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ArcelorMittal S.A., headquartered in Luxembourg City, is a Luxembourgian multinational steel manufacturing corporation established in 2006 through the merger of Arcelor and Indian-owned Mittal Steel. As one of the world's leading integrated steel and mining companies, ArcelorMittal operates across 60 countries with primary steelmaking facilities in 15 countries.
The company's operational segments include NAFTA, Brazil, Europe, ACIS (Africa, CIS, and other countries), and Mining. It derives the majority of its revenue from the Europe segment, which specializes in manufacturing and selling hot-rolled coil, cold-rolled coil, coated products, tinplate, plate, and slabs. The products cater to sectors such as automotive, general industry, and packaging. Additionally, the segment produces long products like sections, wire rods, rebar, billets, blooms, wire drawing, and tubular products. Geographically, the United States contributes significantly to its revenue.
ArcelorMittal has recently announced its fourth quarter and full year 2023 sell-side analysts' consensus figures, highlighting a calculated collective outlook based on analysts' estimates. The consensus, managed by Visible Alpha, includes the impact of the sale of the Company’s Kazakhstan operations to the Qazaqstan Investment Corporation, effective December 7, 2023. Additionally, due to revisions in the expected future cash flows of Acciaierie d'Italia (ADI), the company anticipates fully impairing its investment in ADI, reflecting in the fourth-quarter results.
Financially, ArcelorMittal reported an EBITDA of $7.6 billion for FY 2023 and a free cash flow of $2.9 billion. The net income for the same period stands at $0.9 billion, impacted by non-cash, non-recurring items like the $2.4 billion effect of the Kazakhstan operations' disposal and a $1.4 billion impairment on ADI. Despite these challenges, the company maintains a robust financial position with a net debt of $2.9 billion as of the end of 2023 and liquidity of $13.2 billion.
In terms of growth and sustainability, ArcelorMittal is advancing several strategic projects, including substantial investments in low carbon steel production and renewable energy infrastructure. The company is committed to reducing its carbon footprint through innovative processes that use less energy and emit significantly less carbon. Their XCarb® recycled and renewably produced steel is set to feature prominently in the Paris Olympics, marking a significant step in their decarbonization strategy.
ArcelorMittal's financial strength is reinforced by its share repurchase programs, which have reduced the fully diluted shares outstanding by 33% since September 2020. Furthermore, the company has a diverse investment portfolio, including significant strategic joint ventures like AMNS India and Calvert in North America.
Looking ahead, ArcelorMittal remains positive about medium to long-term steel demand, anticipating a growth in apparent steel consumption globally. The company continues to prioritize safety, having commissioned a comprehensive independent safety audit to enhance its operational protocols and culture.
ArcelorMittal is listed on stock exchanges in New York, Amsterdam, Paris, Luxembourg, and Madrid under the symbol MT.
On November 21, 2022, ArcelorMittal announced a successful pricing of a $1.2 billion offering of 6.550% notes due 2027 and a $1.0 billion offering of 6.800% notes due 2032, totaling approximately $2.2 billion. The proceeds will be allocated for general corporate purposes. Following the offering, commitments under a $2.2 billion bridge facility agreement will be cancelled by an amount equal to the offering excess beyond $400 million. The closing date for the offering is set for November 29, 2022, subject to customary conditions.
ArcelorMittal (MT) reported its Q3 2022 financial results, highlighting significant declines in operating income and net income due to various market challenges. Operating income fell to $1.7 billion from $4.5 billion in Q2 2022, while net income dropped to $993 million compared to $3.9 billion in the previous quarter. Steel shipments also decreased by 5.6% sequentially. Despite these challenges, the company repurchased 31 million shares in the quarter, maintaining a robust net cash position of $3.9 billion by the end of September 2022.
ArcelorMittal has invested $25 million in TerraPower through its XCarb® Innovation Fund. This investment is part of an $830 million equity raise by TerraPower, the largest among advanced nuclear companies. TerraPower, founded by Bill Gates, is developing the Natrium™ reactor, which integrates a sodium fast reactor with a molten salt energy storage system, targeting an in-service date within this decade. The XCarb® Innovation Fund aims to boost decarbonization technologies, having invested $122.5 million in five companies since its launch.
On October 31, 2022, ArcelorMittal released its third quarter 2022 consensus figures from sell-side analysts, provided by Visible Alpha. The estimates indicate an EBITDA of $2,337 million, a net income of $1,355 million, and earnings per share of $1.52. The consensus is based on contributions from 12 brokers who continuously cover the company. ArcelorMittal disclaims any responsibility for the accuracy of these forecasts, which reflect external analysts' perspectives. The Company also provides an update on its share buyback transactions, enhancing shareholder value.
ArcelorMittal is launching a CAD$1.8 billion decarbonisation project at its Dofasco plant in Hamilton, Ontario, aiming to cut carbon emissions by 3 million tonnes annually. This initiative will transition the facility to DRI-EAF steelmaking, significantly lowering its carbon footprint by eliminating coal in production. Backed by CAD$900 million from Canadian federal and Ontario provincial governments, the project is crucial for ArcelorMittal's commitment to reducing carbon intensity by 25% by 2030 and achieving net zero by 2050, with anticipated completion by 2028.
ArcelorMittal has announced a $17.5 million investment in Form Energy Inc. through its XCarb® Innovation fund, aligning with Form's $450 million Series E financing round. This follows a previous investment of $25 million made in July 2021. Form Energy is focused on developing multi-day energy storage systems, crucial for a renewable electric grid. The company is currently narrowing down locations for its first manufacturing facility. Additionally, both companies are collaborating to develop tailored direct reduced iron for Form’s battery technology.
ArcelorMittal hosted an investor event at AM/NS India’s Hazira plant, marking its first since the acquisition in December 2019. The event highlighted significant improvements in AM/NS India’s financial performance, including strong growth in steel production and EBITDA, and a reduction in net debt. The company is committed to enhancing its operational efficiency and decarbonizing the Indian steel industry, aiming to increase its capacity to approximately 15 million tonnes by early 2026. AM/NS India positions itself to capture market growth in a domestic steel market projected to reach 300 million tonnes by 2030.
On September 26, 2022, ArcelorMittal announced the issuance of €600 million in 4.875% notes due September 26, 2026, as part of its €10 billion wholesale Euro Medium Term Notes Programme. The issuance closed today, with proceeds earmarked for general corporate purposes and the refinancing of existing debt. The press release clarifies that this does not constitute a public offering and that no steps have been taken in jurisdictions requiring registration. Investors are cautioned about the risks associated with the notes, including the possibility of a decline in value.
ArcelorMittal has released its half-year report for the period ending June 30, 2022. The report is accessible on its corporate website and has been filed with the U.S. SEC as Form 6-K. In 2021, the company achieved revenues of $76.6 billion and produced 69.1 million metric tonnes of crude steel, alongside 50.9 million metric tonnes of iron ore. ArcelorMittal aims to create innovative steels that reduce energy use and carbon emissions, aligning its vision with sustainability goals.
On July 29, 2022, ArcelorMittal announced a new share buyback program to repurchase 60,431,380 shares, totaling approximately $1.4 billion. This initiative is part of a broader strategy, bringing total buybacks for 2022 to around $3.4 billion. The program, authorized by shareholders on May 4, 2022, aims to fulfill obligations related to debt and employee share programs and to reduce share capital. The completion is anticipated by May 2023, subject to market conditions. Notably, a significant shareholder opted not to participate in this program.
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