ArcelorMittal S.A.: ArcelorMittal reports second quarter 2024 and half year 2024 results
ArcelorMittal (MT), the leading steel and mining company, reported Q2 2024 and H1 2024 results. Key points include:
Q2 2024: EBITDA of $1.9bn, net income of $0.5bn, steel shipments up 3.2% vs. Q1 2024. Cash flow reinvested in growth and returns to shareholders. Net debt at $5.2bn.
H1 2024: Sales fell 12.3% to $32.5bn, net income declined to $1.4bn. Operating income at $2.1bn, EBITDA at $3.8bn.
Strategic Developments: Projects in Brazil and India progressing, expected to boost EBITDA by $1.8bn by end of 2026. Acquisitions in Italy and Spain add $0.2bn to 2025 EBITDA potential.
Outlook: Market conditions expected to improve in 2H 2024. Capex for 2024 between $4.5bn-$5.0bn. Free cash flow outlook remains positive.
Key Financials: Q2 Sales $16.2bn, Operating Income $1.0bn, EPS $0.63. H1 Sales $32.5bn, Operating Income $2.1bn, EPS $1.80.
ArcelorMittal (MT), la principale azienda siderurgica e mineraria, ha riportato i risultati del secondo trimestre 2024 e del primo semestre 2024. I punti chiave includono:
Q2 2024: EBITDA pari a 1,9 miliardi di dollari, utile netto di 0,5 miliardi di dollari, spedizioni di acciaio in aumento del 3,2% rispetto al Q1 2024. Flusso di cassa reinvestito in crescita e ritorni agli azionisti. Debito netto pari a 5,2 miliardi di dollari.
H1 2024: Le vendite sono diminuite del 12,3%, raggiungendo 32,5 miliardi di dollari, mentre l'utile netto è sceso a 1,4 miliardi di dollari. L'utile operativo è stato di 2,1 miliardi di dollari, con EBITDA a 3,8 miliardi di dollari.
Sviluppi Strategici: Progetti in Brasile e India in corso, previsti per aumentare l'EBITDA di 1,8 miliardi di dollari entro la fine del 2026. Acquisizioni in Italia e Spagna aggiungeranno 0,2 miliardi di dollari al potenziale EBITDA del 2025.
Prospettive: Le condizioni di mercato dovrebbero migliorare nel secondo semestre del 2024. Gli investimenti in capitale per il 2024 sono stimati tra 4,5 miliardi e 5,0 miliardi di dollari. Le previsioni di flusso di cassa libero rimangono positive.
Dati Finanziari Chiave: Vendite Q2 16,2 miliardi di dollari, Utile Operativo 1,0 miliardi di dollari, EPS 0,63. Vendite H1 32,5 miliardi di dollari, Utile Operativo 2,1 miliardi di dollari, EPS 1,80.
ArcelorMittal (MT), la empresa líder en acero y minería, informó sobre los resultados del segundo trimestre de 2024 y del primer semestre de 2024. Los puntos clave incluyen:
Q2 2024: EBITDA de 1,9 mil millones de dólares, ingreso neto de 0,5 mil millones de dólares, envíos de acero aumentaron un 3,2% en comparación con el Q1 2024. El flujo de caja se reinvirtió en crecimiento y retornos para los accionistas. La deuda neta es de 5,2 mil millones de dólares.
H1 2024: Las ventas cayeron un 12,3%, alcanzando 32,5 mil millones de dólares, y el ingreso neto disminuyó a 1,4 mil millones de dólares. El ingreso operativo fue de 2,1 mil millones de dólares, con EBITDA de 3,8 mil millones de dólares.
Desarrollos Estratégicos: Proyectos en Brasil e India avanzan, se espera que aumenten el EBITDA en 1,8 mil millones de dólares para finales de 2026. Las adquisiciones en Italia y España añadirán 0,2 mil millones de dólares al potencial EBITDA de 2025.
Perspectivas: Se espera que las condiciones del mercado mejoren en el segundo semestre de 2024. La inversión de capital para 2024 se estima entre 4,5 mil millones y 5,0 mil millones de dólares. Las proyecciones de flujo de caja libre siguen siendo positivas.
Datos Financieros Clave: Ventas Q2 16,2 mil millones de dólares, Ingreso Operativo 1,0 mil millones de dólares, EPS 0,63. Ventas H1 32,5 mil millones de dólares, Ingreso Operativo 2,1 mil millones de dólares, EPS 1,80.
아르셀로미탈 (MT), 선도적인 철강 및 광산 회사가 2024년 2분기 및 상반기 실적을 발표했습니다. 주요 내용은 다음과 같습니다:
2024년 2분기: 19억 달러의 EBITDA, 5억 달러의 순이익, 2024년 1분기 대비 철강 출하량 3.2% 증가. 현금 흐름이 성장과 주주에 대한 수익에 재투자됨. 순부채는 52억 달러입니다.
2024년 상반기: 매출이 12.3% 감소하여 325억 달러에 달하며, 순이익은 14억 달러로 감소했습니다. 운영 이익은 21억 달러, EBITDA는 38억 달러입니다.
전략적 개발: 브라질과 인도에서의 프로젝트가 진행 중이며, 2026년 말까지 18억 달러의 EBITDA 증대를 예상하고 있습니다. 이탈리아와 스페인에서의 인수합병이 2025년 EBITDA 잠재력에 2억 달러를 추가합니다.
전망: 2024년 하반기 시장 상황이 개선될 것으로 예상됩니다. 2024년 자본 지출은 45억 달러에서 50억 달러 사이로 예상됩니다. 자유 현금 흐름 전망은 긍정적입니다.
주요 재무 사항: 2분기 매출 162억 달러, 운영 이익 10억 달러, 주당 순이익(EPS) 0.63. 상반기 매출 325억 달러, 운영 이익 21억 달러, EPS 1.80.
ArcelorMittal (MT), la principale entreprise de sidérurgie et d'exploitation minière, a publié les résultats du 2e trimestre 2024 et du 1er semestre 2024. Les points clés incluent:
Q2 2024: EBITDA de 1,9 milliard de dollars, bénéfice net de 0,5 milliard de dollars, expéditions d'acier en hausse de 3,2% par rapport au Q1 2024. Flux de trésorerie réinvesti dans la croissance et les rendements pour les actionnaires. Dette nette de 5,2 milliards de dollars.
H1 2024: Les ventes ont chuté de 12,3% à 32,5 milliards de dollars, le bénéfice net a diminué à 1,4 milliard de dollars. Le résultat d'exploitation s'élève à 2,1 milliards de dollars, avec un EBITDA de 3,8 milliards de dollars.
Développements stratégiques: Projets au Brésil et en Inde en cours, qui devraient augmenter l'EBITDA de 1,8 milliard de dollars d'ici la fin 2026. Les acquisitions en Italie et en Espagne ajouteront 0,2 milliard de dollars au potentiel d'EBITDA de 2025.
Perspectives: Les conditions du marché devraient s'améliorer au 2e semestre 2024. Les investissements en capital pour 2024 devraient se situer entre 4,5 milliards et 5,0 milliards de dollars. Les perspectives de flux de trésorerie libre restent positives.
Données financières clés: Ventes Q2 16,2 milliards de dollars, résultat opérationnel 1,0 milliard de dollars, BPA 0,63. Ventes H1 32,5 milliards de dollars, résultat opérationnel 2,1 milliards de dollars, BPA 1,80.
ArcelorMittal (MT), das führende Unternehmen in der Stahl- und Bergbauindustrie, hat die Ergebnisse des 2. Quartals 2024 und des 1. Halbjahres 2024 veröffentlicht. Die wichtigsten Punkte sind:
Q2 2024: EBITDA von 1,9 Milliarden Dollar, Nettogewinn von 0,5 Milliarden Dollar, Stahlversand um 3,2% im Vergleich zum Q1 2024 gestiegen. Cashflow wurde in Wachstum und Rendite für Aktionäre reinvestiert. Nettoverschuldung beträgt 5,2 Milliarden Dollar.
H1 2024: Umsatz sank um 12,3% auf 32,5 Milliarden Dollar, der Nettogewinn fiel auf 1,4 Milliarden Dollar. Betriebsgewinn lag bei 2,1 Milliarden Dollar, EBITDA betrug 3,8 Milliarden Dollar.
Strategische Entwicklungen: Projekte in Brasilien und Indien schreiten voran und sollen bis Ende 2026 das EBITDA um 1,8 Milliarden Dollar steigern. Übernahmen in Italien und Spanien erhöhen das EBITDA-Potenzial für 2025 um 0,2 Milliarden Dollar.
Ausblick: Es wird erwartet, dass sich die Marktbedingungen im 2. Halbjahr 2024 verbessern. Die Investitionen für 2024 liegen zwischen 4,5 Milliarden und 5,0 Milliarden Dollar. Der Ausblick für den freien Cashflow bleibt positiv.
Wichtige Kennzahlen: Q2-Umsatz 16,2 Milliarden Dollar, Betriebsgewinn 1,0 Milliarden Dollar, EPS 0,63. H1-Umsatz 32,5 Milliarden Dollar, Betriebsgewinn 2,1 Milliarden Dollar, EPS 1,80.
- Q2 2024 steel shipments increased by 3.2% vs. Q1
- Net debt remains strong at $5.2bn
- Strategic projects estimated to add $1.8bn to EBITDA by 2026
- Acquisitions in Italy and Spain to add $0.2bn to 2025 EBITDA
- Sales for H1 2024 decreased by 12.3% to $32.5bn
- EBITDA for H1 2024 decreased by 25.7% to $3.8bn
- Net income for H1 2024 declined to $1.4bn
- Operating income for H1 2024 decreased by 32.1% to $2.1bn
Insights
ArcelorMittal's Q2 2024 results demonstrate resilience amid challenging market conditions. The company reported EBITDA of
Key financial highlights include:
- Net income of
$504 million in Q2, down from$938 million in Q1, largely due to non-cash mark-to-market adjustments on Vallourec shares - Net debt increased to
$5.2 billion at quarter-end, up from$2.9 billion at the end of 2023 - Free cash flow of
$0.1 billion in Q2, impacted by$1.0 billion in capex
The company's strategic growth projects are progressing well, with an estimated potential to add
ArcelorMittal maintains a strong focus on shareholder returns, with a
Looking ahead, ArcelorMittal expects market conditions to improve, with higher apparent demand in H2 2024 compared to H2 2023. The company anticipates positive free cash flow in 2024 and beyond, supported by the completion of strategic growth projects and working capital improvements.
ArcelorMittal's Q2 2024 results reflect the current challenges in the global steel market, particularly the impact of China's excess production and aggressive exports. The company notes that current market conditions are unsustainable, with steel prices in both Europe and the US below marginal cost.
Key market insights include:
- Steel shipments increased by
3.2% compared to Q1 2024, indicating some resilience in demand - Average steel selling prices declined, particularly in the Brazil segment (
-6.7% ) and Europe (-1.7% ) - The company expects apparent demand to be higher in H2 2024 compared to H2 2023, which was impacted by destocking, particularly in Europe
- Low absolute inventory levels, especially in Europe, suggest potential for restocking activity once real demand begins to recover
ArcelorMittal's strategic focus on low-carbon steel solutions is gaining traction, with XCarb® products on track to double sales in 2024 compared to 2023. The launch of the HyMatch® steel brand for hydrogen transport pipelines and the acquisition of Italpannelli's businesses demonstrate the company's commitment to expanding its sustainable solutions portfolio.
The ongoing diversification strategy appears to be paying off, helping to offset challenges in specific markets. For instance, while the North American segment was impacted by an illegal blockade in Mexico, the European segment showed improvement due to lower costs.
Overall, while current market conditions are challenging, ArcelorMittal's strategic investments and focus on low-carbon solutions position it well for potential market recovery and long-term growth in sustainable steel demand.
Luxembourg, August 1, 2024 - ArcelorMittal (referred to as “ArcelorMittal” or the “Company” or the "Group") (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 six-month periods ended June 30, 2024.
2Q 2024 key highlights:
Health and safety focus: Protecting employee health and safety remains the overarching priority of the Company; the Company-wide audit of safety by dss+ remains on track for completion by 3Q 2024 and will support our pathway to zero serious injuries and fatalities; LTIF2 rate of 0.57 in 2Q 2024 and 0.59 in 1H 2024
Resilient operating results: Benefits of diversification were apparent in the second quarter, with higher steel shipments (+
Net income impacted by non-cash items:
Financial strength: Net debt of
Cash flow being reinvested for growth and shareholder returns: over the past 12 months, the Company has generated investable cash flow18 of
Key developments towards strategic objectives:
Organic growth: As expected the Vega CMC (Brazil) project is ramping up and the 1GW renewables project in India has begun commissioning. Further projects nearing completion include: Calvert EAF (US), Serra Azul (Brazil), electrical steel (France) and capacity expansion in Liberia. Strategic growth projects are estimated to add
Asset portfolio: The Sustainable Solutions segment is making progress towards the targeted doubling of EBITDA in the next 5 years. The Company has acquired Italpannelli’s Italian and Spanish businesses, building on ArcelorMittal’s exposure to insulation panels for low carbon emissions buildings. Together with Vallourec (which will be reported within India and JV segment), these acquisitions are estimated to add a further
Consistent shareholder returns: In addition to its growing base dividend (
Outlook
Company believes current market conditions are unsustainable: China’s excess production relative to demand is resulting in very low domestic steel spreads and aggressive exports; steel prices in both Europe and US are below the marginal cost. The Company expects apparent demand to be higher in 2H’24 vs. 2H’23 (which was impacted by destocking particularly in Europe). As absolute inventory levels remain low, particularly in Europe, the Company remains optimistic that restocking activity will occur once real demand begins to recover
Disciplined capex investment: Capex in 2024 continues to be expected within the range of
Positive free cash flow outlook in 2024 and beyond: The Company expects the
Financial highlights (on the basis of IFRS1):
| (USDm) unless otherwise shown | 2Q 24 | 1Q 24 | 2Q 23 | 1H 24 | 1H 23 |
| Sales | 16,249 | 16,282 | 18,606 | 32,531 | 37,107 |
| Operating income | 1,046 | 1,072 | 1,925 | 2,118 | 3,117 |
| Net income attributable to equity holders of the parent | 504 | 938 | 1,860 | 1,442 | 2,956 |
| Basic earnings per common share (US$) | 0.63 | 1.16 | 2.21 | 1.80 | 3.47 |
| Operating income/tonne (US$/t) | 75 | 80 | 136 | 77 | 109 |
| EBITDA3 | 1,862 | 1,956 | 2,998 | 3,818 | 5,138 |
| EBITDA /tonne (US$/t) | 134 | 145 | 211 | 140 | 179 |
| Crude steel production (Mt) | 14.7 | 14.4 | 14.7 | 29.1 | 29.2 |
| Steel shipments (Mt) | 13.9 | 13.5 | 14.2 | 27.3 | 28.7 |
| Total Group iron ore production (Mt) | 9.5 | 10.2 | 10.5 | 19.7 | 21.3 |
| Iron ore production (Mt) (AMMC and Liberia only) | 5.9 | 6.5 | 6.4 | 12.4 | 13.1 |
| Iron ore shipment (Mt) (AMMC and Liberia only) | 6.2 | 6.3 | 6.6 | 12.5 | 14.0 |
| Weighted average common shares outstanding (in millions) | 794 | 809 | 842 | 802 | 851 |
Commenting, Aditya Mittal, ArcelorMittal Chief Executive Officer, said:
“The Company continued to make good progress in the first half of the year. Starting with safety, the comprehensive dss+ audit of all matters safety related is nearing completion. There has been excellent engagement at all levels across the Group and no doubt the learnings and recommendations will be instrumental in helping us achieve our safety goals.
“Our pipeline of attractive strategic growth projects, which combined with recent acquisitions, have the estimated potential to increase EBITDA by
“Demand continues to grow for our XCarb recycled and renewably produced steels, which are currently shining brightly on the Eiffel Tower and Arc de Triomphe in the form of the Olympic “Spectacular” rings and Paralympic “Agitos”. As important as our low carbon steel products, are our climate solutions. We have recently launched the new HyMatch® brand for hydrogen transport pipelines supporting the implementation of hydrogen infrastructure globally and the recent acquisition of Italpannelli’s Italian and Spanish businesses, builds our exposure to the attractive insulation panels market for low carbon emissions buildings. We also continue to progress our decarbonization agenda, with groundbreaking having taken place on the new 1.1 million tonne electric arc furnace in Gijon.
“Financially, performance in the second quarter was broadly similar to the first, reflecting the continued subdued economic sentiment. Inventories are at a low level which will support apparent steel demand growth ex-China of between
Safety and sustainable development
Health and Safety focus:
Protecting employee health and safety remains the overarching priority of the Company. LTIF rate of 0.57 in 2Q 2024 (vs 0.61 in 1Q 2024 and 0.73 in 2Q 2023).
The Company-wide safety audit by dss+, which encompasses the three pillars of fatality prevention standards, process risk management, and policies, processes and governance, is progressing on schedule. The groundwork was completed at the end of July and included:
- 155 onsite audits of the fatality prevention standards covering the company’s three main occupational risks (injured by a machine that was not properly isolated or turned off, crushed by a vehicle or moving machine, and falling from height);
- Process safety risk management assessments of 14 of our highest priority countries and assets (including JVs);
- ~300 interviews with the ArcelorMittal Board, senior leadership, health and safety personnel and unions;
- ~100 focus groups on practical perception of safety issues (>70 took place onsite in 12 plants);
- Over 100 observations of key meetings to understand how health and safety is discussed at all levels e.g. the Board Sustainability Committee to production meetings; and
- Review of policies and other documentation to understand how effectively health and safety is governed and communicated.
Key recommendations will be published following completion of the audit. There is a clear engagement and full support from leadership across the organization to make ArcelorMittal a better, safer Company.
Own personnel and contractors – Lost Time Injury Frequency rate
| 2Q 24 | 1Q 24 | 2Q 23 | 1H 24 | 1H 23 | |
| North America | 0.31 | 0.00 | 0.25 | 0.14 | 0.18 |
| Brazil | 0.15 | 0.08 | 0.30 | 0.13 | 0.32 |
| Europe | 1.06 | 1.28 | 1.51 | 1.14 | 1.38 |
| Sustainable Solutions | 1.09 | 0.89 | 1.10 | 0.98 | 0.95 |
| Mining | 0.15 | 0.16 | 0.00 | 0.16 | 0.11 |
| Others | 0.47 | 0.76 | 0.60 | 0.60 | 0.62 |
| Total | 0.57 | 0.61 | 0.73 | 0.59 | 0.70 |
Sustainable development highlights14:
- The Company is progressing the decarbonization projects globally to ensure we maximize our competitive advantage and deliver an acceptable return on investment.
- The construction of the 1.1Mt EAF at the Gijón plant has started, representing the first in ArcelorMittal Europe’s decarbonization program. The
€0.2 billion investment in state-of-the-art technology will enable ArcelorMittal to produce high added value rails and wire rod (expected EBITDA$50 million ) - The 1GW India renewables project has begun commissioning. Power evacuation (substations and transmission lines) are largely complete. The
$0.7 billion capex project with an expected$0.1 billion of EBITDA (including equity share of the net income benefit to AMNS India JV) will provide cost competitive and stable supply of round-the-clock renewable power for AMNS India, representing over20% of AMNS India’s Hazira plants energy requirements. - ArcelorMittal continues to engage with Country Governments to access low carbon energy for ArcelorMittal group at competitive prices for its DRI EAF projects. In Belgium, we have signed a letter of intent for low-carbon electricity supply which follows a similar agreement in France with EDF.
- The construction of the 1.1Mt EAF at the Gijón plant has started, representing the first in ArcelorMittal Europe’s decarbonization program. The
- ArcelorMittal has been expanding its low carbon solutions offering to capture demand for low carbon steel, which builds on solutions already available across the group, such as low carbon emissions buildings (e.g. Steligence brand) and renewables (e.g. Magnelis® coating for solar).
- ArcelorMittal launched the HyMatch® steel brand for hydrogen transport pipelines supporting the implementation of hydrogen infrastructure globally\
- The recent acquisition of Italpannelli’s Italian and Spanish businesses, with a capacity of 13 million m2 of sandwich panels a year, builds on ArcelorMittal’s exposure to insulation panels for low carbon emissions buildings
- ArcelorMittal continues to increase its XCarb® recycled and renewably produced (RRP) low-carbon emissions product range and sales. XCarb® products are on track to double sales in 2024 (vs. 2023). In addition, ArcelorMittal Europe Flat Products has the capability to produce
80% of its industry steel grades and dimensions in XCarb® RRP, with the potential to expand.
Analysis of results for the six months ended June 30, 2024 versus results for the six months ended June 30, 2023
Sales for 1H 2024 decreased by -
Operating income for 1H 2024 of
EBITDA in 1H 2024 decreased by -
ArcelorMittal’s net income for 1H 2024 declined to
Net cash provided by operating activities in 1H 2024 was
Analysis of results for 2Q 2024 versus 1Q 2024
Sales in 2Q 2024 were stable at
Operating income of
EBITDA in 2Q 2024 decreased by -
ArcelorMittal recorded net income in 2Q 2024 of
ArcelorMittal's basic earnings per common share for 2Q 2024 was
Free cash flow during 2Q 2024 of
Analysis of operations3
North America
| (USDm) unless otherwise shown | 2Q 24 | 1Q 24 | 2Q 23 | 1H 24 | 1H 23 |
| Sales | 3,162 | 3,347 | 3,498 | 6,509 | 6,848 |
| Operating income | 338 | 585 | 662 | 923 | 1,117 |
| Depreciation | (129) | (120) | (127) | (249) | (253) |
| EBITDA | 467 | 705 | 789 | 1,172 | 1,370 |
| Crude steel production (Kt) | 1,823 | 2,180 | 2,244 | 4,003 | 4,420 |
| - Flat shipments (Kt) | 1,865 | 2,245 | 2,046 | 4,110 | 4,254 |
| - Long shipments (Kt) | 719 | 666 | 667 | 1,385 | 1,358 |
| Steel shipments* (Kt) | 2,468 | 2,796 | 2,604 | 5,264 | 5,447 |
| Average steel selling price (US$/t) | 1,040 | 1,042 | 1,116 | 1,041 | 1,052 |
* North America steel shipments include slabs sourced by the segment from Group companies (mainly the Brazil segment) and sold to the Calvert JV (eliminated in the Group consolidation). These shipments can vary between periods due to slab sourcing mix and timing of vessels: 2Q'24 476kt; 1Q'24 481kt, 2Q'23 360kt; 1H'24 957kt and 1H'23 834kt.
Sales in 2Q 2024 decreased by -
Since May 24, 2024, ArcelorMittal Mexico steel plant in Lazaro Cardenas and mine located in the Tenencia La Mira in the state of Michoacán was impacted by an illegal blockade by a group of workers due to their dissatisfaction with the distribution of profit sharing by the Company. In order to maintain safety within and outside the plant, the Company halted the blast furnace and mining operations, and has undertaken mitigation actions to continue to serve customers. The impact is an estimated loss of ~0.4Mt volume and
Operating income in 2Q 2024 decreased by -
EBITDA in 2Q 2024 of
Brazil7
| (USDm) unless otherwise shown | 2Q 24 | 1Q 24 | 2Q 23 | 1H 24 | 1H 23 |
| Sales | 3,243 | 3,051 | 3,826 | 6,294 | 6,894 |
| Operating income | 325 | 302 | 553 | 627 | 876 |
| Depreciation | (88) | (94) | (105) | (182) | (177) |
| EBITDA | 413 | 396 | 658 | 809 | 1,053 |
| Crude steel production (Kt) | 3,607 | 3,564 | 3,732 | 7,171 | 6,784 |
| - Flat shipments (Kt) | 2,441 | 2,137 | 2,363 | 4,578 | 4,103 |
| - Long shipments (Kt) | 1,215 | 1,061 | 1,234 | 2,276 | 2,451 |
| Steel shipments (Kt) | 3,637 | 3,180 | 3,583 | 6,817 | 6,520 |
| Average steel selling price (US$/t) | 826 | 886 | 1,001 | 854 | 991 |
Sales in 2Q 2024 increased by +
Operating income in 2Q 2024 of
EBITDA in 2Q 2024 increased by +
Europe
| (USDm) unless otherwise shown | 2Q 24 | 1Q 24 | 2Q 23 | 1H 24 | 1H 23 |
| Sales | 7,822 | 7,847 | 8,686 | 15,669 | 17,766 |
| Operating income | 194 | 69 | 436 | 263 | 744 |
| Depreciation | (268) | (274) | (270) | (542) | (533) |
| EBITDA | 462 | 343 | 706 | 805 | 1,277 |
| Crude steel production (Kt) | 8,041 | 7,604 | 6,827 | 15,645 | 14,507 |
| - Flat shipments (Kt) | 5,206 | 5,302 | 5,049 | 10,508 | 10,517 |
| - Long shipments (Kt) | 2,204 | 1,939 | 2,068 | 4,143 | 4,216 |
| Steel shipments (Kt) | 7,407 | 7,236 | 7,114 | 14,643 | 14,727 |
| Average steel selling price (US$/t) | 929 | 945 | 1,048 | 937 | 1,026 |
Sales in 2Q 2024 were stable at
Operating income in 2Q 2024 was
EBITDA in 2Q 2024 of
India and JVs
Income from associates, joint-ventures and other investments (excluding impairments and exceptional items, if any) for 2Q 2024 was
ArcelorMittal has investments in various joint ventures and associate entities globally. The Company considers Calvert (
AMNS India
| (USDm) unless otherwise shown | 2Q 24 | 1Q 24 | 2Q 23 | 1H 24 | 1H 23 |
| Production (Kt) ( | 1,867 | 1,984 | 1,792 | 3,851 | 3,557 |
| Shipments (Kt) ( | 1,892 | 2,016 | 1,679 | 3,908 | 3,509 |
| Sales ( | 1,580 | 1,815 | 1,606 | 3,395 | 3,318 |
| EBITDA ( | 237 | 312 | 563 | 549 | 904 |
Sales in 2Q 2024 declined by -
EBITDA during 2Q 2024 declined to
Calvert12
| (USDm) unless otherwise shown | 2Q 24 | 1Q 24 | 2Q 23 | 1H 24 | 1H 23 |
| Production (Kt) ( | 1,202 | 1,216 | 1,198 | 2,418 | 2,424 |
| Shipments (Kt) ( | 1,145 | 1,131 | 1,157 | 2,276 | 2,327 |
| Sales ( | 1,244 | 1,236 | 1,328 | 2,480 | 2,551 |
| EBITDA ( | 166 | 188 | 142 | 354 | 179 |
Production, shipments and sales in 2Q 2024 were stable as compared to 1Q 2024.
Calvert EBITDA during 2Q 2024 of
Sustainable Solutions13
| (USDm) unless otherwise shown | 2Q 24 | 1Q 24 | 2Q 23 | 1H 24 | 1H 23 |
| Sales | 2,891 | 2,889 | 3,218 | 5,780 | 6,330 |
| Operating income | 55 | 26 | 120 | 81 | 189 |
| Depreciation | (40) | (44) | (39) | (84) | (70) |
| EBITDA | 95 | 70 | 159 | 165 | 259 |
Sales in 2Q 2024 were stable at
Operating income in 2Q 2024 was higher at
EBITDA in 2Q 2024 of
The 1GW India renewables project in Andhra Pradesh, Southern India has begun commissioning. The
On May 31, 2024, ArcelorMittal Construction completed the acquisition of Italpannelli Srl in Italy and Italpannelli Iberica in Spain (following the earlier purchase of Italpannelli Germany in March 2023). The acquisition adds considerable strategic value to ArcelorMittal Construction’s business, which now has 45 production and commercial sites across Europe and 5 in other continents, including c. 20 panel lines and c. 80 profile lines. Italpannelli doubles ArcelorMittal Construction’s panel capacity, adds new product capabilities, provides access to new markets, and significant synergies.
Mining
| (USDm) unless otherwise shown | 2Q 24 | 1Q 24 | 2Q 23 | 1H 24 | 1H 23 |
| Sales | 641 | 729 | 680 | 1,370 | 1,584 |
| Operating income | 150 | 246 | 225 | 396 | 599 |
| Depreciation | (66) | (65) | (56) | (131) | (112) |
| EBITDA | 216 | 311 | 281 | 527 | 711 |
| Iron ore production (Mt) | 5.9 | 6.5 | 6.4 | 12.4 | 13.1 |
| Iron ore shipment (Mt) | 6.2 | 6.3 | 6.6 | 12.5 | 14.0 |
Note: Mining segment comprises iron ore operations of ArcelorMittal Mines Canada (AMMC) and ArcelorMittal Liberia.
Sales in 2Q 2024 declined by -
Iron ore production was impacted by wildfires in the Port Cartier region, which disrupted rail operations at ArcelorMittal Mines Canada during the last few weeks of June, as well as maintenance.
Operating income in 2Q 2024 was -
EBITDA in 2Q 2024 of
Other recent developments
- On June 17, 2024, ArcelorMittal announced the closing of its offering of US
$500 million aggregate principal amount of6.00% notes due 17 June 2034 and US$500 million aggregate principal amount of6.35% notes due 17 June 2054. - On May 29, 2024, ArcelorMittal signed an agreement for a
$5.5 billion revolving credit facility, replacing the$5.5 billion revolving credit facility dated December 19, 2018, which was amended on April 27, 2021. The agreement incorporates a single tranche maturing on May 29, 2029, with two one-year extension options. As of June 30, 2024, the$5.5 billion revolving credit facility was fully available. Liquidity at the end of June 30, 2024 of$11.4 billion consisted of cash and cash equivalents of$5.9 billion and$5.5 billion of available credit lines.
Outlook
Overall economic sentiment remains subdued with customers maintaining a “wait and see” approach with no restocking yet apparent.
Nevertheless, given the low inventory environment (particularly Europe) as soon as real demand begins to gradually improve, apparent demand is expected to rebound.
Despite continued headwinds to real demand, World ex-China apparent steel consumption ("ASC") in 2024 is expected to grow by +
ArcelorMittal expects the following demand dynamics by key region:
- In the US, although real demand growth is expected to remain lackluster due to the lagged impact of higher interest rates, the destocking that impacted apparent demand in 2023 is not expected to continue in 2024. As a result, apparent steel consumption of flat products is expected to grow by +
1.0% to +3.0% (compared to previous expectation of +1.5% to +3.5% ); - In Europe, whilst the Company assumes a decline in real demand, both automotive and machinery, the destocking that impacted apparent demand in 2023 is not expected to continue in 2024. As a result, apparent demand for flat products is expected to grow only marginally within the range of +
0.0% to +2.0% (compared to previous expectation of growth within a range of +2.0% to +4.0% ); - In Brazil, the Company continues to expect a gradual recovery in real steel consumption to support an ASC growth within a range of +
1.0% to +3.0% (compared to previous expectation of +0.5% to +2.5% growth); - In India, the Company continues to expect another strong year with apparent steel consumption growth within the range of +
7.5% to +9.5% (compared to previous expectation of +6.5% to +8.5% ); - In China, economic growth is expected to weaken. The continued weakness in real estate, and the lack of a significant stimulus means limited offsetting demand support from infrastructure spending. As a result, steel consumption is expected to be relatively stable in the range of -
1.0% to +1.0% (compared to previous guidance of +0.0% to +2.0% ).
The Company remains positive on the medium/long-term steel demand outlook and believes that it is optimally positioned to execute its strategy of growth with capital returns.
Capex in 2024 is expected within the
ArcelorMittal Condensed Consolidated Statements of Financial Position1
| In millions of U.S. dollars | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 |
| ASSETS | |||
| Cash and cash equivalents | 5,903 | 5,437 | 7,783 |
| Trade accounts receivable and other | 4,186 | 4,403 | 3,661 |
| Inventories | 17,690 | 18,372 | 18,759 |
| Prepaid expenses and other current assets | 3,229 | 3,462 | 3,037 |
| Total Current Assets | 31,008 | 31,674 | 33,240 |
| Goodwill and intangible assets | 4,947 | 5,016 | 5,102 |
| Property, plant and equipment | 33,142 | 33,477 | 33,656 |
| Investments in associates and joint ventures | 10,168 | 10,141 | 10,078 |
| Deferred tax assets | 9,563 | 9,521 | 9,469 |
| Other assets | 2,019 | 2,118 | 2,372 |
| Total Assets | 90,847 | 91,947 | 93,917 |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||
| Short-term debt and current portion of long-term debt | 2,357 | 1,873 | 2,312 |
| Trade accounts payable and other | 12,493 | 12,674 | 13,605 |
| Accrued expenses and other current liabilities | 5,456 | 5,890 | 5,852 |
| Total Current Liabilities | 20,306 | 20,437 | 21,769 |
| Long-term debt, net of current portion | 8,770 | 8,348 | 8,369 |
| Deferred tax liabilities | 2,270 | 2,330 | 2,432 |
| Other long-term liabilities | 5,202 | 5,175 | 5,279 |
| Total Liabilities | 36,548 | 36,290 | 37,849 |
| Equity attributable to the equity holders of the parent | 52,204 | 53,591 | 53,961 |
| Non-controlling interests | 2,095 | 2,066 | 2,107 |
| Total Equity | 54,299 | 55,657 | 56,068 |
| Total Liabilities and Shareholders’ Equity | 90,847 | 91,947 | 93,917 |
ArcelorMittal Condensed Consolidated Statements of Operations1
| | Three months ended | Six months ended | |||
| In millions of U.S. dollars unless otherwise shown | Jun 30, 2024 | Mar 31, 2024 | Jun 30, 2023 | Jun 30, 2024 | Jun 30, 2023 |
| Sales | 16,249 | 16,282 | 18,606 | 32,531 | 37,107 |
| Depreciation (B) | (635) | (642) | (680) | (1,277) | (1,310) |
| Operating income (A) | 1,046 | 1,072 | 1,925 | 2,118 | 3,117 |
| Operating margin % | | | | | |
| Income from associates, joint ventures and other investments (excluding impairments) (C) | 181 | 242 | 393 | 423 | 711 |
| Net interest expense | (7) | (63) | (47) | (70) | (111) |
| Foreign exchange and other net financing loss | (260) | (261) | (133) | (521) | (250) |
| Non-cash mark-to-market (loss)/gain until acquisition of | (173) | 181 | — | 8 | — |
| Income before taxes and non-controlling interests | 787 | 1,171 | 2,138 | 1,958 | 3,467 |
| Current tax expense | (179) | (321) | (316) | (500) | (598) |
| Deferred tax (expense)/benefit | (96) | 124 | 85 | 28 | 178 |
| Income tax expense (net) | (275) | (197) | (231) | (472) | (420) |
| Income including non-controlling interests | 512 | 974 | 1,907 | 1,486 | 3,047 |
| Non-controlling interests income | (8) | (36) | (47) | (44) | (91) |
| Net income attributable to equity holders of the parent | 504 | 938 | 1,860 | 1,442 | 2,956 |
| Basic earnings per common share ($) | 0.63 | 1.16 | 2.21 | 1.80 | 3.47 |
| Diluted earnings per common share ($) | 0.63 | 1.16 | 2.20 | 1.79 | 3.46 |
| Weighted average common shares outstanding (in millions) | 794 | 809 | 842 | 802 | 851 |
| Diluted weighted average common shares outstanding (in millions) | 797 | 811 | 845 | 804 | 853 |
| OTHER INFORMATION | |||||
| EBITDA (A-B+C) | 1,862 | 1,956 | 2,998 | 3,818 | 5,138 |
| EBITDA Margin % | | | | | |
| Total Group iron ore production (Mt) | 9.5 | 10.2 | 10.5 | 19.7 | 21.3 |
| Crude steel production (Mt) | 14.7 | 14.4 | 14.7 | 29.1 | 29.2 |
| Steel shipments (Mt) | 13.9 | 13.5 | 14.2 | 27.3 | 28.7 |
ArcelorMittal Condensed Consolidated Statements of Cash flows1
| Three months ended | Six months ended | ||||
| In millions of U.S. dollars | Jun 30, 2024 | Mar 31, 2024 | Jun 30, 2023 | Jun 30, 2024 | Jun 30, 2023 |
| Operating activities: | |||||
| Income attributable to equity holders of the parent | 504 | 938 | 1,860 | 1,442 | 2,956 |
| Adjustments to reconcile net income to net cash provided by operations: | |||||
| Non-controlling interests income | 8 | 36 | 47 | 44 | 91 |
| Depreciation | 635 | 642 | 680 | 1,277 | 1,310 |
| Income from associates, joint ventures and other investments | (181) | (242) | (393) | (423) | (711) |
| Deferred tax expenses/(benefit) | 96 | (124) | (85) | (28) | (178) |
| Change in working capital | 84 | (1,719) | 178 | (1,635) | (597) |
| Other operating activities (net) | (73) | 369 | (200) | 296 | 165 |
| Net cash provided (used) by operating activities (A) | 1,073 | (100) | 2,087 | 973 | 3,036 |
| Investing activities: | |||||
| Purchase of property, plant and equipment and intangibles (B) | (985) | (1,236) | (1,060) | (2,221) | (1,998) |
| Other investing activities (net)16 | (57) | 274 | 45 | 217 | (1,886) |
| Net cash used in investing activities | (1,042) | (962) | (1,015) | (2,004) | (3,884) |
| Financing activities: | |||||
| Net proceeds (payments) relating to payable to banks and long-term debt | 1,007 | (334) | (1,011) | 673 | (1,401) |
| Dividends paid to ArcelorMittal shareholders | (200) | — | (185) | (200) | (185) |
| Dividends paid to minorities (C) | (7) | (77) | (12) | (84) | (65) |
| Share buyback | (293) | (597) | (227) | (890) | (704) |
| Lease payments and other financing activities (net) | 7 | (52) | (55) | (45) | (484) |
| Net cash provided (used) by financing activities | 514 | (1,060) | (1,490) | (546) | (2,839) |
| Net increase (decrease) in cash and cash equivalents | 545 | (2,122) | (418) | (1,577) | (3,687) |
| Effect of exchange rate changes on cash | (81) | (190) | 64 | (271) | 212 |
| Change in cash and cash equivalents | 464 | (2,312) | (354) | (1,848) | (3,475) |
| Free cash flow (A+B+C) | 81 | (1,413) | 1,015 | (1,332) | 973 |
Appendix 1: Capital expenditures1
| (USDm) | 2Q 24 | 1Q 24 | 2Q 23 | 1H 24 | 1H 23 |
| North America | 100 | 111 | 122 | 211 | 237 |
| Brazil | 211 | 203 | 215 | 414 | 382 |
| Europe | 275 | 443 | 312 | 718 | 633 |
| Sustainable Solutions | 80 | 160 | 84 | 240 | 139 |
| Mining | 262 | 235 | 204 | 497 | 372 |
| Others | 57 | 84 | 123 | 141 | 235 |
| Total | 985 | 1,236 | 1,060 | 2,221 | 1,998 |
Appendix 1a: Strategic growth projects completed during the last 4 quarters
| Segment | Site / unit | Capacity / details | Impact on EBITDA * | Key date |
| Brazil | ArcelorMittal Vega Do Sul | Increase hot dipped / cold rolled coil capacity and construction of a new 700kt continuous annealing line (CAL) and continuous galvanizing line (CGL) combiline | | 2Q 2024 (first coil) |
| Sustainable Solutions | Andhra Pradesh (India) | Renewable energy project: 1GW of nominal capacity solar and wind power | | Commissioning has begun |
Appendix 1b: Ongoing strategic growth projects17
| Segment | Site / unit | Capacity / details | Impact on EBITDA * | Key date / forecast completion |
| Brazil | Serra Azul mine | Facilities to produce 4.5Mt/year DRI quality pellet feed by exploiting compact itabirite iron ore | | 2H 2024 |
| Brazil | Barra Mansa | Increase capacity of HAV bars and sections by 0.4Mt/pa | | 1H 202515 |
| Brazil | Monlevade | Increase in liquid steel capacity by 1.0Mt/year; Sinter feed capacity of 2.25Mt/year | | 2H 2026 |
| Europe | Mardyck (France) | New Electrical Steels. Facilities to produce 170kt NGO Electrical Steels (of which 145kt for Auto applications) consisting of annealing and pickling line (APL), reversing mill (REV) and annealing and varnishing (ACL) lines | | 2H 2024 (ACL) |
| Europe | Gijon (Spain) | Construction of a new 1.1Mt EAF to enable the production of low carbon-emissions steel for the long products sector, specifically rails and wire rod | | 1H 2026 |
| North America | Las Truchas mine (Mexico) | Revamping project with 1Mtpa pellet feed capacity increase (to 2.3Mt/year) with DRI concentrate grade capability | | 2H 2025 |
| AMNS Calvert (US) | Calvert** | New 1.5Mt EAF and caster | | 2H 2024 |
| AMNS India | Hazira** | Debottlenecking existing assets; AMNS India medium-term plans are to expand and grow initially to ~15Mt by early 2026 in Hazira (Phase 1A); ongoing downstream projects; Phase 1B to 20Mt planned; plans for expansion to 24Mt (including 1.5Mt long capacity) under preparation; additional greenfield opportunities under development | | 2H 2026 |
| Mining | Liberia mine | Phase 2 premium produce expansion: Increase production capacity to 15Mt/year | | 4Q 2024 (first concentrate) |
* Estimate of additional EBITDA based on full capacity and assuming prices/spreads generally in line with the averages of the 2015-2020 period; ** AMNS India and Calvert are share of net income
Appendix 2: Debt repayment schedule as of June 30, 2024
| (USD billion) | 2024 | 2025 | 2026 | 2027 | ≥2028 | Total |
| Bonds | 0.3 | 1.0 | 1.0 | 1.2 | 3.7 | 7.2 |
| Commercial paper | 0.9 | — | — | — | — | 0.9 |
| Other loans | 0.4 | 0.8 | 0.3 | 0.7 | 0.8 | 3.0 |
| Total gross debt | 1.6 | 1.8 | 1.3 | 1.9 | 4.5 | 11.1 |
As of June 30, 2024, the average debt maturity is 6.9 years.
Appendix 3: Reconciliation of gross debt to net debt
| (USD million) | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 |
| Gross debt | 11,127 | 10,221 | 10,681 |
| Less: Cash and cash equivalents | (5,903) | (5,437) | (7,783) |
| Net debt | 5,224 | 4,784 | 2,898 |
| Net debt / LTM EBITDA | 0.7 | 0.6 | 0.3 |
Appendix 4: Terms and definitions
Unless indicated otherwise, or the context otherwise requires, references in this earnings release 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.
Crude steel production: steel in the first solid state after melting, suitable for further processing or for sale.
Depreciation: refers to amortization and depreciation.
EPS: refers to basic or diluted earnings per share.
EBITDA: defined as operating result plus depreciation, impairment items and exceptional items and result from associates, joint ventures and other investments (excluding impairments and exceptional items if any).
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.
Free cash flow (FCF): refers to net cash provided by operating activities less capex less dividends paid to minority shareholders.
Foreign exchange and other net financing income(loss): include foreign currency exchange impact, bank fees, interest on pensions, impairment of financial assets, revaluation of derivative instruments and other charges that cannot be directly linked to operating results.
Gross debt: long-term debt and short-term debt.
Impairment items: refers to impairment charges net of reversals.
Income from associates, joint ventures and other investments: refers to income from associates, joint ventures and other investments (excluding impairments and exceptional items if any).
Investable cash flow: refers to cashflow from operating activities less maintenance capex.
Iron ore reference prices: refers to iron ore prices for
Kt: refers to thousand metric tonnes.
Liquidity: cash and cash equivalents plus available credit lines excluding back-up lines for the commercial paper program.
LTIF: refers to lost time injury frequency rate equals lost time injuries per 1,000,000 worked hours, based on own personnel and contractors.
Maintenance capex: refers to recurring expenditures required for a company to continue operating and sustain its growth.
Mt: refers to million metric tonnes.
Net debt: long-term debt and short-term debt less cash and cash equivalents.
Net debt/LTM EBITDA: refers to Net debt divided by EBITDA for the last twelve months.
Net interest expense: includes interest expense less interest income.
On-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: North America segment includes the Flat, Long and Tubular operations of Canada and Mexico; and also includes all Mexico mines. The Brazil segment includes the Flat, Long and Tubular operations of Brazil and its neighboring countries including Argentina, Costa Rica, Venezuela; and also includes Andrade and Serra Azul captive iron ore mines. The Europe segment includes the Flat, Long and includes Bosnia and Herzegovina captive iron ore mines; Sustainable Solutions division includes Downstream Solutions and Tubular operations of the European business. The Others segment includes the Flat, Long and Tubular operations of Kazakhstan (till December 7, 2023), Ukraine and South Africa; and also includes the captive iron ore mines in Ukraine and iron ore and coal mines in Kazakhstan (till December 7, 2023). Mining segment includes iron ore operations of ArcelorMittal Mines Canada and ArcelorMittal Liberia.
Own iron ore production: includes total of all finished production of fines, concentrate, pellets and lumps and includes share of production.
Price-cost effect: a lack of correlation or a lag in the corollary relationship between raw material and steel prices, which can either have a positive (i.e. increased spread between steel prices and raw material costs) or negative effect (i.e. a squeeze or decreased spread between steel prices and raw material costs).
Shipments: 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.
Working capital change (working capital investment / release): Movement of change in working capital - trade accounts receivable plus inventories less trade and other accounts payable.
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 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. Segment information presented in this press release is prior to inter-segment eliminations and certain adjustments made to operating results 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.
- LTIF refers to lost time injury frequency rate equals lost time injuries per 1,000,000 worked hours, based on own personnel and contractors.
- As announced with ArcelorMittal’s fourth quarter 2023 financial results, the Company has amended its presentation of reportable segments and EBITDA. The changes, applied as from January 1, 2024, are as follows: EBITDA is defined as operating result plus depreciation, impairment items and exceptional items and result from associates, joint ventures and other investments (excluding impairments and exceptional items if any); The NAFTA segment has been renamed "North America", a core growth region for the Company; A new ‘Sustainable Solutions’ segment is composed of a number of high-growth, niche, capital light businesses, playing an important role in supporting climate action (including renewables, special projects and construction business). Previously reported within the Europe segment, this is a growth vector of the Company and represents businesses employing over 12,000 people at more than 260 commercial and production sites across 60+ countries. Following the sale of the Company’s operations in Kazakhstan, the remaining parts of the former ‘ACIS’ segment have been assigned to ‘Others’; there are no changes to the ‘Brazil’ and ‘Mining’ segments. ‘India and JVs’ is now presented and the share of net income of AMNS India and AMNS Calvert as well as the other associates, joint ventures and other investments is included in EBITDA. India is a high growth vector of the Company, with our assets well-positioned to grow with the domestic market. These changes have been applied as from January 1, 2024, and the comparative periods of 2023 shown herein have been retrospectively recast.
- 2Q 2024 includes decarbonization capex of
$0.1 billion and strategic growth capex of$0.3 billion . Strategic projects capex in 2Q 2024 primarily include investments for the Liberia expansion project (first concentrate), Mardyck electrical steels, Serra Azul and the renewables energy project in India. - Estimate of additional contribution to EBITDA, based on assumptions once ramped up to capacity and assuming prices/spreads generally in line with the averages of the 2015-2020 period. Out of the total
$1.8 billion EBITDA potential, it is considered that$0.3 billion has been achieved to date from the completion of the Mexico HSM project on an observed run-rate basis. - September 2020 was the inception date of the ongoing share buyback programs.
- On March 9, 2023, ArcelorMittal announced that following receipt of customary regulatory approvals it had completed the acquisition of Companhia Siderúrgica do Pecém (‘CSP’) in Brazil for an enterprise value of approximately
$2.2 billion . - 1H 2024 net cash provided by operating activities of
$973 million (including working capital investment of$1,635 million ) less capex of$2,221 million and dividends to minority shareholders of$84 million . - 1H 2024 includes decarbonization capex of
$0.1 billion and strategic growth capex of$0.7 billion . Strategic projects capex in 1H 2024 primarily include investments for the Liberia expansion project (first concentrate), the renewables energy project in India and Mardyck electrical steels. - Vallourec share price increased to
€17.20 as of March 31, 2024, as compared to€14.64 contractually agreed at the signing of the share price agreement for 65.2 million shares on March 12, 2024 generating a non-cash mark-to-market gain of$181 million as of March 31, 2024 and causing a non-cash mark-to-market loss of$173 million in 2Q 2024 as the Vallourec share price decreased to€14.76 as of June 30, 2024. In accordance with IFRS, the Company recognized this net gain as the final fair value of the investment is unknown until transaction closing. - The Company has repurchased 34.7 million shares during 1H 2024; totalling 60.9 million shares from the current 85 million share buyback program.
- Production: Including all production of the hot strip mill including processing of slabs on a hire work basis for ArcelorMittal Group entities and third parties, including stainless steel slabs. Shipments: including shipments of finished products processed on a hire work basis for ArcelorMittal Group entities and third parties, including stainless steel products. EBITDA of Calvert presented here on a
100% basis as a stand-alone business and in accordance with the Company's policy, applying the weighted average method of accounting for inventory. - Sustainable Solutions is focused on growing niche businesses providing vital added-value support to growing sustainable related applications from a low-carbon, capital light asset base. These businesses include: a) Construction solutions: Product offerings include sandwich panels (e.g. insulation), profiles, turnkey pre-fabrication solutions, etc., to assist building in smarter ways and reduce the carbon footprint of buildings; b) Projects: Product range includes plates, pipes & tubes, wire ropes, reinforced steels, providing high-quality & sustainable steel solutions for energy projects and supporting offshore wind, energy transition and onshore construction; c) Industeel: EAF based capacity: High quality steel grades designed to meet demanding customer specifications (e.g. XCarb® for wind turbines); Supplying wide range of industries; energy, chemicals, mechanical engineering, machinery, infrastructure, defence & security; d) Renewables: investments in renewable energy projects; e) Metallics: investment and development of the Company’s scrap recycling and collection capabilities; f) Distribution & service centers: European services processor including slitting, cut-to-length, multi blanking, and press blanking and operating through an extensive network. Sustainable Solutions segment is making progress towards the targeted doubling of EBITDA in the next 5 years expected to be achieved through organic levers and targeted M&A with different businesses growing at different rates.
- XCarb® is designed to bring together all of ArcelorMittal’s reduced, low and zero-carbon products and steelmaking activities, as well as wider initiatives and green innovation projects, into a single effort focused on achieving demonstrable progress towards carbon neutral steel. Alongside the new XCarb® brand, we have launched three XCarb® initiatives: the XCarb® innovation fund, XCarb® green steel certificates and XCarb® recycled and renewably produced for products made via the Electric Arc Furnace route using scrap. The Company is offering green steel using a system of certificates (XCarb® green certificates). These are issued by an independent auditor to certify tonnes of CO2 savings achieved through the Company’s investment in decarbonization technologies in Europe. Net-zero equivalence is determined by assigning CO2 savings certificates equivalent to CO2 per tonne of steel produced in 2018 as baseline. The certificates relate to the tonnes of CO2 saved in total, as a direct result of the decarbonization projects being implemented across a number of its European sites.
- Barra Mansa (Brazil) strategic capex project is now expected to be completed in 1H 2025 (revised from previous 2H 2024 timeframe)
- The Company sold the remaining
4.23% stake in Erdemir in 1Q 2024, generating total proceeds of$0.2 billion . - Other projects under development include: ArcelorMittal Texas: Plans under development to double capacity and add CCS capability; Calvert (US): Option to add a second 1.5Mt EAF at lower capex intensity; Electrical steels US (Alabama): 150kt NGO electrical steels for automotive; Government support received; engineering studies underway; Liberia further expansion to 30Mt; and India further expansion: Hazira to 20Mt and Greenfield on the east coast of India.
- Investable cash flow is defined as cashflow from operating activities less maintenance capex. From June 30, 2023, to June 30, 2024, cashflow provided by operating activities totalled
$5.6 billion . Total capex during this period was$4.8 billion of which maintenance capex was$3.0 billion , strategic capex of$1.5 billion and decarbonization of$0.3 billion .
Second quarter 2024 earnings analyst conference call
ArcelorMittal Management will host a conference call for members of the investment community to present and comment on the three-month period ended June 30, 2024 on: Thursday August 1, 2024, at 9.30am US Eastern time; 14.30pm London time and 15.30pm CET.
To access via the conference call and ask a question during the Q&A, please register in advance: https://register.vevent.com/register/BI9f82767e8da148158be3f4cf77dd0e13
Alternatively, the webcast can be accessed live on the day: https://edge.media-server.com/mmc/p/4p47v6en
Forward-Looking Statements
This document contains 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.
Non-GAAP/Alternative Performance Measures
This press release also includes certain non-GAAP financial/alternative performance measures. ArcelorMittal presents EBITDA and EBITDA/tonne, free cash flow (FCF) and ratio of net debt/LTM EBITDA which are non-GAAP financial/alternative performance measures, as additional measures to enhance the understanding of its operating performance. As announced previously, the definition of EBITDA has been revised to include income from share of associates, JVs and other investments (excluding impairments and exceptional items if any, of associates, JVs and other investments) because the Company believes this information provides investors with additional information to understand its results, given the increasing significance of its joint ventures. ArcelorMittal believes such indicators are relevant to provide management and investors with additional information. 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. Investable cashflow is defined as cash flow after normative (maintenance) capex, and the Company thus believes that it represents the cashflow that is available for allocation at management’s discretion. The Company’s guidance as to additional EBITDA estimated to be generated from certain projects and with respect to working capital for the second half of 2024, is based on the same accounting policies as those applied in the Company’s financial statements prepared in accordance with IFRS. ArcelorMittal is unable to reconcile, without unreasonable effort, such guidance to the most directly comparable IFRS financial measure, due to the uncertainty and inherent difficulty of predicting the occurrence and the financial impact of items impacting comparability. For the same reasons, ArcelorMittal is unable to address the significance of the unavailable information. Non-GAAP financial/alternative performance measures should be read in conjunction with, and not as an alternative to, ArcelorMittal's financial information prepared in accordance with IFRS. Comparable IFRS measures and reconciliations of non-GAAP financial/alternative performance measures are presented herein.
About ArcelorMittal
ArcelorMittal is one of the world's leading steel and mining companies, with a presence in 60 countries and primary steelmaking facilities in 15 countries. In 2023, ArcelorMittal had revenues of
Our goal is to help build a better world with smarter steels. Steels made using innovative processes which use less energy, emit significantly less carbon and reduce costs. Steels that are cleaner, stronger and reusable. Steels for electric vehicles and renewable energy infrastructure that will support societies as they transform through this century. With steel at our core, our inventive people and an entrepreneurial culture at heart, we will support the world in making that change. This is what we believe it takes to be the steel company of the future.
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: https://corporate.arcelormittal.com/
Enquiries
ArcelorMittal investor relations: +44 207 543 1128; 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) +44 207 629 7988. Contact: Paul Weigh +44 203 214 2419
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