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ArcelorMittal reports 2017 results


World’s leading integrated steel and mining company ArcelorMittal has announced results for twelve month periods ended December 31, 2017.

FY 2017 operating income of $5.4 billion (+30.6% YoY); operating income of $1.2 billion in 4Q 2017 (+52.7% YoY)

FY 2017 EBITDA of $8.4 billion (+34.4% YoY); EBITDA of $2.1 billion in 4Q 2017 (+28.9% YoY)

FY 2017 net income of $4.6 billion, higher as compared to $1.8 billion for FY 2016

FY 2017 steel shipments of 85.2Mt (+1.6% YoY); 4Q 2017 steel shipments of 21.0Mt (+4.7% YoY)

FY 2017 iron ore shipments of 57.9Mt (+3.5% YoY), of which 35.7Mt shipped at market prices (+6.1% YoY); 4Q 2017 iron ore shipments of 14.3Mt (+5.4% YoY), of which 8.4Mt shipped at market prices (+3.8% YoY)

Gross debt of $12.9 billion as of December 31, 2017. Net debt decreased to $10.1 billion as of December 31, 2017, lower as compared to $12.0 billion as of September 30, 2017 and $11.1 billion as of December 31, 2016

Mr. Lakshmi N Mittal, ArcelorMittal Chairman and CEO, said “The combination of improving market fundamentals and delivery against our strategic objectives contributed to a successful year for the Company. Action 2020 has delivered half of its targeted EBITDA gains and we have succeeded in transforming the Company’s balance sheet.  While we will retain a deleveraging bias, we are also investing selectively in opportunities that will strengthen the foundations of sustainable value creation. The market environment remains supportive but the industry must continue to address the twin challenges of overcapacity and unfair trade.”

Outlook and guidance
Market conditions are favorable. The demand environment remains positive (as evidenced by the continued high readings from the ArcelorMittal weighted PMI) and steel spreads remain healthy.

The Company expects cash needs of the business (capex, interest, cash taxes, pensions and other cash costs) excluding working capital investment to increase in 2018 to approximately $5.6 billion. The expected increase in capex to $3.8 billion in 2018 from $2.8 billion in 2017 largely reflects the Mexico HSM project, anticipated ILVA capex, as well as other projects.

Source : Strategic Research Institute, SteelGuru