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HomeAll newsMost read newsBusiness Leaders Biography
Birthday : 06/19/1950
Place of birth : Rajasthan - India
Biography : Founder of Mittal Steel Co. NV, Lakshmi Niwas Mittal is an Indian businessperson who has been the he

Arcelormittal Reports First Quarter 2019 Results -5-

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05/09/2019 | 01:17am EDT
      January 2019 as part of a longer-term plan to remove that dormant 
      tailings facility. An independent technical audit reporting directly to 
      the Public Prosecutors office has been engaged by ArcelorMittal and will 
      issue regular reports. Continuous 24/7 monitoring of the tailings storage 
      facility continues via radar, accelerometers, on line water level, 
      piezometers and imaging. The Mining operations at Serra Azul were 
      restarted on March 18, 2019. 
 
 
   Recent publications and filings 
 
 
   -- On April 29, 2019, ArcelorMittal published its 2018 integrated annual 
      review. The review underpins the Company's commitment to transparent 
      reporting. It has been produced in-line with the International Integrated 
      Reporting Council's framework and demonstrates the Company's approach to 
      ensuring it brings long-term, sustainable value to its broad stakeholder 
      base. It outlines the Company's progress against its four strategic 
      priorities, namely: improving its safety performance; achieving its 
      financial targets; delivering on its Action 2020 strategic plan and 
      integrating sustainability into the business. The review, which can be 
      accessed online at http://annualreview2018.arcelormittal.com includes 
      videos of several members of ArcelorMittal's senior management team, 
      including: Lakshmi Mittal, Chairman and CEO; Aditya Mittal, President and 
      CFO, ArcelorMittal and CEO, ArcelorMittal Europe; Brian Aranha, executive 
      vice president; and David Clarke, vice president. 
 
   -- On March 27, 2019, ArcelorMittal published the statutory financial 
      statements of ArcelorMittal parent company for the year ended December 
      31, 2018. These financial statements have been filed with the electronic 
      database of the Luxembourg Stock Exchange ( http://www.bourse.lu 
      www.bourse.lu) and are available on http://corporate.arcelormittal.com 
      http://corporate.arcelormittal.com under "Investors > Financial reports > 
      Annual reports". 
 
   -- On March 1, 2019, ArcelorMittal published its annual report for the year 
      ended December 31, 2018. The report has been filed with the electronic 
      database of the Luxembourg Stock Exchange ( http://www.bourse.lu 
      www.bourse.lu) and is available on http://corporate.arcelormittal.com 
      http://corporate.arcelormittal.com under "Investors > Financial reports > 
      Annual reports". 
 
   -- On February 25, 2019, ArcelorMittal filed its Annual Report 2018 on Form 
      20-F with the U.S. Securities and Exchange Commission (SEC). The report 
      is now available on http://corporate.arcelormittal.com 
      http://corporate.arcelormittal.com under "Investors > Financials reports 
      > SEC filings". 
 
 
   Outlook and guidance 
 
   Based on year-to-date growth and the current economic outlook, 
ArcelorMittal expects global apparent steel consumption ("ASC") to grow 
further in 2019 by between +1.0% to +1.5% (up from previous expectation 
of +0.5% to +1.0% growth). By region: 
 
   ArcelorMittal expects ASC in US to grow by +0.5% to +1.5% in 2019 (no 
change from previous expectation), driven by continued growth in 
machinery and non-residential construction. In Europe, driven by weak 
manufacturing and declining automotive production, demand is now 
expected to contract by up to -1.0% (versus previous expectation of a 
slight growth of up to +1.0%). In Brazil, our 2019 ASC forecasts have 
been slightly moderated to grow in a range of +3.0% to +4.0% (from 
previous expectation of +3.5% to +4.5%) after weaker than expected 
economic growth early in 2019. In the CIS, ASC is expected to grow +1.0% 
to +2.0% in 2019 (no change from previous expectation). Overall, World 
ex-China ASC is expected to grow by approximately +1.0% to +2.0% in 2019 
(down from previous expectation of +2.0% to +3.0%). In China, overall 
demand is expected to now grow by between +0% to +1.0% in 2019 (up from 
previous forecast for a contraction in demand by -0.5% to -1.5%), due to 
economic stimulus and as real estate demand continues to surprise on the 
upside. 
 
   Given these demand expectations, the positive scope effect of the 
ArcelorMittal Italia and Votorantim acquisition (net of the remedy 
assets sales for the ArcelorMittal Italia acquisition), the expectation 
that operational disruptions (both controllable and uncontrollable) that 
negatively impacted 2018 shipments will not recur, offset in part by 
impact of European production reduction, the Group's steel shipments are 
expected to increase in 2019 vs 2018. 
 
   Market-priced iron ore shipments for FY 2019 are expected to be broadly 
stable as compared to FY 2018 with increases in Liberia and AMMC to be 
offset by lower volume in Mexico (in part due to the end of life of 
Volcan mine). 
 
   The Company expects certain cash needs of the business (including capex, 
interest, cash taxes, pensions and certain other cash costs) but 
excluding working capital investment to be approximately $6.4 billion in 
2019. Capex is expected to be $4.3 billion including the continued 
investment in high returns projects in Mexico and Brazil. Interest 
expense is expected to increase in 2019 to approximately $0.65 billion 
as compared to previous forecast of $0.6 billion (primarily due to IFRS 
16 impact) while cash taxes, pensions and other cash costs are expected 
be $1.5 billion. 
 
   Due to a smaller than anticipated release in the final quarter of 2018, 
the Group invested more in working capital than expected in 2018 ($4.4 
billion versus guidance of $3.0-3.5 billion). The Group expects this 
additional investment of approximately $1 billion to be released over 
the course of 2019. The extent of any further changes in working capital 
in 2019 will be dictated by market conditions, particularly the price 
and volume environment in the final weeks. 
 
   The Company will continue to prioritize deleveraging and believes that 
$7 billion (previous target of $6 billion adjusted to reflect impact of 
IFRS 16) is an appropriate net debt target that will sustain investment 
grade metrics even at the low point of the cycle. The Company will 
continue to invest in opportunities that will enhance future returns. By 
investing in these opportunities with focus and discipline, the cash 
flow generation potential of the Company is expected to increase. 
 
   At meeting of shareholders at the Annual General Meeting on May 7, 2019, 
the shareholders voted in favor of an increase in the base dividend for 
2019(11) (paid from 2018 earnings) to $0.20 per share from $0.10 per 
share. ArcelorMittal intends to progressively increase the base dividend 
paid to its shareholders, and, on attainment of the net debt target, the 
Company is committed to returning a portion of annual FCF to 
shareholders. 
 
   ArcelorMittal Condensed Consolidated Statement of Financial Position(1) 
 
 
 
 
                                                   Mar 31,  Dec 31,    Mar 31, 
In millions of U.S. dollars                          2019     2018        2018 
ASSETS 
Cash and cash equivalents                            2,246    2,354    2,260 
Trade accounts receivable and other                  5,131    4,432    5,012 
Inventories                                         20,583   20,744   18,952 
Prepaid expenses and other current assets            3,000    2,834    2,653 
Assets held for sale(9)                              1,950    2,111      224 
Total Current Assets                                32,910   32,475   29,101 
 
Goodwill and intangible assets                       5,549    5,728    5,759 
Property, plant and equipment                       36,647   35,638   37,031 
Investments in associates and joint ventures         5,000    4,906    5,231 
Deferred tax assets                                  8,318    8,287    7,170 
Other assets                                         4,236    4,215    3,671 
Total Assets                                        92,660   91,249   87,963 
 
LIABILITIES AND SHAREHOLDERS' EQUITY 
Short-term debt and current portion of long-term 
 debt                                                2,739    3,167    4,084 
Trade accounts payable and other                    14,232   13,981   13,494 
Accrued expenses and other current liabilities       5,699    5,486    5,389 
Liabilities held for sale(9)                           828      821       42 
Total Current Liabilities                           23,498   23,455   23,009 
 
Long-term debt, net of current portion              10,591    9,316    9,309 
Deferred tax liabilities                             2,337    2,374    2,605 
Other long-term liabilities                         11,945   11,996   10,349 
Total Liabilities                                   48,371   47,141   45,272 
 
Equity attributable to the equity holders of 
 the parent                                         42,286   42,086   40,608 
Non-controlling interests                            2,003    2,022    2,083 
Total Equity                                        44,289   44,108   42,691 
Total Liabilities and Shareholders' Equity          92,660   91,249   87,963 
-------------------------------------------------  -------  -------  ------- 
 
 
   ArcelorMittal Condensed Consolidated Statement of Operations(1) 
 
 
 
 
                                                              Three months ended 
In millions of U.S. dollars unless         Mar 31,     Dec 31,     Sep 30,     Jun 30,       Mar 31, 
 otherwise shown                             2019        2018        2018        2018           2018 
---------------------------------------- 
Sales                                     19,188      18,327      18,522      19,998      19,186 
Depreciation (B)                            (733)       (723)       (653)       (712)       (711) 
Impairment charges net of purchase 
 gains (B)                                  (150)       (215)       (509)         --         (86) 
Exceptional items (B)                         --          29          --          --        (146) 

(MORE TO FOLLOW) Dow Jones Newswires

05-09-19 0116ET

Stocks mentioned in the article
ChangeLast1st jan.
ARCELORMITTAL 0.95% 14.854 End-of-day quote.-18.29%
ARCELORMITTAL 0.97% 14.844 Delayed Quote.-18.17%
EURO / BRAZILIAN REAL (EUR/BRL) 0.10% 4.205 Delayed Quote.-5.66%
VALUE8 2.51% 5.72 Delayed Quote.20.68%
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