Welcome to our dedicated page for ArcelorMittal news (Ticker: MT), a resource for investors and traders seeking the latest updates and insights on ArcelorMittal stock.
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 February 11, 2021, ArcelorMittal (MT) reported its financial results for Q4 and FY 2020, revealing a net loss of $0.7 billion, a significant improvement from a $2.5 billion loss in 2019. The company achieved $1.5 billion in free cash flow despite a challenging market, with steel shipments down 18.2% to 69.1 million tonnes. Operating income was $2.1 billion, up from a loss the previous year. ArcelorMittal's gross debt dropped to $12.3 billion, the lowest since the 2006 merger. The company also initiated a $500 million share buyback program and a proposed dividend of $0.30 per share.
ArcelorMittal North America Holdings LLC has announced an agreement to sell 40 million shares of Cleveland-Cliffs through a fully underwritten public market offering. This sale is part of a combined public offering and will contribute proceeds for a new share buyback program. Following this transaction, ArcelorMittal will retain approximately 38 million shares of Cleveland-Cliffs and other preferred stock. The registration statement for this offering has been filed with the SEC, and additional details on the buyback program will be shared after 15 February.
On October 5, 2020, ArcelorMittal launched a tender offer to purchase outstanding 6.125% notes due 2025, with a total value of U.S.$249,886,000 tendered. The offer expired on October 13, 2020, and the company anticipates accepting the validly tendered notes on October 15, 2020, with cash payments expected on the settlement dates. BBVA Securities, Citigroup, HSBC, Mizuho, and Natixis served as dealer managers for this offer. The company aims to strengthen its financial position through this offer, which is part of its broader strategy in managing its debt obligations.
On October 5, 2020, ArcelorMittal commenced an invitation for bondholders to sell up to €1 billion in bonds. The offer was subject to conditions and expired on October 13, 2020. The company accepted offers totaling €263,583,000 for 3.125% Notes and €133,121,000 for 0.95% Notes, both accepted at significant purchase prices. The settlement is expected on October 15, 2020, with all accepted bonds to be canceled thereafter. The shares of ArcelorMittal trade under the ticker 'MT' on multiple stock exchanges.
On October 13, 2020, ArcelorMittal Europe unveiled its CO2 technology strategy aimed at providing green steel solutions. The company plans to deliver 30,000 tonnes of green steel by year-end, increasing to 120,000 tonnes in 2021 and 600,000 tonnes by 2022. Key strategies include utilizing hydrogen in DRI-EAF and blast furnaces and expanding Smart Carbon technology. Projects across various sites will reduce CO2 emissions significantly. Funding applications for these initiatives are being prepared for the EU’s Innovation Fund, supporting the goal of a 30% CO2 emissions reduction by 2030 and achieving net zero by 2050.
ArcelorMittal has initiated an invitation for bondholders to offer their bonds for cash, with a maximum acceptance amount of €1.0 billion. This includes the outstanding €750 million 3.125% Notes due January 14, 2022, and €500 million 0.95% Notes due January 17, 2023. The invitation period runs from October 5, 2020, to October 13, 2020. The company aims to reduce its gross debt by repurchasing these bonds, with the 2022 Bonds set at a purchase price of 103.6% and the 2023 Bonds at 99.8%. Settlement is expected on or around October 15, 2020.
ArcelorMittal has launched a tender offer to purchase all outstanding 6.125% notes due 2025 for a total principal amount of $500 million. The tender offer is set to close on October 13, 2020, at 5:00 p.m. New York City time. Holders of the validly tendered notes will receive a tender consideration of $1,170 per $1,000 principal amount plus accrued interest. The company aims to reduce its gross debt through early repayment of these notes, utilizing existing cash resources. The Offer is being managed by several major financial institutions.
ArcelorMittal announces a commitment to achieve carbon neutrality by 2050, expanding its previous 2019 pledge for its European operations. CEO Aditya Mittal highlighted the need for global cooperation to decarbonize the steel industry, which currently has a high carbon footprint. The company is exploring two low-emission steelmaking routes: Hydrogen-DRI and Smart Carbon. The former aims for commercial viability by 2030, while the latter could yield results sooner. ArcelorMittal stresses the importance of supportive policies to maintain competitiveness during this transition.
ArcelorMittal has announced a share buyback program under the AGM Authorization from June 13, 2020. This program allows the company to repurchase shares worth up to US$500 million between September 28, 2020, and March 31, 2021. The buyback is intended to meet obligations from debt exchangeable into equity or to reduce share capital. This announcement follows Cleveland-Cliffs' agreement to acquire ArcelorMittal USA, signaling a strategic move for the company amidst market dynamics.
On September 28, 2020, ArcelorMittal announced a definitive agreement with Cleveland-Cliffs Inc. to acquire its U.S. operations for $1.4 billion in cash and stock. The deal includes $505 million in cash and approximately 78 million shares of Cleveland-Cliffs common stock. Cleveland-Cliffs will also assume about $0.5 billion in net liabilities and $1.5 billion in pension obligations. This strategic move aims to enhance ArcelorMittal's North American positioning and enable a $500 million share buyback, improving the company's capital structure.
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