Luxembourg, July 30, 2020 - ArcelorMittal
(referred to as “ArcelorMittal” or the “Company”) (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, 2020.
Highlights:
- Health and safety: Protecting the health and wellbeing of
employees remains the Company’s overarching priority; LTIF rate2 of
0.77x in 2Q 2020 and 0.91x in 1H 2020
- Operating performance in 2Q 2020 reflects the negative impact
of the COVID-19 pandemic primarily on the steel business, with
reduced demand leading to a 23.7% sequential reduction in steel
shipments (1H 2020 shipments 23% lower YoY)
- Operating loss of $0.3bn in 2Q 2020 includes $0.2bn exceptional
items3 (1H 2020 operating loss of $0.6bn includes $0.8bn impairment
and exceptional items3)
- EBITDA of $0.7bn in 2Q 2020 (1H 2020 EBITDA of $1.7bn)
- Net loss of $0.6bn in 2Q 2020 (1H 2020 net loss of $1.7bn, with
adjusted net loss of $0.9bn excluding impairment and exceptional
items3)
- Free cash outflow was limited to $0.4bn (net cash provided by
operating activities of $0.9bn less $1.3bn capex) in 1H 2020 and
included a working capital investment of $0.5bn
- Gross debt of $13.5bn and net debt of $7.8bn as of June 30,
2020 (down $2.3bn vs June 30, 2019) the lowest level achieved since
the ArcelorMittal merger
- Liquidity at the end of 2Q 2020 stood at $11.2bn (consisting of
cash and cash equivalents of $5.7bn and $5.5bn of available credit
lines5)
Outlook:
- While the speed and trajectory of the demand recovery post the
COVID-19 pandemic remain uncertain, ArcelorMittal’s core markets
are showing signs of recovery from exceptionally low levels
- The Company will continue to align production levels to demand,
with the ability and flexibility to restart hot idled capacity as
the recovery progresses
- Against the exceptional operating backdrop, the Company has
taken a comprehensive series of actions to reduce all costs to
protect profitability and cash flows. While these actions will
continue, the Company is now developing its options for structural
cost improvements to appropriately position the fixed cost base for
the post COVID-19 operating environment, with more details to be
announced with full year results
- The Company continues to expect certain cash needs of the
business to be approximately $3.5bn in 2020 and remains focused on
its FY 2020 $1bn working capital efficiency target
- Achievement of its $7bn net debt objective remains a priority,
at which point the Company expects its capital allocation focus to
shift from deleveraging towards cash returns to shareholders
- The Company’s $2bn asset portfolio optimization program
continues to progress, and with suitable and viable buyers having
expressed serious interest in certain assets, the Company remains
confident in completing the program by mid-2021
- The Company’s European climate action report detailed the Smart
Carbon and an Innovative DRI-based technology routes to reduce the
European business carbon emissions by a targeted 30% by 2030 before
reaching net zero in 2050
Financial highlights (on the basis of
IFRS1):
(USDm) unless otherwise shown |
2Q 20 |
1Q 20 |
2Q 19 |
1H 20 |
1H 19 |
Sales |
10,976 |
|
14,844 |
|
19,279 |
|
25,820 |
|
38,467 |
|
Operating (loss) / income |
(253) |
|
(353) |
|
(158) |
|
(606) |
|
611 |
|
Net loss attributable to equity holders of the parent |
(559) |
|
(1,120) |
|
(447) |
|
(1,679) |
|
(33) |
|
Basic loss per common share (US$) |
(0.50) |
|
(1.11) |
|
(0.44) |
|
(1.57) |
|
(0.03) |
|
|
|
|
|
|
|
Operating (loss) / income / tonne (US$/t) |
(17) |
|
(18) |
|
(7) |
|
(18) |
|
14 |
|
EBITDA |
707 |
|
967 |
|
1,555 |
|
1,674 |
|
3,207 |
|
EBITDA/ tonne (US$/t) |
48 |
|
50 |
|
68 |
|
49 |
|
72 |
|
Steel-only EBITDA/ tonne (US$/t) |
21 |
|
34 |
|
43 |
|
29 |
|
50 |
|
|
|
|
|
|
|
Crude steel production (Mt) |
14.4 |
21.1 |
23.8 |
35.5 |
47.8 |
Steel shipments (Mt) |
14.8 |
19.5 |
22.8 |
34.3 |
44.6 |
Own iron ore production (Mt) |
13.5 |
14.4 |
14.6 |
27.9 |
28.7 |
Iron ore shipped at market price (Mt) |
9.2 |
8.6 |
9.9 |
17.8 |
19.1 |
Commenting, Mr. Lakshmi N. Mittal,
ArcelorMittal Chairman and CEO, said:
“The first six months of the year, and particularly the second
quarter, have been one of the most difficult periods in the history
of the Company, with demand for steel considerably disrupted by the
COVID-19 pandemic. I would like to thank our employees across the
globe, who have demonstrated great resilience and strength of
character to first look out for one another and then maintain
operations to meet customer demand in these most challenging of
environments."
“As a group we responded swiftly to protect our people, assets,
profitability and cashflow, ensuring the Company is in as strong a
position as possible to weather this very challenging period. We
implemented a comprehensive range of measures that include reducing
production, capex and fixed costs, as well as raising capital to
further strengthen the balance sheet which has taken our net debt
close to the level at which we will prioritize returns to
shareholders."
“There are now signs of activity picking up, especially in
regions where lockdowns have ended, but clearly it is prudent to
remain cautious about the outlook. Against this context, we
are examining what structural changes might be required to ensure
the Company is well configured to prosper in the coming years as
demand recovers."
“It has also become clear in recent months that governments
around the world will align efforts to stimulate the economic
recovery with the transition to a low carbon economy. ArcelorMittal
recently published its roadmap to reduce emissions by 30% in Europe
by 2030 and we were encouraged to see last week’s proposal by the
European Council to introduce a carbon border adjustment.
Technologically we know that it should be possible to produce
carbon neutral steel, but success is co-dependent on policy, of
which the carbon border adjustment is an important component, as is
access to EU funds."
“In conclusion, it has been an unexpectedly challenging period
for everyone. The remainder of the year will no doubt continue to
be challenging but I believe we are well prepared to increase
production and capture the improvement in demand when it
comes.”
Sustainable development and safety
performance
Health and safety - Own personnel and
contractors lost time injury frequency rate
Protecting the health and wellbeing of employees remains the
Company’s overarching priority with ongoing strict adherence to
World Health Organisation guidelines and specific government
guidelines have been followed and implemented. We continue to
ensure extensive monitoring, introduced very strict sanitation
practices, continue to enforce social distancing measures at all
operations, and have implemented remote working wherever possible
and provided essential personal protective equipment to our
people.
Health and safety performance2 (inclusive of ArcelorMittal
Italia (previously known as Ilva)), based on own personnel and
contractors lost time injury frequency (LTIF) rate was 0.77x in the
second quarter of 2020 ("2Q 2020") as compared to 1.01x in first
quarter of 2020 ("1Q 2020") and 1.26x in second quarter of 2019
("2Q 2019"). Health and safety performance (inclusive of
ArcelorMittal Italia) in the first six months of 2020 (“1H 2020”)
was 0.91x as compared to 1.19x in the first six months of 2019 (“1H
2019”).
Excluding the impact of ArcelorMittal Italia, the LTIF was 0.50x
for 2Q 2020 as compared to 0.72x for 1Q 2020 and 0.68x for the
second quarter of 2019 (“2Q 2019”). Health and safety performance
(excluding the impact of ArcelorMittal Italia) improved to 0.63x in
1H 2020 as compared to 0.66x for the first six months of 2019.
The Company’s efforts to improve its health and safety record
remain focused on both further reducing the rate of severe injuries
and preventing fatalities.
Own personnel and contractors - Frequency
rate
Lost
time injury frequency rate |
2Q 20 |
1Q 20 |
2Q 19 |
1H 20 |
1H 19 |
Mining |
0.54 |
|
0.79 |
|
0.64 |
|
0.69 |
|
0.51 |
NAFTA |
0.46 |
|
0.56 |
|
0.46 |
|
0.51 |
|
0.50 |
Brazil |
0.15 |
|
0.45 |
|
0.43 |
|
0.32 |
|
0.45 |
Europe |
0.96 |
|
1.04 |
|
1.00 |
|
1.01 |
|
0.91 |
ACIS |
0.48 |
|
0.82 |
|
0.58 |
|
0.67 |
|
0.66 |
Total Steel |
0.50 |
|
0.72 |
|
0.69 |
|
0.63 |
|
0.69 |
Total (Steel and Mining) excluding ArcelorMittal
Italia |
0.50 |
|
0.72 |
|
0.68 |
|
0.63 |
|
0.66 |
ArcelorMittal Italia |
9.14 |
|
7.93 |
|
13.73 |
|
8.41 |
|
12.35 |
Total (Steel and Mining) including ArcelorMittal
Italia |
0.77 |
|
1.01 |
|
1.26 |
|
0.91 |
|
1.19 |
Key sustainable development highlights
for 2Q 2020:
- The Company’s fully Integrated 2019 Annual Review was published
in May 2020
- ‘Climate Action in Europe’ report released in June 2020, laying
out the European roadmap for a 30% CO2 reduction target by 2030,
and carbon neutrality by 2050. The report clarifies two pioneering
carbon-neutral routes for steelmaking - Smart Carbon and Innovative
DRI – and outlines the new policy frameworks required for the
transition
- The European Investment Bank (EIB) provided support to
accelerate ArcelorMittal’s Smart Carbon route via a €75 million
loan for Steelanol and Torero demonstration projects (total capex
of €215 million) and set to reduce 350,000 tonnes of CO2 annually
in the first phase
- The Company published its first report on climate lobbying
positions of membership associations in June 2020, whilst the
Company's "Climate Action Report 1" won the CRRA Award for Best
Climate Report in July 2020
Analysis of results for the six months
ended June 30, 2020 versus results for the six months ended June
30, 2019
Total steel shipments for 1H 2020 were 34.3 million metric
tonnes (Mt) representing a decrease of 23% (and 19.4% on a scope
adjusted basis excluding the impact of the remedy asset sales
related to the ArcelorMittal Italia acquisition for 1H 2019), as
compared to 44.6Mt in 1H 2019, primarily due to the impact of the
COVID-19 pandemic. Shipments were lower in Europe (-31%, down
-24.6% excluding the impact of the remedy asset sales related to
the ArcelorMittal Italia acquisition for 1H 2019), Brazil (-22.2%),
ACIS (-14.3%) and NAFTA (-13.2%).
Sales for 1H 2020 decreased by 32.9% to $25.8 billion as
compared with $38.5 billion for 1H 2019, primarily due to lower
steel shipments (-23%) and lower average steel selling prices
(-14.7%).
Depreciation of $1.5 billion for 1H 2020 was stable as compared
with 1H 2019. FY 2020 depreciation is expected to be approximately
$3.0 billion (based on current exchange rates).
Impairment charges3 for 1H 2020 were $92 million and relate to
the permanent closure of the coke plant in Florange (France), at
the end of April 2020. Impairment charges for 1H 2019 were $1.1
billion related to the remedy asset sales for the ArcelorMittal
Italia acquisition ($0.5 billion) and impairment of the fixed
assets of ArcelorMittal USA ($0.6 billion) following a sharp
decline in steel prices and high raw material costs.
Exceptional items for 1H 2020 were $678 million due to inventory
related charges in NAFTA and Europe. Exceptional items for 1H 2019
were nil.
The operating loss for 1H 2020 of $0.6 billion was primarily
driven by the impairment and exceptional items as discussed above,
and is lower as compared to operating income of $0.6 billion in 1H
2019, due to the impact on steel segments from negative price-cost
effects, and the loss of profit margin on reduced steel shipments
(overall fixed costs were reduced in line with lower shipments),
and a weaker mining performance driven by lower market priced iron
ore shipments, lower iron ore quality premia and lower coal
prices.
Income from associates, joint ventures and other investments for
1H 2020 was $127 million as compared to $302 million for 1H 2019.
1H 2020 income from associates, joint ventures and other
investments was negatively impacted by COVID-19. Income from
associates, joint ventures and other investments for 1H 2019
included positive contribution from the Calvert JV and the annual
dividend received from Erdemir of $93 million.
Net interest expense in 1H 2020 was lower at $227 million as
compared to $315 million in 1H 2019 following debt repayments and
liability management. The Company expects full year 2020 net
interest expense to be approximately $0.5 billion.
Foreign exchange and other net financing losses were $415
million for 1H 2020 as compared to losses of $404 million for 1H
2019. Foreign exchange gain for 1H 2020 was $12 million as compared
to foreign exchange loss of $14 million in 1H 2019. 1H 2020
includes non-cash mark-to-market losses of $117 million related to
the mandatory convertible bonds call option following the market
price decrease of the underlying share; such losses amounted to $61
million in 1H 2019. 1H 2020 also includes early bond redemption
premium expenses of $66 million.
ArcelorMittal recorded an income tax expense of $524 million
(including $262 million non-cash deferred tax expense) for 1H 2020
as compared to $149 million (including $256 million non-cash
deferred tax income) for 1H 2019.
ArcelorMittal’s net loss for 1H 2020 was $1,679 million, or
$1.57 basic loss per common share, as compared to a net loss in 1H
2019 of $33 million, or $0.03 basic loss per common share.
Analysis of results for 2Q 2020 versus
1Q 2020 and 2Q 2019Total steel shipments in 2Q 2020 were
23.7% lower at 14.8Mt as compared with 19.5Mt for 1Q 2020
significantly impacted by the effects of COVID-19 pandemic across
all regions with lower steel shipments in NAFTA (-31.4%), Europe
(-26.7%), Brazil (-12.4%) and ACIS (-8.4%). Total steel shipments
in 2Q 2020 were 34.7% lower as compared with 22.8Mt for 2Q 2019
(and -31.8% on a scope adjusted basis excluding the impact of the
remedy asset sales related to the ArcelorMittal Italia acquisition
in 2Q 2019) significantly impacted by the effects of COVID-19
pandemic across all regions with lower steel shipments in Europe
(-42.3%, scope adjusted for the remedy asset sales as discussed
above, -37.0%), NAFTA (-30.2%), Brazil (-26.1%) and ACIS
(-24.7%).
During the latter part of 1Q 2020, and through 2Q 2020 the
global escalation of the COVID-19 pandemic and subsequent measures
introduced by governments worldwide to contain it had a clear
negative impact on economic activity and industrial supply chains
in most parts of the world. Industrial activity declined
significantly in all of the Company’s geographic markets. The
Company responded swiftly by significantly reducing production
(including temporarily idling steelmaking and finishing assets)
globally in alignment with reduced demand and compliance with
government requirements. During the latter part of 2Q 2020,
activity levels improved as lockdown measures eased in many
jurisdictions and notably automotive sales and production levels
increased.
Sales in 2Q 2020 were $11.0 billion as compared to $14.8 billion
for 1Q 2020 and $19.3 billion for 2Q 2019. Sales in 2Q 2020 were
26.1% lower as compared to 1Q 2020 primarily due to lower steel
shipments (-23.7%) due to COVID-19 impacts offset in part by higher
market-priced iron ore shipments (+6.4%) and higher seaborne iron
ore reference prices (+4%). Sales in 2Q 2020 were 43.1% lower as
compared to 2Q 2019 primarily due to lower steel shipments (-34.7%)
due to COVID-19 impacts, lower average steel selling prices
(-16.6%), lower market-priced iron ore shipments (-7.3%) and lower
seaborne iron ore reference prices (-7.3%) and lower quality
premium.
Depreciation for 2Q 2020 was lower at $739 million as compared
to $771 million for 1Q 2020 and $766 million in 2Q 2019.
Impairment charges3 for 2Q 2020 were nil. Impairment charges for
1Q 2020 were $92 million and relate to the permanent closure of the
coke plant in Florange (France) at the end of April 2020.
Impairment charges for 2Q 2019 were $947 million related to the
remedy asset sales for the ArcelorMittal Italia acquisition ($347
million) and impairment of the fixed assets of ArcelorMittal USA
($600 million) following a sharp decline in steel prices and high
raw material costs.
Exceptional items3 in 2Q 2020 of $221 million consist of
inventory related charges in NAFTA. Exceptional items of $457
million for 1Q 2020 primarily included inventory related charges in
NAFTA and Europe. Exceptional items for 2Q 2019 were nil.
Operating loss for 2Q 2020 was $253 million as compared to $353
million in 1Q 2020 and $158 million in 2Q 2019. Operating loss for
2Q 2020 was lower as compared to 1Q 2020, primarily driven by the
lower impairment and exceptional items as discussed above, improved
mining performance, partially offset by the loss of profit margin
on reduced steel shipments (overall fixed costs were reduced in
line with lower shipments).
Loss from associates, joint ventures and other investments for
2Q 2020 was $15 million as compared to income of $142 million for
1Q 2020 and income of $94 million in 2Q 2019. Losses in 2Q 2020
were negatively impacted by COVID-19. 1Q 2020 income was positively
impacted by results of AMNS India8.
Net interest expense in 2Q 2020 was broadly stable at $112
million as compared to $115 million in 1Q 2020 and lower than $154
million in 2Q 2019.
Foreign exchange and other net financing gains in 2Q 2020 were
$36 million as compared to losses of $451 million for 1Q 2020 and
losses of $173 million in 2Q 2019. Foreign exchange gain for 2Q
2020 was $123 million as compared to foreign exchange loss of $111
million and a gain of $34 million in 1Q 2020 and 2Q 2019,
respectively. 2Q 2020 includes non-cash mark-to-market gain of $1
million related to the mandatory convertible bond call option as
compared to losses of $118 million in 1Q 2020 and $55 million in 2Q
2019. 1Q 2020 also included early bond redemption premium expenses
of $66 million.
ArcelorMittal recorded an income tax expense of $184 million in
2Q 2020 as compared to $340 million for 1Q 2020 and $14 million for
2Q 2019.
ArcelorMittal recorded a net loss for 2Q 2020 of $559 million
(or $0.50 basic loss per common share), as compared to a net loss
for 1Q 2020 of $1,120 million (or $1.11 basic loss per common
share), and a net loss for 2Q 2019 of $447 million (or $0.44 basic
loss per common share).
Analysis of segment
operationsNAFTA
(USDm) unless otherwise shown |
2Q 20 |
1Q 20 |
2Q 19 |
1H 20 |
1H 19 |
Sales |
2,768 |
|
4,304 |
|
5,055 |
|
7,072 |
|
10,140 |
|
Operating loss |
(327) |
|
(120) |
|
(539) |
|
(447) |
|
(323) |
|
Depreciation |
(136) |
|
(126) |
|
(137) |
|
(262) |
|
(271) |
|
Impairment |
— |
|
— |
|
(600) |
|
— |
|
(600) |
|
Exceptional items |
(221) |
|
(241) |
|
— |
|
(462) |
|
— |
|
EBITDA |
30 |
|
247 |
|
198 |
|
277 |
|
548 |
|
Crude steel production (kt) |
3,698 |
|
5,503 |
|
5,590 |
|
9,201 |
|
10,978 |
|
Steel shipments (kt) |
3,797 |
|
5,536 |
|
5,438 |
|
9,333 |
|
10,757 |
|
Average steel selling price (US$/t) |
670 |
|
715 |
|
836 |
|
697 |
|
855 |
|
NAFTA segment crude steel production decreased by 32.8% to 3.7Mt
in 2Q 2020 as compared to 5.5Mt in 1Q 2020, primarily due to weak
demand driven by the COVID-19 pandemic (particularly in US and
Canadian operations).
The escalation of the COVID-19 pandemic during the latter part
of 1Q 2020 had impacted ArcelorMittal's key end markets in the US
and Canada. The Company responded immediately by significantly
adapting its capacity which continued during 2Q 2020.
Steel shipments in 2Q 2020 decreased by 31.4% to 3.8Mt as
compared to 5.5Mt in 1Q 2020, due to weak demand driven by COVID-19
pandemic particularly in the automotive and energy sectors. As the
2Q 2020 progressed, steel shipments started to recover as lockdown
measures eased and automotive production and manufacturing activity
restarted.
Sales in 2Q 2020 decreased by 35.7% to $2.8 billion as compared
to $4.3 billion in 1Q 2020, primarily due to a 31.4% decrease in
steel shipments and a 6.3% decline in average steel selling prices
(with flat steel products down by 6.8% whilst long products
increased by 2.9%).
Exceptional items for 2Q 2020 and 1Q 2020 of $221 million and
$241 million, respectively, consist of inventory charges.
Impairment charges for 2Q 2019 were $600 million related to
impairment of the fixed assets of ArcelorMittal USA following a
downward revision of future cash flow projections reflecting a
sharp decline in near term steel prices and higher raw material
costs.
Operating loss in 2Q 2020 was $327 million as compared to a loss
of $120 million in 1Q 2020 and a loss of $539 million in 2Q 2019.
Operating results for 2Q 2020, 1Q 2020 and 2Q 2019 were impacted by
impairment and exceptional items noted above.
EBITDA in 2Q 2020 of $30 million was significantly lower as
compared to EBITDA of $247 million in 1Q 2020, primarily due to the
loss of profit margin on reduced steel shipments, fixed costs
headwinds (although significantly cut, fixed costs were not fully
reduced in line with lower shipments) and lower automotive sales
resulting in a weaker sales mix.
EBITDA in 2Q 2020 of $30 million was lower as compared to $198
million in 2Q 2019 driven primarily by lower steel shipments
(-30.2%), and negative price-cost effect related to lower average
steel selling prices (-19.9%).
Brazil
(USDm) unless otherwise shown |
2Q 20 |
1Q 20 |
2Q 19 |
1H 20 |
1H 19 |
Sales |
1,192 |
|
1,592 |
|
2,126 |
|
2,784 |
|
4,282 |
|
Operating income |
117 |
|
150 |
|
234 |
|
267 |
|
473 |
|
Depreciation |
(51) |
|
(69) |
|
(79) |
|
(120) |
|
(149) |
|
EBITDA |
168 |
|
219 |
|
313 |
|
387 |
|
622 |
|
Crude steel production (kt) |
1,692 |
|
2,679 |
|
2,830 |
|
4,371 |
|
5,843 |
|
Steel shipments (kt) |
2,059 |
|
2,351 |
|
2,785 |
|
4,410 |
|
5,665 |
|
Average steel selling price (US$/t) |
550 |
|
642 |
|
705 |
|
599 |
|
705 |
|
Brazil segment crude steel production decreased by 36.8% to
1.7Mt in 2Q 2020 as compared to 2.7Mt for 1Q 2020 with declines in
both flat and long products.
The COVID-19 pandemic and government containment efforts have
impacted the Latin America region later than in some other
geographies. As a result, the Company idled ArcelorMittal Tubarão's
blast furnace No3 from April 21, 2020, together with production
curtailments in Argentina and of long product capacity in Brazil,
to match demand levels. Subsequently, given the improving export
market conditions and favorable cost position, the Company has
since restarted activities at the No2 blast furnace at Tubarão, and
some long product capacity in Brazil.
Steel shipments in 2Q 2020 decreased by 12.4% to 2.1Mt as
compared to 2.4Mt in 1Q 2020, primarily due to COVID-19 pandemic
impacts. Overall flat products declined by 15.9% while demand for
long products declined by 8.4%.
Sales in 2Q 2020 declined by 25.2% to $1.2 billion as compared
to $1.6 billion in 1Q 2020. Sales in 2Q 2020 were impacted by 12.4%
lower steel shipments and 14.4% lower average steel selling
prices.
Operating income in 2Q 2020 of $117 million was lower as
compared to $150 million in 1Q 2020 and $234 million in 2Q
2019.
EBITDA in 2Q 2020 decreased by 23.3% to $168 million as compared
to $219 million in 1Q 2020, primarily due to the loss of profit
margin on reduced steel shipments (fixed costs were reduced in line
with lower shipments), on account of lower demand due to the
COVID-19 pandemic, as well as negative translation effects.
EBITDA in 2Q 2020 was 46.4% lower as compared to $313 million in
2Q 2019 primarily due to lower steel shipment volumes (-26.1%).
Europe
(USDm) unless otherwise shown |
2Q 20 |
1Q 20 |
2Q 19 |
1H 20 |
1H 19 |
Sales |
5,800 |
|
7,654 |
|
10,396 |
|
13,454 |
|
20,890 |
|
Operating loss |
(229) |
|
(426) |
|
(301) |
|
(655) |
|
(290) |
|
Depreciation |
(355) |
|
(347) |
|
(313) |
|
(702) |
|
(622) |
|
Impairment charges |
— |
|
(92) |
|
(347) |
|
(92) |
|
(497) |
|
Exceptional items |
— |
|
(191) |
|
— |
|
(191) |
|
— |
|
EBITDA |
126 |
|
204 |
|
359 |
|
330 |
|
829 |
|
Crude steel production (kt) |
7,074 |
|
9,912 |
|
12,079 |
|
16,986 |
|
24,451 |
|
Steel shipments (kt) |
6,817 |
|
9,300 |
|
11,811 |
|
16,117 |
|
23,364 |
|
Average steel selling price (US$/t) |
633 |
|
638 |
|
704 |
|
636 |
|
716 |
|
Europe segment crude steel production decreased by 28.6% to
7.1Mt in 2Q 2020 as compared to 9.9Mt in 1Q 2020 driven by weak
demand caused by the COVID-19 pandemic. Europe segment crude steel
production decreased by 41.4% in 2Q 2020 as compared to 12.1Mt in
2Q 2019 (35.7% lower excluding the impact of the remedy asset sales
related to the ArcelorMittal Italia acquisition).
The COVID-19 pandemic containment measures began impacting
European industrial activity in mid-March. The Company announced
measures on March 19, 2020 to reduce production and the temporary
idling of steel making and finishing assets, including operations
in Italy, France, Spain, Germany, Belgium and Poland, which
continued during 2Q 2020.
Steel shipments in 2Q 2020 declined by 26.7% to 6.8Mt as
compared to 9.3Mt in 1Q 2020 primarily driven by lower flat steel
shipments (-33.8%). Steel shipments were 42.3% lower in 2Q 2020 as
compared to 11.8Mt in 2Q 2019 (37% lower excluding the impact of
remedy assets associated with the ArcelorMittal Italia
acquisition). Steel shipments in Europe started to decline in the
latter part of March and early 2Q 2020 due to the COVID-19
containment measures implemented in the various countries. However,
activity levels are gradually improving, as lockdowns have eased
through 2Q 2020, particularly with automotive and manufacturing
restarts.
Sales in 2Q 2020 were $5.8 billion, 24.2% lower as compared to
$7.7 billion in 1Q 2020, primarily due to 26.7% lower shipment
volumes as discussed above and a weaker sales mix (lower flat
products shipments, in particular automotive sales).
Impairment charges for 2Q 2020 were nil. Impairment charges for
1Q 2020 were $92 million related to the coke plant in Florange,
France, which was closed at the end of April 2020. Impairment
charges for 2Q 2019 were $347 million, in connection with the
remedy asset sales related to ArcelorMittal Italia.
Exceptional items for 2Q 2020 were nil. Exceptional items for 1Q
2020 of $191 million primarily included inventory related charges.
Exceptional items for 2Q 2019 were nil.
Operating loss in 2Q 2020 was $229 million as compared to a loss
of $426 million for 1Q 2020 and an operating loss of $301 million
in 2Q 2019. Operating results for 1Q 2020 and 2Q 2019 were impacted
by impairment charges and exceptional items as discussed above.
EBITDA in 2Q 2020 of $126 million was 38.4% lower as compared to
$204 million in 1Q 2020, primarily due to the loss of profit margin
on reduced steel shipments (fixed costs were reduced in line with
lower shipments) on account of lower demand due to the COVID-19
pandemic, and a negative sales mix impact (lower flat products
shipments, in particular to automotive).
EBITDA in 2Q 2020 decreased by 64.9% as compared to $359 million
in 2Q 2019 primarily due to 42.3% lower steel shipments (37.0%
lower excluding the impact of the remedy asset sales related to the
ArcelorMittal Italia acquisition) and lower average steel selling
prices offset in part by lower costs.
ACIS
(USDm) unless otherwise shown |
2Q 20 |
1Q 20 |
2Q 19 |
1H 20 |
1H 19 |
Sales |
1,184 |
|
1,446 |
|
1,906 |
|
2,630 |
|
3,551 |
|
Operating (loss) / income |
(70) |
|
(60) |
|
114 |
|
(130) |
|
178 |
|
Depreciation |
(75) |
|
(86) |
|
(85) |
|
(161) |
|
(166) |
|
Exceptional items |
— |
|
(21) |
|
— |
|
(21) |
|
— |
|
EBITDA |
5 |
|
47 |
|
199 |
|
52 |
|
344 |
|
Crude steel production (kt) |
1,956 |
|
2,998 |
|
3,252 |
|
4,954 |
|
6,575 |
|
Steel shipments (kt) |
2,395 |
|
2,614 |
|
3,182 |
|
5,009 |
|
5,844 |
|
Average steel selling price (US$/t) |
408 |
|
471 |
|
536 |
|
441 |
|
538 |
|
ACIS segment crude steel production in 2Q 2020 decreased by
34.7% to 2.0Mt as compared to 3.0Mt in 1Q 2020 primarily due to
weak demand caused by the COVID-19 pandemic effects in all regions,
in particular due to the lockdown measures in South
Africa.
The direct COVID-19 impact in 2Q 2020 in the CIS region was more
limited than in South Africa. During the quarter, ArcelorMittal
South Africa took several steps (including significant production
cuts across all operations) to support the country's lockdown.
However, the economic activity levels remain weak and having
reassessed its strategic asset footprint for 2020, the Company has
decided to idle blast furnace C at Vanderbijlpark and the
Vereeniging electric arc furnace until demand recovers9.
Steel shipments in 2Q 2020 decreased by 8.4% to 2.4Mt as
compared to 2.6Mt as at 1Q 2020, mainly due to COVID-19 impact in
South Africa (down 54.1%) offset in part by improved shipments in
Kazakhstan.
Sales in 2Q 2020 decreased by 18.2% to $1.2 billion as compared
to $1.4 billion in 1Q 2020 primarily due to lower steel shipments
(-8.4%) and lower average steel selling prices (-13.4%).
Operating loss in 2Q 2020 was $70 million as compared to an
operating loss of $60 million in 1Q 2020 and an operating income of
$114 million in 2Q 2019.
EBITDA was $5 million in 2Q 2020 as compared to $47 million in
1Q 2020, primarily due to deteriorating results in South Africa
during the lockdown period.9
EBITDA in 2Q 2020 was lower as compared to $199 million in 2Q
2019, primarily due to negative price-cost effect and lower
shipments (-24.7%) driven by COVID-19 impact.
Mining
(USDm) unless otherwise shown |
2Q 20 |
1Q 20 |
2Q 19 |
1H 20 |
1H 19 |
Sales |
1,064 |
|
990 |
|
1,423 |
|
2,054 |
|
2,550 |
|
Operating income |
282 |
|
168 |
|
457 |
|
450 |
|
770 |
|
Depreciation |
(109) |
|
(129) |
|
(113) |
|
(238) |
|
(220) |
|
EBITDA |
391 |
|
297 |
|
570 |
|
688 |
|
990 |
|
|
|
|
|
|
|
Own iron ore production (Mt) |
13.5 |
|
14.4 |
|
14.6 |
|
27.9 |
|
28.7 |
|
Iron ore shipped externally and internally at market price (a)
(Mt) |
9.2 |
|
8.6 |
|
9.9 |
|
17.8 |
|
19.1 |
|
Iron ore shipment - cost plus basis (Mt) |
4.8 |
|
4.8 |
|
5.6 |
|
9.6 |
|
10.2 |
|
Own coal production (Mt) |
1.4 |
|
1.3 |
|
1.5 |
|
2.7 |
|
2.7 |
|
Coal shipped externally and internally at market price (a)
(Mt) |
0.7 |
|
0.8 |
|
0.7 |
|
1.5 |
|
1.4 |
|
Coal shipment - cost plus basis (Mt) |
0.6 |
|
0.6 |
|
0.7 |
|
1.2 |
|
1.4 |
|
(a) Iron ore and coal shipments of market-priced based materials
include the Company’s own mines and share of production at other
mines
Own iron ore production in 2Q 2020 decreased by 5.9% to 13.5Mt
as compared to 14.4Mt in 1Q 2020. The lower production was due in
part to idling of Hibbing joint operations in the US early in May
2020 due to lower internal demand. The mine restarted on July 27,
2020.
Own iron ore production in 2Q 2020 decreased by 7.5% as compared
to 2Q 2019 primarily due to lower production in ArcelorMittal Mines
Canada (AMMC)4 primarily due to COVID-19 impacts following
government restrictions imposed at the mine in early April 2020 and
idling of Hibbing joint operations as discussed above.
Market-priced iron ore shipments in 2Q 2020 increased by 6.4% to
9.2Mt as compared to 8.6Mt in 1Q 2020, primarily driven by higher
shipments in AMMC (recovery following seasonality and unplanned
maintenance in the prior quarter) including increased external
sales to third parties. Market-priced iron ore shipments in 2Q 2020
were 7.3% lower as compared to 2Q 2019 reflecting lower production
levels. The Company expects market-priced iron ore shipments to
decline by ~5% in 2020 as compared to 2019.
Own coal production in 2Q 2020 of 1.4Mt increased by 2.1% as
compared to 1Q 2020 primarily due to higher production at Temirtau
(Kazakhstan) offset by lower production in Princeton (US). Own coal
production in 2Q 2020 decreased by 5.9% to 1.4Mt as compared to
1.5Mt in 2Q 2019 primarily due to lower production in Princeton
(US) offset in part by higher Temirtau (Kazakhstan) production.
Market-priced coal shipments in 2Q 2020 declined to 0.7Mt as
compared to 0.8Mt in 1Q 2020 primarily due to lower Princeton (US)
shipments.
Operating income in 2Q 2020 increased by 67.7% to $282 million
as compared to $168 million in 1Q 2020 and decreased by 38.3% as
compared to $457 million in 2Q 2019.
EBITDA in 2Q 2020 increased by 31.8% to $391 million as compared
to $297 million in 1Q 2020, with positive impact of higher
market-priced iron ore shipments (+6.4%) and seaborne market prices
(+4%), as well as the benefit of lower freight and other operating
costs. EBITDA in 2Q 2020 was 31.3% lower as compared to $570
million in 2Q 2019, primarily due to lower market-priced iron ore
shipments (-7.3%), lower coking coal reference prices (-42.3%),
lower seaborne iron ore reference prices (-7.3%) and lower quality
premia.
Liquidity and Capital
ResourcesFor 2Q 2020 net cash provided by operating
activities was $302 million as compared to $594 million in 1Q 2020
and $1,786 million in 2Q 2019. Net cash provided by operating
activities in 2Q 2020 includes a working capital investment of $392
million (driven primarily by a decrease in trade payables), as
compared to a working capital investment of $109 million in 1Q 2020
and a working capital release of $353 million in 2Q 2019.
Net cash used in investing activities during 2Q 2020 was $364
million as compared to $755 million during 1Q 2020 and $564 million
in 2Q 2019. Capex of $401 million in 2Q 2020 compares to $850
million in 1Q 2020 and $869 million in 2Q 2019. As described
previously, the Company responded to the COVID-19 impact with
actions taken to reduce production and is adapting its costs to the
operating environment. All non-essential capex has been suspended,
while the Mexico hot strip mill project, the agreed Italian
projects and certain projects to reduce CO2 emissions continue.
Maintenance capex is expected to match the reduced operating rates
and the FY 2020 capex guidance of approximately of $2.4 billion is
maintained.
Net cash provided by other investing activities in 2Q 2020 of
$37 million. Net cash provided by other investing activities in 1Q
2020 of $95 million includes $127 million from the sale of the 50%
stake in Global Chartering Limited (GCL)7 offset in part by the
revised quarterly lease payment under the amended ArcelorMittal
Italia agreement signed in March 2020. Net cash provided by other
investing activities in 2Q 2019 of $305 million primarily included
net proceeds from remedy asset sales for the ArcelorMittal Italia
acquisition of $0.5 billion, offset by $0.1 billion partial
reversal of the Indian rupee rolling hedge6 and the quarterly lease
payment for the ArcelorMittal Italia acquisition.
Net cash provided by financing activities in 2Q 2020 was $1.5
billion as compared to net cash used in financing activities in 1Q
2020 of $386 million and net cash provided by financing activities
in 2Q 2019 of $180 million. Net cash provided by financing
activities in 2Q 2020 includes net proceeds from the $2 billion
offering of common shares and mandatorily convertible notes ($750
million common shares and $1.25 billion mandatorily convertible
notes). Net cash used in financing activities in 1Q 2020 of $386
million included a net outflow primarily related to the make whole
redemption of the remaining outstanding amount ($659 million) of
the Company's 6.250% Notes due February 25, 2022. In 2Q 2019, net
cash provided by financing activities included a net inflow of $0.5
billion for new bank financing.
During 2Q 2020, the Company paid dividends of $7 million
including to minority shareholders of Bekaert (Brazil) as compared
to $103 million in 1Q 2020 mainly paid to minority shareholders of
AMMC. During 2Q 2019, the Company paid dividends of $204 million
mainly to ArcelorMittal shareholders.
Outflows from lease payments and other financing activities
(net) were $59 million for 2Q 2020 and 1Q 2020 and $84 million in
2Q 2019.
As of June 30, 2020, the Company’s cash and cash equivalents
amounted to $5.7 billion as compared to $4.3 billion as of March
31, 2020 and $5.0 billion as of December 31, 2019. Gross debt
declined to $13.5 billion as of June 30, 2020, as compared to $13.8
billion as of March 31, 2020 and $14.3 billion as of December 31,
2019. As of June 30, 2020, net debt decreased to $7.8 billion as
compared to $9.5 billion as of March 31, 2020 driven by proceeds
from the capital raised offset in part by foreign exchange on debt
and working capital outflow.
As of June 30, 2020, the Company had liquidity of $11.2 billion,
consisting of cash and cash equivalents of $5.7 billion and $5.5
billion of available credit lines5. The $5.5 billion credit
facilities contain a financial covenant not to exceed 4.25x Net
debt / LTM EBITDA. As of June 30, 2020, the average debt maturity
was 5.1 years.
Key recent developments
- On June 25, 2020, ArcelorMittal Europe announced details of its
plans to become carbon neutral by 2050 in its first climate action
report. Building on the Company’s work that has demonstrated that
the steelmaking process can become carbon neutral, the report
published details of the ground-breaking work underway targeting a
reduction in emissions of 30% by 2030 and carbon neutrality in
2050. The report highlighted that ArcelorMittal Europe is investing
in two routes to carbon neutrality, Smart Carbon and an innovative
DRI-based route, in recognition of the need to act now to reduce
CO2 emissions, in line with the EU’s Green Deal and the Paris
Agreement. The report also calls for a new policy framework, to
support the industry in its transition to carbon neutrality, naming
five market conditions that are needed for Europe’s steelmakers to
compete globally.
- On June 13, 2020, ArcelorMittal held its Annual General Meeting
and Extraordinary General Meeting of shareholders. Due to the
COVID-19 outbreak, the meetings were held by virtual-only format as
permitted by Luxembourg law and 68% of the voting rights were
represented. All resolutions were approved by a strong majority.
The results of the votes were posted shortly afterwards on
https://corporate.arcelormittal.com under ‘Investors – Equity
investors – Shareholders-events – AGM – Annual General Meeting and
Extraordinary General Meeting of shareholders, 13 June 2020’ where
the full documentation regarding the General Meetings is available.
In particular, the shareholders:
- approved the re-election of Mr. Lakshmi N. Mittal, Mr. Bruno
Lafont, Mr. Michel Wurth and the election of Mr. Aditya Mittal and
Mr. Etienne Schneider as directors of ArcelorMittal, for a term of
three years each;
- decided to increase the authorized share capital of the Company
and change the Articles of Association accordingly.
- On May 18, 2020, ArcelorMittal announced that a 5.11%
shareholding notification by BlackRock Inc. was available in the
Luxembourg Stock Exchange’s electronic database OAM on
www.bourse.lu and on the Company’s website
corporate.arcelormittal.com under ‘Investors - Corporate Governance
- Shareholding structure’. The notification was published in
reference to the Luxembourg law and the Grand Ducal regulation of
January 11, 2008, on transparency requirements for issuers of
securities (‘Transparency Law’) in view of a shareholding
notification going above the 5% voting rights threshold.
- On May 11, 2020, ArcelorMittal announced an offering of common
shares and mandatorily convertible notes in a total amount of USD
2.0 billion and the transactions priced on the same day. The share
offering was for an aggregate amount of USD 750 million,
representing approximately 80.9 million common shares at an
offering price of USD 9.27 (EUR 8.57 at a EUR/USD conversion rate
of 1.0816) per share. The mandatorily convertible notes offering
involved USD 1.25 billion aggregate principal amount of mandatorily
convertible notes. The mandatorily convertible notes have a
maturity of 3 years, were issued at 100% of the principal amount
and will be mandatorily converted into common shares of the Company
upon maturity (unless earlier converted at the option of the
holders or ArcelorMittal or upon certain specified events), all in
accordance with their terms. The mandatorily convertible notes pay
a coupon of 5.50% per annum, payable quarterly in arrears. The
minimum conversion price of the mandatorily convertible notes is
equal to USD 9.27, corresponding to the offering price of the
shares as described above, and the maximum conversion price was set
at approximately 117.5% of the minimum conversion price
(corresponding to USD 10.89). The share offering closed on May 14,
2020 and the mandatorily convertible notes offering closed on May
18, 2020. The net proceeds from the offerings will be used for
general corporate purposes, to deleverage and to enhance liquidity.
In particular, they resulted in the cancellation of commitments of
an equivalent amount under the credit facility that ArcelorMittal
had entered into on May 5, 2020. Subsequently, on July 17, 2020,
ArcelorMittal sent a cancellation notice for all unused amounts
under the facility. The cancellation notice was effective on July
22, 2020. As of such date, the facility was terminated.
- On March 4, 2020, ArcelorMittal announced that AM InvestCo and
the Ilva Commissioners had signed an amendment (the ‘Amendment
Agreement’) to the original lease and purchase agreement for Ilva.
The Amendment Agreement outlines the terms for a significant equity
investment by Italian state-sponsored entities into AM InvestCo,
thereby forming the basis for an important new partnership between
ArcelorMittal and the Italian Government. This equity investment,
to be captured in an agreement (the ‘Investment Agreement’) to be
executed by November 30, 2020, will be at least equal to AM
InvestCo’s remaining liabilities against the original purchase
price for Ilva. The Amendment Agreement is structured around a new
industrial plan for Ilva, which involves investment in lower-carbon
steelmaking technologies. The Italian government has recently
designated Invitalia to negotiate with AM InvestCo. In the event
that the Investment Agreement is not executed by November 30, 2020,
AM InvestCo has a withdrawal right, subject to an agreed payment.
Final closing of the lease and purchase agreement is now scheduled
by May 2022, subject to various conditions precedent.
Outlook and guidanceThe easing
of lockdown measures has seen activity levels improving;
nevertheless, demand remains significantly below normal and the
pace and profile of recovery is uncertain. The Company continues to
adapt production levels to market demand and maintains the
flexibility to quickly restart hot idled capacity, on a region by
region basis, as demand improves.
The Company continues to focus on cost reduction initiatives to
protect profitability as it navigates the evolving demand backdrop.
Moving forward, as economic activity recovers the Company will
respond by increasing production, leading to the return of some
fixed cost. But this will be in line with higher volumes, and so
fixed costs per-tonne are not expected to increase.
At the same time, the experience of the last 4-5 months has,
through necessity, forced the business to operate differently. It
has shown that it is possible to operate with a leaner cost
structure. The Company is now using this experience to identify and
develop its options for further structural cost improvements, to
appropriately position the fixed cost base for the post-COVID-19
operating environment. More details will be announced with full
year 2020 results.
As previously guided, the Company expects certain cash needs of
the business (including capex, interest, cash taxes, pensions and
certain other cash costs but excluding working capital movements)
to total $3.5 billion in 2020 and remains focused on achieving its
FY 2020 $1 billion working capital efficiency target. Ultimately
the extent of the release of working capital in 2020 will be
determined by volume and price environment in the final quarter of
the year.
The 1H 2020 cash needs total was $1.5 billion ($1.2 billion
capex, $0.2 billion interest expense and $0.1 billion cash taxes,
pension and other cash costs) which includes certain timing
benefits following the deferral of certain tax payments. As a
result, the Company expects a catch up of this amount in 2H 2020
and as a result cash needs are expected to increase to $2.0 billion
($1.2 billion capex, $0.3 billion interest expense and $0.5 billion
cash taxes, pension and other cash costs).
Despite the challenges caused by COVID-19, the Company’s $2
billion asset portfolio optimization program continues to progress.
Given that suitable and viable buyers have expressed serious
interest in certain assets, the Company remains confident in
completing the program by mid-2021.
The recent capital issuance has reinforced the strength of
ArcelorMittal’s balance sheet and accelerated the achievement of
its net debt target; a strong balance sheet allows the Company to
execute its strategy without limitations and positions it favorably
to benefit from the demand recovery as it occurs.
Upon attainment of its $7bn net debt target the Company expects
to return a proportion of free cash flow annually with the
resumption of the base dividends once the operating environment
normalizes.
ArcelorMittal Condensed Consolidated
Statement of Financial Position1
In millions of U.S. dollars |
Jun 30, 2020 |
Mar 31, 2020 |
Dec 31, 2019 |
ASSETS |
|
|
|
Cash and
cash equivalents |
5,702 |
|
4,298 |
|
4,995 |
|
Trade
accounts receivable and other |
3,048 |
|
3,456 |
|
3,569 |
|
Inventories |
14,269 |
|
15,626 |
|
17,296 |
|
Prepaid
expenses and other current assets |
2,199 |
|
2,551 |
|
2,756 |
|
Total Current Assets |
25,218 |
|
25,931 |
|
28,616 |
|
|
|
|
|
Goodwill and
intangible assets |
4,944 |
|
4,911 |
|
5,432 |
|
Property,
plant and equipment |
33,766 |
|
33,522 |
|
36,231 |
|
Investments
in associates and joint ventures |
6,321 |
|
6,334 |
|
6,529 |
|
Deferred tax
assets |
8,674 |
|
8,669 |
|
8,680 |
|
Other
assets |
2,378 |
|
1,961 |
|
2,420 |
|
Total Assets |
81,301 |
|
81,328 |
|
87,908 |
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
Short-term
debt and current portion of long-term debt |
3,134 |
|
3,147 |
|
2,869 |
|
Trade
accounts payable and other |
10,019 |
|
11,968 |
|
12,614 |
|
Accrued
expenses and other current liabilities |
6,179 |
|
5,645 |
|
5,804 |
|
Total Current Liabilities |
19,332 |
|
20,760 |
|
21,287 |
|
|
|
|
|
Long-term
debt, net of current portion |
10,414 |
|
10,650 |
|
11,471 |
|
Deferred tax
liabilities |
2,039 |
|
2,075 |
|
2,331 |
|
Other
long-term liabilities |
11,918 |
|
11,820 |
|
12,336 |
|
Total Liabilities |
43,703 |
|
45,305 |
|
47,425 |
|
|
|
|
|
Equity
attributable to the equity holders of the parent |
35,774 |
|
34,249 |
|
38,521 |
|
Non-controlling interests |
1,824 |
|
1,774 |
|
1,962 |
|
Total Equity |
37,598 |
|
36,023 |
|
40,483 |
|
Total Liabilities and Shareholders’ Equity |
81,301 |
|
81,328 |
|
87,908 |
|
ArcelorMittal Condensed Consolidated Statement of
Operations1
|
Three months ended |
Six months ended |
In
millions of U.S. dollars unless otherwise shown |
Jun 30, 2020 |
Mar 31, 2020 |
Jun 30, 2019 |
Jun 30, 2020 |
Jun 30, 2019 |
Sales |
10,976 |
|
14,844 |
|
19,279 |
|
25,820 |
|
38,467 |
|
Depreciation
(B) |
(739) |
|
(771) |
|
(766) |
|
(1,510) |
|
(1,499) |
|
Impairment
charges (B) |
— |
|
(92) |
|
(947) |
|
(92) |
|
(1,097) |
|
Exceptional
items3 (B) |
(221) |
|
(457) |
|
— |
|
(678) |
|
— |
|
Operating (loss) / income (A) |
(253) |
|
(353) |
|
(158) |
|
(606) |
|
611 |
|
Operating
margin % |
(2.3) |
% |
(2.4) |
% |
(0.8) |
% |
(2.3) |
% |
1.6 |
% |
|
|
|
|
|
|
(Loss) /
income from associates, joint ventures and other investments |
(15) |
|
142 |
|
94 |
|
127 |
|
302 |
|
Net interest
expense |
(112) |
|
(115) |
|
(154) |
|
(227) |
|
(315) |
|
Foreign
exchange and other net financing gain / (loss) |
36 |
|
(451) |
|
(173) |
|
(415) |
|
(404) |
|
(Loss) / income before taxes and non-controlling
interests |
(344) |
|
(777) |
|
(391) |
|
(1,121) |
|
194 |
|
Current tax expense |
(100) |
|
(162) |
|
(225) |
|
(262) |
|
(405) |
|
Deferred tax (expense) / benefit |
(84) |
|
(178) |
|
211 |
|
(262) |
|
256 |
|
Income tax
expense |
(184) |
|
(340) |
|
(14) |
|
(524) |
|
(149) |
|
(Loss) / income including non-controlling
interests |
(528) |
|
(1,117) |
|
(405) |
|
(1,645) |
|
45 |
|
Non-controlling interests loss |
(31) |
|
(3) |
|
(42) |
|
(34) |
|
(78) |
|
Net
loss attributable to equity holders of the parent |
(559) |
|
(1,120) |
|
(447) |
|
(1,679) |
|
(33) |
|
|
|
|
|
|
|
Basic loss per common share ($) |
(0.50) |
|
(1.11) |
|
(0.44) |
|
(1.57) |
|
(0.03) |
|
Diluted loss per common share ($) |
(0.50) |
|
(1.11) |
|
(0.44) |
|
(1.57) |
|
(0.03) |
|
|
|
|
|
|
|
Weighted average common shares outstanding (in millions) |
1,119 |
|
1,012 |
|
1,014 |
|
1,066 |
|
1,013 |
|
Diluted weighted average common shares outstanding (in
millions) |
1,119 |
|
1,012 |
|
1,014 |
|
1,066 |
|
1,013 |
|
|
|
|
|
|
|
OTHER INFORMATION |
|
|
|
|
|
EBITDA (C =
A-B) |
707 |
|
967 |
|
1,555 |
|
1,674 |
|
3,207 |
|
EBITDA
Margin % |
6.4 |
% |
6.5 |
% |
8.1 |
% |
6.5 |
% |
8.3 |
% |
|
|
|
|
|
|
Own iron ore
production (Mt) |
13.5 |
|
14.4 |
|
14.6 |
|
27.9 |
|
28.7 |
|
Crude steel
production (Mt) |
14.4 |
|
21.1 |
|
23.8 |
|
35.5 |
|
47.8 |
|
Steel shipments (Mt) |
14.8 |
|
19.5 |
|
22.8 |
|
34.3 |
|
44.6 |
|
ArcelorMittal Condensed Consolidated Statement of
Cash flows1
|
Three months ended |
Six months ended |
In millions
of U.S. dollars |
Jun 30, 2020 |
Mar 31, 2020 |
Jun 30, 2019 |
Jun 30, 2020 |
Jun 30, 2019 |
Operating
activities: |
|
|
|
|
|
Loss
attributable to equity holders of the parent |
(559) |
|
(1,120) |
|
(447) |
|
(1,679) |
|
(33) |
|
Adjustments
to reconcile net loss to net cash provided by operations: |
|
|
|
|
|
Non-controlling interests loss |
31 |
|
3 |
|
42 |
|
34 |
|
78 |
|
Depreciation
and impairment |
739 |
|
863 |
|
1,713 |
|
1,602 |
|
2,596 |
|
Exceptional
items3 |
221 |
|
457 |
|
— |
|
678 |
|
— |
|
Loss /
(income) from associates, joint ventures and other investments |
15 |
|
(142) |
|
(94) |
|
(127) |
|
(302) |
|
Deferred tax
expense / (benefit) |
84 |
|
178 |
|
(211) |
|
262 |
|
(256) |
|
Change in
working capital |
(392) |
|
(109) |
|
353 |
|
(501) |
|
(200) |
|
Other
operating activities (net) |
163 |
|
464 |
|
430 |
|
627 |
|
874 |
|
Net
cash provided by operating activities (A) |
302 |
|
594 |
|
1,786 |
|
896 |
|
2,757 |
|
Investing
activities: |
|
|
|
|
|
Purchase of
property, plant and equipment and intangibles (B) |
(401) |
|
(850) |
|
(869) |
|
(1,251) |
|
(1,816) |
|
Other
investing activities (net) |
37 |
|
95 |
|
305 |
|
132 |
|
559 |
|
Net
cash used in investing activities |
(364) |
|
(755) |
|
(564) |
|
(1,119) |
|
(1,257) |
|
Financing activities: |
|
|
|
|
|
Net
(payments) / proceeds relating to payable to banks and long-term
debt |
(395) |
|
(224) |
|
468 |
|
(619) |
|
332 |
|
Dividends
paid |
(7) |
|
(103) |
|
(204) |
|
(110) |
|
(250) |
|
Share
buyback |
— |
|
— |
|
— |
|
— |
|
(90) |
|
Common share offering |
740 |
|
— |
|
— |
|
740 |
|
— |
|
Proceeds from Mandatorily Convertible Notes |
1,237 |
|
— |
|
— |
|
1,237 |
|
— |
|
Lease
payments and other financing activities (net) |
(59) |
|
(59) |
|
(84) |
|
(118) |
|
(156) |
|
Net
cash provided by / (used in) financing activities |
1,516 |
|
(386) |
|
180 |
|
1,130 |
|
(164) |
|
Net increase
/ (decrease) in cash and cash equivalents |
1,454 |
|
(547) |
|
1,402 |
|
907 |
|
1,336 |
|
Cash and
cash equivalents transferred from assets held for sale |
— |
|
— |
|
21 |
|
— |
|
10 |
|
Effect of
exchange rate changes on cash |
(13) |
|
(131) |
|
17 |
|
(144) |
|
2 |
|
Change in cash and cash equivalents |
1,441 |
|
(678) |
|
1,440 |
|
763 |
|
1,348 |
|
|
|
|
|
|
|
Free cash flow (C=A+B) |
(99) |
|
(256) |
|
917 |
|
(355) |
|
941 |
|
Appendix 1: Product shipments by
region(1)
(000'kt) |
2Q 20 |
1Q 20 |
2Q 19 |
1H 20 |
1H 19 |
Flat |
3,328 |
|
4,853 |
|
4,732 |
|
8,181 |
|
9,482 |
|
Long |
485 |
|
846 |
|
873 |
|
1,331 |
|
1,594 |
|
NAFTA |
3,797 |
|
5,536 |
|
5,438 |
|
9,333 |
|
10,757 |
|
Flat |
1,074 |
|
1,277 |
|
1,563 |
|
2,351 |
|
3,262 |
|
Long |
994 |
|
1,085 |
|
1,236 |
|
2,079 |
|
2,430 |
|
Brazil |
2,059 |
|
2,351 |
|
2,785 |
|
4,410 |
|
5,665 |
|
Flat |
4,649 |
|
7,023 |
|
8,824 |
|
11,672 |
|
17,471 |
|
Long |
2,054 |
|
2,170 |
|
2,883 |
|
4,224 |
|
5,704 |
|
Europe |
6,817 |
|
9,300 |
|
11,811 |
|
16,117 |
|
23,364 |
|
CIS |
2,032 |
|
1,827 |
|
2,064 |
|
3,859 |
|
3,681 |
|
Africa |
361 |
|
786 |
|
1,113 |
|
1,147 |
|
2,162 |
|
ACIS |
2,395 |
|
2,614 |
|
3,182 |
|
5,009 |
|
5,844 |
|
Note: “Others and eliminations” are not presented in the
table
Appendix 2a: Capital expenditures(1)
(USDm) |
2Q 20 |
1Q 20 |
2Q 19 |
1H 20 |
1H 19 |
NAFTA |
107 |
|
205 |
|
144 |
|
312 |
|
326 |
|
Brazil |
29 |
|
67 |
|
80 |
|
96 |
|
164 |
|
Europe |
168 |
|
323 |
|
337 |
|
491 |
|
690 |
|
ACIS |
46 |
|
122 |
|
115 |
|
168 |
|
252 |
|
Mining |
46 |
|
121 |
|
125 |
|
167 |
|
240 |
|
Total |
401 |
|
850 |
|
869 |
|
1,251 |
|
1,816 |
|
Note: “Others” are not presented in the table
Appendix 2b: Capital expenditure
projectsThe following tables summarize the Company’s
principal growth and optimization projects involving significant
capex.
Completed projects in most recent
quarter
Segment |
Site
/ unit |
Project |
Capacity / details |
Actual completion |
Europe |
Sosnowiec
(Poland) |
Modernization of
Wire Rod Mill |
Upgrade rolling
technology improving the mix of HAV products and increase volume by
90kt |
4Q 2019 |
ACIS |
ArcelorMittal Kryvyi Rih (Ukraine) |
New LF&CC 3 |
Facilities upgrade to switch from ingot to continuous caster route.
Additional billets of up to 145kt over ingot route through yield
increase |
2Q 2019 |
ACIS |
ArcelorMittal Kryvyi Rih (Ukraine) |
New LF&CC 2 |
Facilities upgrade to switch from ingot to continuous caster route.
Additional billets of up to 145kt over ingot route through yield
increase |
1Q 2020 |
Ongoing projects
Segment |
Site
/ unit |
Project |
Capacity / details |
Forecasted completion |
NAFTA |
Mexico |
New Hot strip mill |
Production capacity of 2.5Mt/year |
2021(a) |
NAFTA |
ArcelorMittal Dofasco (Canada) |
Hot Strip Mill Modernization |
Replace existing three end of life coilers with two states of the
art coilers and new runout tables |
2021(b) |
NAFTA |
Burns Harbor (US) |
New Walking Beam Furnaces |
Two new walking beam reheat furnaces bringing benefits on
productivity, quality and operational cost |
2021 |
Brazil |
ArcelorMittal Vega Do Sul |
Expansion project |
Increase hot dipped / cold rolled coil capacity and construction of
a new 700kt continuous annealing line (CAL) and continuous
galvanising line (CGL) combiline |
2023(c) |
Brazil |
Juiz de Fora |
Melt shop expansion |
Increase in meltshop capacity by 0.2Mt/year |
On hold(d) |
Brazil |
Monlevade |
Sinter plant, blast furnace and melt shop |
Increase in liquid steel capacity by 1.2Mt/year;Sinter feed
capacity of 2.3Mt/year |
On hold(d) |
Mining |
Liberia |
Phase 2 expansion project |
Increase production capacity to 15Mt/year |
Under review(e) |
a) On September 28, 2017, ArcelorMittal announced a
major $1.0 billion, investment programme at its Mexican operations,
which is focused on building ArcelorMittal Mexico’s downstream
capabilities, sustaining the competitiveness of its mining
operations and modernizing its existing asset base. The programme
is designed to enable ArcelorMittal Mexico to meet the anticipated
increased demand requirements from domestic customers, realize in
full ArcelorMittal Mexico’s production capacity of 5.3 million
tonnes and significantly enhance the proportion of higher
added-value products in its product mix, in-line with the Company’s
Action 2020 plan. The main investment will be the construction of a
new hot strip mill. Upon completion, the project will enable
ArcelorMittal Mexico to produce c. 2.5 million tonnes of flat
rolled steel, long steel c. 1.8 million tonnes and the remainder
made up of semi-finished slabs. Coils from the new hot strip mill
will be supplied to domestic, non-auto, general industry customers.
The hot strip mill project commenced late 4Q 2017 and is expected
to be completed in 2021.
b) Investment in ArcelorMittal Dofasco (Canada) to
modernize the hot strip mill. The project is to install two new
state of the art coilers and runout tables to replace three end of
life coilers. The strip cooling system will be upgraded and include
innovative power cooling technology to improve product capability.
The project is expected to be completed in 2021.
c) In August 2018, ArcelorMittal announced the
resumption of the Vega Do Sul expansion to provide an additional
700kt of cold-rolled annealed and galvanized capacity to serve the
growing domestic market. The ~$0.3 billion investment programme to
increase rolling capacity with construction of a new continuous
annealing line and CGL combiline (and the option to add a ca. 100kt
organic coating line to serve construction and appliance segments),
and upon completion, will strengthen ArcelorMittal’s position in
the fast growing automotive and industry markets through Advanced
High Strength Steel products. The investments will look to
facilitate a wide range of products and applications whilst further
optimizing current ArcelorMittal Vega facilities to maximize site
capacity and its competitiveness, considering comprehensive digital
and automation technology. The project is expected to be completed
in 2023.
d) Although the Monlevade wire rod expansion
project and Juiz de Fora rebar expansion were completed in
2015, both the melt shop expansion (in Juiz de Fora) and the
sinter plant, blast furnace and meltshop (in Monlevade) projects
are currently on hold and are expected to be completed upon Brazil
domestic market recovery.
e) ArcelorMittal had previously announced a Phase 2
project that envisaged the construction of 15 million tonnes of
concentrate sinter fines capacity and associated infrastructure.
The Phase 2 project was initially delayed due to the declaration of
force majeure by contractors in August 2014 due to the Ebola virus
outbreak in West Africa, and then reassessed following rapid iron
ore price declines over the ensuing period. ArcelorMittal Liberia
has completed the detailed feasibility study and is working on the
final investment submission.
Appendix 3: Debt repayment schedule as of
June 30, 2020
(USD billion) |
2020 |
2021 |
2022 |
2023 |
2024 |
>2024 |
Total |
Bonds |
0.6 |
0.3 |
0.8 |
1.4 |
1.9 |
3.6 |
8.6 |
Commercial paper |
1.0 |
— |
— |
— |
— |
— |
1.0 |
Other loans |
0.7 |
1.0 |
0.5 |
0.9 |
0.2 |
0.6 |
3.9 |
Total gross debt |
2.3 |
1.3 |
1.3 |
2.3 |
2.1 |
4.2 |
13.5 |
Appendix 4: Reconciliation of gross debt to net
debt
(USD
million) |
Jun 30, 2020 |
Mar 31, 2020 |
Dec 31, 2019 |
Gross debt |
13,548 |
|
13,797 |
|
14,340 |
|
Less: Cash and cash equivalents |
(5,702) |
|
(4,298) |
|
(4,995) |
|
Net debt |
7,846 |
|
9,499 |
|
9,345 |
|
|
|
|
|
Net debt / LTM EBITDA |
2.1 |
|
2.1 |
|
1.8 |
|
Appendix 5: Terms and
definitionsUnless indicated otherwise, or the context
otherwise requires, references in this earnings release report to
the following terms have the meanings set out next to them
below:Adjusted net (loss) / income: refers to
reported net (loss)/income less impairment and exceptional
items.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.EBITDA: operating results plus
depreciation, impairment charges and exceptional
items.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.Foreign exchange and other net
financing gain/ (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.Free
cash flow (FCF): refers to net cash provided by operating
activities less capex.Gross debt: long-term debt
and short-term debt.Liquidity: cash and cash
equivalents plus available credit lines excluding back-up lines for
the commercial paper program.LTIF: lost time
injury frequency rate equals lost time injuries per 1,000,000
worked hours, based on own personnel and
contractors.MT: refers to million metric
tonnesMarket-priced tonnes: represent amounts of
iron ore and coal from ArcelorMittal mines that could be sold to
third parties on the open market. Market-priced tonnes that are not
sold to third parties are transferred from the Mining segment to
the Company’s steel producing segments and reported at the
prevailing market price. Shipments of raw materials that do not
constitute market-priced tonnes are transferred internally and
reported on a cost-plus basis.Mining segment
sales: i) “External sales”: mined product sold to third
parties at market price; ii) “Market-priced tonnes”: internal sales
of mined product to ArcelorMittal facilities and reported at
prevailing market prices; iii) “Cost-plus tonnes” - internal sales
of mined product to ArcelorMittal facilities on a cost-plus basis.
The determinant of whether internal sales are reported at market
price or cost-plus is whether the raw material could practically be
sold to third parties (i.e. there is a potential market for the
product and logistics exist to access that market).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 (as used in the Company’s financial
reporting) over the last twelve months.Net interest
expense: includes interest expense less interest
incomeOn-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: NAFTA segment
includes the Flat, Long and Tubular operations of USA, Canada and
Mexico. The Brazil segment includes the Flat, Long and Tubular
operations of Brazil and its neighbouring countries including
Argentina, Costa Rica and Venezuela. The Europe segment comprises
the Flat, Long and Tubular operations of the European business, as
well as Downstream Solutions. The ACIS segment includes the Flat,
Long and Tubular operations of Kazakhstan, Ukraine and South
Africa. Mining segment includes iron ore and coal
operations.Own iron ore production: includes total
of all finished production of fines, concentrate, pellets and lumps
and includes share of production.Seaborne iron ore
reference prices: refers to iron ore prices for 62% Fe CFR
ChinaShipments: 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.Steel-only EBITDA: calculated as EBITDA
total less Mining segment EBITDA.Steel-only
EBITDA/tonne: calculated as steel-only EBITDA divided by
total steel shipments.Working capital change (working
capital investment / release): Movement of change in
working capital - trade accounts receivable plus inventories less
trade and other accounts payable.YoY: refers to
year-on-year.
Appendix 6: Adjusted net (loss) /
income
(USDm) |
2Q 20 |
1Q 20 |
2Q 19 |
1H 20 |
1H 19 |
Net loss |
(559) |
|
(1,120) |
|
(447) |
|
(1,679) |
|
(33) |
|
Impairment |
— |
|
(92) |
|
(947) |
|
(92) |
|
(1,097) |
|
Exceptional items |
(221) |
|
(457) |
|
— |
|
(678) |
|
— |
|
Adjusted net (loss) / income |
(338) |
|
(571) |
|
500 |
|
(909) |
|
1,064 |
|
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. This press release also includes
certain non-GAAP financial/alternative performance measures.
ArcelorMittal presents EBITDA, and EBITDA/tonne, which are non-GAAP
financial/alternative performance measures and calculated as shown
in the Condensed Consolidated Statement of Operations, as
additional measures to enhance the understanding of operating
performance. ArcelorMittal believes such indicators are relevant to
describe trends relating to cash generating activity and provides
management and investors with additional information for comparison
of the Company’s operating results to the operating results of
other companies. Segment information presented in this press
release are prior to inter-segment eliminations and certain
adjustments made to operating result 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. 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. ArcelorMittal also presents Adjusted net (loss)
/ income as it believes it is a useful measure for the underlying
business performance excluding impairment and exceptional items.
ArcelorMittal also presents free cash flow (FCF), which is a
non-GAAP financial/alternative performance measure calculated as
shown in the Condensed Consolidated Statement of Cash Flows,
because it believes it is a useful supplemental measure for
evaluating the strength of its cash generating capacity. The
Company also presents the ratio of net debt to EBITDA for the last
twelve-month period, which investors may find useful in
understanding the Company's ability to service its debt. Such
non-GAAP/alternative performance measures may not be comparable to
similarly titled measures applied by other companies. Non-GAAP
financial/alternative performance measures should be read in
conjunction with, and not as an alternative for, ArcelorMittal's
financial information prepared in accordance with IFRS.
- Excluding the impact of ArcelorMittal Italia, the LTIF was 0.5x
for 2Q 2020 as compared to 0.72x for 1Q 2020 and 0.68x for 2Q
2019.
- Impairment charges for 1Q 2020 were $92 million and relate to
the permanent coke plant closure in Florange, France, at the end of
April 2020. Exceptional items for 2Q 2020 of $221 million consist
of inventory charges in NAFTA. Exceptional items of $457 million
for 1Q 2020 primarily include inventory related charges in NAFTA
and Europe due to a weaker steel pricing outlook driven by COVID-19
impacts. The Company considered the impact of the COVID-19 outbreak
as an impairment indicator at the end of June 30, 2020 for certain
steel operations where the recoverable amounts were not
significantly higher than their carrying amounts in the last
value-in-use impairment test of 2019. Accordingly, it updated
future cash flow projections to reflect latest forecasts available
for 3Q 2020 and 4Q 2020 and, as a result, concluded that no
impairment charge was required as of June 30, 2020.
- ArcelorMittal Mines Canada, otherwise known as ArcelorMittal
Mines and Infrastructure Canada.
- On December 19, 2018, ArcelorMittal signed a $5,500,000,000
Revolving Credit Facility, with a five-year maturity plus two
one-year extension options. During the fourth quarter of 2019,
ArcelorMittal executed the option to extend the facility to
December 19, 2024. The extension was completed for $5.4 billion of
the available amount, with the remaining $0.1 billion remaining
with a maturity of December 19, 2023 as of June 30, 2020. The
facility may be further extended for an additional year in December
2020. As of June 30, 2020, the $5.5 billion revolving credit
facility was fully available. On May 5, 2020, ArcelorMittal and a
syndicate of banks signed a credit facility with tranches of $0.7
billion and €2.1 billion (the “New Credit Facility”). Subsequently,
the Company's share offering, which closed on May 14, 2020, and the
mandatorily convertible notes offering, which closed on May 18,
2020, resulted in the cancellation of commitments of an equivalent
amount under the credit facility that ArcelorMittal had entered
into on May 5, 2020. Subsequently, on July 17, 2020, ArcelorMittal
sent a cancellation notice for all unused amounts under the
facility. The cancellation notice was effective on July 22, 2020.
As of such date, the facility was terminated.
- Relates to the rollover of the Indian rupee hedge at market
price which protects the dollar funds needed for the Essar
transaction as per the resolution plan approved by the Committee of
Creditors and the National Company Law Tribunal in Ahmedabad. The
hedge was unwound on the closing of the acquisition in 4Q 2019. On
October 17, 2018, the Company announced that it had approved a
payment of 7,469 crore rupees (c.$1 billion, subsequently paid) to
the financial creditors of Uttam Galva and KSS Petron to clear
overdue debts in order that the offer it submitted for Essar Steel
India Limited (“ESIL”) on April 2, 2018 would be eligible and
considered by ESIL’s Committee of Creditors.
- On December 23, 2019, ArcelorMittal, announced it had signed a
share purchase agreement with DryLog Ltd (DryLog) for the sale of a
50% stake in Global Chartering Limited (GCL), its wholly owned
shipping business, and formed a 50:50 shipping joint venture with
DryLog. The transaction closed on December 31, 2019. The stake sale
and JV formation impacted ArcelorMittal’s net debt by $527 million,
with $400 million on completion in 4Q 2019 and $127 million
received in 1Q 2020, which relates to a repayment of a loan from
Global Chartering. The transaction is part of ArcelorMittal’s
commitment to unlock up to $2 billion of value from its asset
portfolio by mid-year 2021.
- AMNS India key performance indicators for 2Q 2020 are as
follows: 2Q 2020 crude steel production of 1.2Mt (vs 1.7Mt in 1Q
2020) and EBITDA of $107 million (vs. $140 million in 1Q 2020).
June 2020 annualized crude steel production of 7.0Mt. AMNS India’s
operations were impacted by the COVID-19 pandemic during 2Q 2020
with lockdown measures (in particular impacting April 2020). As
lock down measures lift the assets are currently running at higher
utilization levels then the low levels during the peak impacts
during 2Q 2020. Maintenance capital expenditures, interest expenses
and cash tax expense for 2020 are less than $250 million per annum.
ESIL has acquired the Odisha Slurry Pipeline Infrastructure for net
$245 million (Rs 1,860-crore); this secures an important
infrastructure asset for raw material supply to Hazira steel
plant.
- On July 16, 2020, ArcelorMittal South Africa ("AMSA") provided
a trading update to the market indicating that following an already
challenging 2019, 1H 2020 proved to be an incredibly difficult and
extraordinary period driven by the COVID-19 pandemic. AMSA remains
focused on ensuring a sustainable future and having reassessed its
strategic asset footprint for 2020, it has been decided to idle
Blast Furnace No C at Vanderbijlpark, and the Vereeniging Electric
Arc Furnace until demand recovers. AMSA anticipates that it will
take some time for steel demand to return to historical levels, and
taking cognizance of the asset footprint review, a large- scale
labor re-organisation in terms of Section 189(3) of the Labor
Relations Act 66 of 1995, was announced on June 18, 2020.
Second quarter and half year 2020 earnings
analyst conference callArcelorMittal management (including
CEO and CFO) will host a conference call for members of the
investment community to present and comment on the three-month and
six-month periods ended June 30, 2020 on: Thursday July 30,
2020 at 9.30am US Eastern time; 14.30pm London time and 15.30pm
CET.
The dial in numbers are: |
|
|
Location |
Toll free
dial in numbers |
Local dial in numbers |
Participant |
UK
local: |
0808 238
0676 |
+44 (0)203 057 6900 |
7995055# |
US local: |
+1 866 220 1433 |
+1 347 903 0960 |
7995055# |
France: |
0805 101 469 |
+33 1 7070 6079 |
7995055# |
Germany: |
0800 588 9185 |
+49 69 2222 2624 |
7995055# |
Spain: |
900 828 532 |
+34 914 144 464 |
7995055# |
Luxembourg: |
800 23 023 |
+352 2786 0311 |
7995055# |
Join the call via telephone using the participant
code 7995055# or alternatively use the live audio webcast link
https://interface.eviscomedia.com/player/1123/.
Please visit the results section on our website to
listen to the reply once the event has finished
https://corporate.arcelormittal.com/investors/results
Forward-Looking StatementsThis
document may contain 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.
About ArcelorMittalArcelorMittal
is the world's leading steel and mining company, with a presence in
~60 countries and an industrial footprint in 18 countries. Guided
by a philosophy to produce safe, sustainable steel, we are the
leading supplier of quality steel in the major global steel markets
including automotive, construction, household appliances and
packaging, with world-class research and development and
outstanding distribution networks.
Through our core values of sustainability, quality
and leadership, we operate responsibly with respect to the health,
safety and wellbeing of our employees, contractors and the
communities in which we operate. For us, steel is the fabric of
life, as it is at the heart of the modern world from railways to
cars and washing machines. We are actively researching and
producing steel-based technologies and solutions that make many of
the products and components people use in their everyday lives more
energy efficient.
We are one of the world’s five largest producers of
iron ore and metallurgical coal. With a geographically diversified
portfolio of iron ore and coal assets, we are strategically
positioned to serve our network of steel plants and the external
global market. While our steel operations are important customers,
our supply to the external market is increasing as we grow. In
2019, ArcelorMittal had revenues of $70.6 billion and crude steel
production of 89.8 million metric tonnes, while own iron ore
production reached 57.1 million metric tonnes.
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: http://corporate.arcelormittal.com/
EnquiriesArcelorMittal 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 0207 629 7988. Contact: Paul Weigh +44
203 214 2419
- 2Q20 Earnings release FINAL_30 July 2020
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