ArcelorMittal Posted Robust Results Despite Lower Steel Shipments

SEATTLE (Scrap Monster): ArcelorMittal- the world’s leading integrated steel and mining company, announced results for the quarter ended 30^th September, 2021. The company swung to net profit, driven by surge in sales. It reported improved operating results during the quarter, despite lower steel shipment volumes.

According to company press release, the operating income for the quarter stood at $5.3 billion, compared to $4.4 billion in the prior quarter. The EBITDA of $6.1 billion was almost 20% higher than Q2 2021. The net income, at $4.6 billion, hit the highest level since 2008. Meantime, the crude steel production by the company dropped marginally from 17.8 Mt to 17.2 Mt over the quarter. Also, the steel shipments dropped from 16.1 Mt to 14.6 Mt.

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The investment in working capital during the quarter was $2.9 billion. ArcelorMittal reported free cash flow of $1.6 billion in Q3 2021, whereas the gross debt declined by $1 billion to $8.2 billion. Also, net debt dipped to $3.9 billion, which is the lowest since 2008.

Commenting on the results, Aditya Mittal, Chief Executive Officer, ArcelorMittal noted that the quarterly results were supported by the continuing strong price environment. However, the safety results were not encouraging during the quarter. Going forward, the company will focus on improving safety performance to eliminate all fatalities and boosting decarbonisation initiatives to attain ambitious 2030 target.