and reduce costs. The Essar Steel acquisition is expected to close in the fourth quarter of the current year, he noted.
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