ArcelorMittal 3Q Profit Drops on Charges, Forex -- Update
01 Noviembre 2018 - 02:52AM
Noticias Dow Jones
By Nathan Allen
ArcelorMittal (MT.AE) said Thursday that its net profit dropped
in the third quarter as a result of impairment charges relating to
the acquisition of Ilva SpA and unfavorable currency swings.
Earnings dropped sharply in the third quarter after the group
booked impairments of $509 million on asset sales related to the
Ilva deal and foreign-exchange and financing losses of $475
million. As a result, net profit fell to $899 million from $1.21
billion a year earlier.
Stripping out one-off effects, earnings before interest, taxes,
depreciation and amortization rose to $2.73 billion from $1.92
billion, slightly undershooting a company-compiled consensus of
$2.75 billion.
Higher average steel prices buoyed sales, which rose to $18.52
billion from $17.64 billion, but still missed a consensus estimate
of $19.64 billion compiled by FactSet.
Nevertheless, the group remains bullish on the industry,
forecasting global steel consumption to grow by between 2% and 3%
in 2018.
"We continue to see robust real demand and healthy utilization
rates across all steel segments," Chief Executive Lakshmi N. Mittal
said.
Investors and analysts have struggled to assess the impact of
global trade tensions on the group, leading to considerable
volatility in its share price, which is down more than 19% this
year.
ArcelorMittal has long advocated for stricter measures in the
U.S. and Europe against what it sees as unfair practices by Chinese
producers and has described itself as a "net beneficiary" of U.S.
steel tariffs. However, the resulting economic instability has
reduced demand in some of its main markets, including the
automotive and construction industries.
ArcelorMittal also said it has completed the takeover of Italy's
Ilva SpA, which will be folded into the group's European
flat-products unit and will now be known as ArcelorMittal
Italia.
Write to Nathan Allen at nathan.allen@dowjones.com
(END) Dow Jones Newswires
November 01, 2018 04:37 ET (08:37 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
ArcelorMittal (EU:MT)
Gráfica de Acción Histórica
De Feb 2024 a Mar 2024
ArcelorMittal (EU:MT)
Gráfica de Acción Histórica
De Mar 2023 a Mar 2024