ArcelorMittal Trimmed Operating Loss in Q1 2020
Steel News | 2020-05-08 08:51:47
The press release issued by the company says that planned capex for the current year has been lowered from the previous guidance of $3.2 billion to $2.4 billion.
By Paul Ploumis
SEATTLE (Scrap Monster): Luxembourg-based integrated steelmaker ArcelorMittal reported results for the three-month period ended March 31, 2020. The company had reported significant surge in steel shipments in 2019.
The company reported improved operating performance during the quarter, trimming its operating loss from $1.5 billion in Q4 2019 to $0.4 billion, reflecting the positive market developments prior to the escalation of the pandemic. Also, EBITDA surged higher by 4.5% from the prior quarter to $1.0 billion. It reported net loss of $1.1 billion. The liquidity at the end of the quarter stood at $9.8 billion.
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The economic activity and steel market conditions witnessed serious deterioration following restrictive measures, including complete shutdown of manufacturing activities, by various governments. The company responded to the situation by announcing various cost reduction measures and making necessary production adjustments.
The press release issued by the company says that planned capex for the current year has been lowered from the previous guidance of $3.2 billion to $2.4 billion. As part of cost savings measures, the company has decided to suspend dividend payments until market conditions return to normalcy.
Lakshmi N. Mittal, Chairman and CEO, ArcelorMittal noted that Covid-19 pandemic impacts have considerably overshadowed the Q1 operating performance. The remainder of the year too is expected to be challenging, he added.
