Luxembourg, November 5, 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 nine-month periods ended September 30,
2020.
Highlights:
- Health and safety: LTIF rate2 of 0.95x in 3Q 2020 as compared
to 0.77x in 2Q 2020; 0.92x in 9M 2020
- Improved operating performance in 3Q 2020 reflects a gradual
recovery in steel end markets (in particular automotive) following
the severe impacts of COVID-19 lockdowns on economic activity in 2Q
2020 as well as stronger mining segment performance
- Operating income of $0.7bn in 3Q 2020 (including $0.6bn net
reversal of impairments3) as compared to an operating loss of
$0.3bn in 2Q 2020 (which included $0.2bn exceptional items3)
- EBITDA of $0.9bn in 3Q 2020, 27.4% higher as compared to $0.7bn
in 2Q 2020, primarily reflects: the impacts on the steel business
of 17.5% higher shipments and an improved sales mix (proportionally
more sales to automotive customers), offset in part by a negative
price-cost effect; and the impacts of higher marketable iron ore
prices (+26.2%) and market priced iron ore shipments (+7.5%)
driving improved mining segment results
- Net loss of $0.3bn in 3Q 2020 as compared to net loss of $0.6bn
in 2Q 2020; excluding impairment items partially offset by deferred
tax expense (each related to the agreed sale of ArcelorMittal
USA3), adjusted net loss in 3Q 2020 was $0.2bn as compared to
adjusted net loss of $0.3bn in 2Q 2020 (which excluded exceptional
items)
- Free cash inflow of $1.3bn in 3Q 2020 (net cash provided by
operating activities of $1.8bn less $0.5bn capex) includes a
working capital release of $1.1bn. 9M 2020 working capital release
of $0.6bn with full year 2020 guidance of between $0.6bn -
$1.0bn
- Gross debt of $13.7bn and net debt of $7.0bn as of September
30, 2020; net debt reduced by $0.9bn during the quarter primarily
driven by positive free cash flow offset in part by forex impacts;
net debt lower by $3.7bn as compared to $10.7bn as of September 30,
2019
Strategic update:
- Deleveraging complete: The Company has long
prioritized its $7bn net debt target; having now achieved this
level, the Company will now prioritize cash returns to
shareholders, starting with the $500m share buyback program
initiated on September 28, 2020 (subsequently completed on October
30, 2020); the Company intends to present an updated distribution
policy at the time of full year 2020 results
- $2bn asset portfolio optimization program
complete: The agreed sale of 100% of the shares of
ArcelorMittal USA (which is expected to close within 4Q 2020)
completes the Company’s asset portfolio optimization target 9
months ahead of schedule
- Strategic repositioning of North American
platform: The Company maintains a strong presence in the
NAFTA market with cost competitive assets in Canada/Mexico, state
of the art finishing assets at Calvert (with the announced
intention to build an EAF), and technology leading R&D
capabilities
- Green Steel: The Company will offer its
customers green steel9 by way of a certification system linked to
CO2 savings, achieved through investment in decarbonization
technologies, starting in 2020, with plans to scale up this offer
to 600kt by 2022
- 2050 net zero group carbon emissions target: A
group-wide commitment focused on Hydrogen-DRI and Smart Carbon
technologies which if supported by appropriate policy framework can
make carbon-neutral steel making a reality
Financial highlights
(on the basis of
IFRS1):
(USDm) unless otherwise
shown |
3Q 20 |
2Q 20 |
3Q 19 |
9M 20 |
9M 19 |
Sales |
13,266 |
|
10,976 |
|
16,634 |
|
39,086 |
|
55,101 |
|
Operating income / (loss) |
718 |
|
(253) |
|
297 |
|
112 |
|
908 |
|
Net loss attributable to equity holders of the parent |
(261) |
|
(559) |
|
(539) |
|
(1,940) |
|
(572) |
|
Basic loss per common share (US$) |
(0.21) |
|
(0.50) |
|
(0.53) |
|
(1.73) |
|
(0.56) |
|
|
|
|
|
|
|
Operating income/ (loss) / tonne (US$/t) |
41 |
|
(17) |
|
15 |
|
2 |
|
14 |
|
EBITDA |
901 |
|
707 |
|
1,063 |
|
2,575 |
|
4,270 |
|
EBITDA/ tonne (US$/t) |
52 |
|
48 |
|
53 |
|
50 |
|
66 |
|
Steel-only EBITDA/ tonne (US$/t) |
23 |
|
21 |
|
34 |
|
27 |
|
45 |
|
|
|
|
|
|
|
Crude steel production (Mt) |
17.2 |
14.4 |
22.2 |
52.7 |
70.1 |
Steel shipments (Mt) |
17.5 |
14.8 |
20.2 |
51.8 |
64.8 |
Own iron ore production (Mt) |
14.8 |
13.5 |
13.6 |
42.7 |
42.3 |
Iron ore shipped at market price (Mt) |
9.8 |
9.2 |
8.4 |
27.6 |
27.5 |
Commenting, Mr. Lakshmi N. Mittal,
ArcelorMittal Chairman and CEO, said:
“The third quarter marked an improved operating
performance for the Group with steel markets recovering gradually
from the very challenging second quarter after the ending of
lockdowns. All steel segments saw improved demand with Brazil and
ACIS showing particularly encouraging profitability improvement.
Our mining segment also delivered a strong performance taking
advantage of the higher iron-ore price environment and
outperforming production targets.
The quarter was also characterized by strong cash flow
generation and the achievement of some important strategic
milestones. In this very tough environment, we take considerable
satisfaction from the fact that our deleveraging program and asset
disposal program are now complete. Following the agreed sale of
ArcelorMittal USA, we can now prioritize returning cash to
shareholders.
During the quarter we also announced a Group 2050 net zero
target and the launch of a green steel product for the first time.
We remain hopeful that we will start to see the introduction of the
policy required to unlock potential and deliver real progress in
the coming years.
The recent rise in COVID-19 cases worldwide makes it prudent to
remain cautious about the outlook and we should be prepared for
further volatility. However, our success to date in protecting our
people, assets, profitability and cashflow throughout the crisis
puts us in a good position to take advantage of further economic
recovery. We have also learned valuable lessons in how to work
smarter and we are determined to continue these efforts to
continuously improve our productivity and profitability on an
ongoing basis.
Finally, I would like to take this opportunity to thank all our
employees who continue to demonstrate great drive, commitment and
resilience to keep ArcelorMittal inventing and producing the
ever-smarter steels that will be required for the future.”
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 0.95x in the
third quarter of 2020 ("3Q 2020") as compared to 0.77x in second
quarter of 2020 ("2Q 2020") and 1.36x in third quarter of 2019 ("3Q
2019"). Excluding the impact of ArcelorMittal Italia, the LTIF was
0.56x for 3Q 2020 as compared to 0.50x for 2Q 2020 and 0.82x for
the 3Q 2019.
Health and safety performance (inclusive of ArcelorMittal
Italia), based on own personnel and contractors lost time injury
frequency (LTIF) rate was 0.92x in the first nine months of 2020
("9M 2020") as compared to 1.24x in first nine months of 2019 ("9M
2019"). Health and safety performance (excluding the impact of
ArcelorMittal Italia) for 9M 2020 was 0.60x as compared to 0.71x
for 9M 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 |
3Q 20 |
2Q 20 |
3Q 19 |
9M 20 |
9M 19 |
Mining |
0.35 |
|
0.54 |
|
1.53 |
|
0.58 |
|
0.86 |
|
NAFTA |
0.32 |
|
0.46 |
|
0.54 |
|
0.50 |
|
0.53 |
Brazil |
0.36 |
|
0.15 |
|
0.21 |
|
0.33 |
|
0.37 |
Europe |
1.04 |
|
0.96 |
|
1.18 |
|
1.00 |
|
0.98 |
ACIS |
0.66 |
|
0.48 |
|
0.59 |
|
0.64 |
|
0.65 |
Total Steel |
0.60 |
|
0.50 |
|
0.71 |
|
0.62 |
|
0.70 |
Total (Steel and Mining) excluding ArcelorMittal
Italia |
0.56 |
|
0.50 |
|
0.82 |
|
0.60 |
|
0.71 |
ArcelorMittal Italia |
12.15 |
9.14 |
13.45 |
9.58 |
12.61 |
Total (Steel and Mining) including ArcelorMittal
Italia |
0.95 |
0.77 |
1.36 |
0.92 |
1.24 |
Key sustainable development highlights
for 3Q 2020:
During 3Q 2020, the Company highlighted:
- Its target to become a net zero carbon emissions Company by
2050, building on its 2019 commitment to become carbon neutral in
Europe by the same date;
- A new offer of green steel9 by way of a certification system
linked to CO2 savings achieved through investment in
decarbonization technologies. 30,000 tonnes will be available this
year, rising to 120,000 tonnes in 2021 and 600,000 tonnes by
2022;
- Completion of two environmental projects in Zenica, Bosnia
& Herzegovina, including the installation of a second
innovative hybrid filter in the sinter plant; and
- Its intention to set out further details in support of its 2050
net zero target in its second climate action report, which is
anticipated to be published before the end of 2020.
Analysis of results for 3Q 2020 versus
2Q 2020 and 3Q 2019Total steel shipments in 3Q 2020 were
17.5Mt, 17.5% higher as compared with 14.8Mt in 2Q 2020, as
economic activity is recovering across all regions following the
severe impacts of the COVID-19 pandemic on 2Q 2020, with all
segments experiencing quarter-on-quarter shipment growth (Europe
+20.1%, Brazil +17.8%, NAFTA +16.8% and ACIS +4.3%). Despite the
sequential improvement, steel demand remains well below pre-crisis
levels, with total steel shipments in 3Q 2020 13.5% lower as
compared with 20.2Mt in 3Q 2019 (Europe -15.6%, Brazil -13.7%,
NAFTA -13.6%, and ACIS -8.0%).
Sales in 3Q 2020 were $13.3 billion as compared to $11.0 billion
for 2Q 2020 (+20.9%) and $16.6 billion for 3Q 2019. This 20.9%
increase was primarily due to higher steel shipments, with a better
sales mix (higher automotive volumes share) largely offsetting
lower realized selling prices (due to lag effect), and increased
mining sales due both to higher market-priced iron ore shipments
(+7.5%) and higher seaborne iron ore reference prices (+26.2%).
Sales in 3Q 2020 were 20.2% lower as compared to 3Q 2019 primarily
due to the impacts of COVID-19 on demand for steel shipments
(shipments down -13.5%) and average steel selling prices (-8.4%)
offset in part by higher market-priced iron ore shipments (+16.8%)
and higher seaborne iron ore reference prices (+15.7%).
Depreciation for 3Q 2020 was stable at $739 million as compared
to $739 million for 2Q 2020 and lower as compared to $766 million
in 3Q 2019. FY 2020 depreciation is expected to be approximately
$3.0 billion (based on current exchange rates).
Net impairment gain3 in 3Q 2020 amounted to $556 million,
consisting of the partial reversal of impairment charges recorded
following the announced sale of ArcelorMittal USA ($660 million),
and an impairment charge of $104 million related to the permanent
closure of a blast furnace and steel plant in Krakow (Poland).
Impairment charges3 for 2Q 2020 and 3Q 2019 were nil.
Exceptional items for 3Q 2020 and 3Q 2019 were nil. Exceptional
items in 2Q 2020 consisted of $221 million of inventory related
charges in NAFTA.
Operating income for 3Q 2020 was $718 million as compared to an
operating loss of $253 million in 2Q 2020 and an operating income
of $297 million in 3Q 2019, impacted by the impairments and
exceptional items as discussed above. In addition, operating income
for 3Q 2020 compared to 2Q 2020 reflected higher steel volumes and
improved mix (although there was no improvement in steel spreads in
the quarter due to lag effect), while fixed cost per ton remained
broadly stable as temporary measures reversed with increased
activity levels.
Income from associates, joint ventures and other investments for
3Q 2020 was $100 million compared to a loss of $15 million for 2Q
2020 and an income of $25 million in 3Q 2019. Income increased in
3Q 2020 on account of improved performance at AMNS India7,
Baffinland and Calvert and dividend from Erdemir of $12
million.
Net interest expense in 3Q 2020 was lower at $106 million as
compared to $112 million in 2Q 2020 and $152 million in 3Q 2019.
The Company continues to expect full year 2020 net interest expense
to be approximately $0.5 billion.
Foreign exchange and other net financing losses in 3Q 2020 were
$150 million as compared to gains of $36 million in 2Q 2020 and
losses of $524 million in 3Q 2019. Foreign exchange gain in 3Q 2020
was $17 million, $123 million in 2Q 2020 and a loss of $112 million
in 3Q 2019. 3Q 2020 and 2Q 2020 include immaterial non-cash
mark-to-market gains/loss related to the mandatory convertible bond
call option as compared to loss of $243 million in 3Q 2019.
ArcelorMittal recorded an income tax expense of $784 million in
3Q 2020 as compared to $184 million for 2Q 2020 and $185 million
for 3Q 2019. The tax expense for 3Q 2020 includes $624 million of
deferred tax expense (derecognition of deferred tax assets) in
Luxembourg due to anticipated lower intra-group income from
ArcelorMittal USA (primarily lower branding, R&D fees and
interest income) following the announced sale of ArcelorMittal
USA.
ArcelorMittal recorded a net loss for 3Q 2020 of $261 million
(or $0.21 basic loss per common share), as compared to a net loss
for 2Q 2020 of $559 million (or $0.50 basic loss per common share),
and a net loss for 3Q 2019 of $539 million (or $0.53 basic loss per
common share).
Analysis of segment
operations
NAFTA
(USDm) unless otherwise
shown |
3Q 20 |
2Q 20 |
3Q 19 |
9M 20 |
9M 19 |
Sales |
3,329 |
|
2,768 |
|
4,395 |
|
10,401 |
|
14,535 |
|
Operating income / (loss) |
607 |
|
(327) |
|
(24) |
|
160 |
|
(347) |
|
Depreciation |
(126) |
|
(136) |
|
(147) |
|
(388) |
|
(418) |
|
Impairment items |
660 |
|
— |
|
— |
|
660 |
|
(600) |
|
Exceptional items |
— |
|
(221) |
|
— |
|
(462) |
|
— |
|
EBITDA |
73 |
|
30 |
|
123 |
|
350 |
|
671 |
|
Crude steel production (kt) |
4,432 |
|
3,698 |
|
5,658 |
|
13,633 |
|
16,636 |
|
Steel shipments (kt) |
4,435 |
|
3,797 |
|
5,135 |
|
13,768 |
|
15,892 |
|
Average steel selling price (US$/t) |
701 |
|
670 |
|
792 |
|
698 |
|
835 |
|
NAFTA segment crude steel production increased by 19.8% to 4.4Mt
in 3Q 2020, as compared to 3.7Mt in 2Q 2020 which was heavily
impacted by the lockdown measures in response to the COVID-19
pandemic. Following the gradual improvement in demand, particularly
automotive, ArcelorMittal restarted BF#4 at Indiana Harbour (US)
during the quarter and BF#D at Burns Harbour (US) in August
following repairs undertaken mid-July. Nevertheless, demand has not
yet recovered to pre-crisis levels and production in 3Q 2020 was
21.7% lower than the same period of 2019.
Steel shipments in 3Q 2020 increased by 16.8% to 4.4Mt, as
compared to 3.8Mt in 2Q 2020, due to improved demand particularly
from the automotive sector.
Sales in 3Q 2020 increased by 20.3% to $3.3 billion, as compared
to $2.8 billion in 2Q 2020, primarily due to the increase in steel
shipments and a 4.6% increase in average steel selling prices
(primarily on account of the improved sales mix).
3Q 2020 operating income includes a $660 million gain related to
the partial reversal of impairments recorded in ArcelorMittal USA
following the announced sale. Impairment charges for 2Q 2020 and 3Q
2019 were nil. Exceptional items for 2Q 2020 of $221 million
related to inventory charges.
Operating income in 3Q 2020 was $607 million as compared to a
loss of $327 million in 2Q 2020 and loss of $24 million in 3Q 2019.
Operating results for 3Q 2020 were impacted by the reversal of
impairments and for 2Q 2020 were impacted by exceptional items, as
noted above.
EBITDA in 3Q 2020 of $73 million was higher as compared to
EBITDA of $30 million in 2Q 2020, primarily due to higher steel
shipments (including higher activity related fixed costs) and
favorable mix, partially offset by a negative price cost effect
(lower realized selling prices and higher input costs).
EBITDA in 3Q 2020 of $73 million was lower as compared to $123
million in 3Q 2019 driven primarily by lower steel shipments
(-13.6%) and lower average steel selling prices (-11.6%), offset in
part by lower fixed costs.
Brazil
(USDm) unless otherwise
shown |
3Q 20 |
2Q 20 |
3Q 19 |
9M 20 |
9M 19 |
Sales |
1,603 |
|
1,192 |
|
1,929 |
|
4,387 |
|
6,211 |
|
Operating income |
197 |
|
117 |
|
196 |
|
464 |
|
669 |
|
Depreciation |
(55) |
|
(51) |
|
(62) |
|
(175) |
|
(211) |
|
EBITDA |
252 |
|
168 |
|
258 |
|
639 |
|
880 |
|
Crude steel production (kt) |
2,300 |
|
1,692 |
|
2,669 |
|
6,671 |
|
8,512 |
|
Steel shipments (kt) |
2,425 |
|
2,059 |
|
2,810 |
|
6,835 |
|
8,475 |
|
Average steel selling price (US$/t) |
625 |
|
550 |
|
676 |
|
608 |
|
695 |
|
Brazil segment crude steel production increased by 35.9% to
2.3Mt in 3Q 2020 as compared to 1.7Mt for 2Q 2020 with increases in
both flat and long products. Nevertheless, demand has not yet
recovered to pre-crisis levels and production in 3Q 2020 was 13.8%
lower as compared to 2.7Mt in 3Q 2019.
Given the improving market conditions and favorable cost
position, the Company restarted BF#2 at ArcelorMittal Tubarão
(Brazil) at the end of July 2020 (idled since June 2019). In
addition, as domestic demand has improved following COVID-19
pandemic impacts experienced during 2Q 2020, the Company has
recently restarted BF#3 at ArcelorMittal Tubarão (idled since April
2020).
Steel shipments in 3Q 2020 increased by 17.8% to 2.4Mt as
compared to 2.1Mt in 2Q 2020, primarily due to recovery in domestic
demand for both flat and long products after the height of the
COVID-19 pandemic impacts in 2Q 2020.
Sales in 3Q 2020 increased by 34.5% to $1.6 billion as compared
to $1.2 billion in 2Q 2020, with a 17.8% increase in steel
shipments and a 13.7% increase in average steel selling prices.
Operating income in 3Q 2020 of $197 million was higher as
compared to $117 million in 2Q 2020 and stable compared to $196
million in 3Q 2019.
EBITDA in 3Q 2020 increased by 49.9% to $252 million as compared
to $168 million in 2Q 2020, primarily due to higher steel shipments
(including higher activity related fixed costs), a favorable mix
impact (increased domestic sales) and positive price cost
effect.
EBITDA in 3Q 2020 was 2.4% lower as compared to $258 million in
3Q 2019 primarily due to lower steel shipment volumes (-13.7%)
offset in part by lower fixed costs including the benefit of
exchange rates.
Europe
(USDm) unless otherwise
shown |
3Q 20 |
2Q 20 |
3Q 19 |
9M 20 |
9M 19 |
Sales |
7,013 |
|
5,800 |
|
8,796 |
|
20,467 |
|
29,686 |
|
Operating loss |
(342) |
|
(229) |
|
(168) |
|
(997) |
|
(458) |
|
Depreciation |
(356) |
|
(355) |
|
(311) |
|
(1,058) |
|
(933) |
|
Impairment |
(104) |
|
— |
|
— |
|
(196) |
|
(497) |
|
Exceptional items |
— |
|
— |
|
— |
|
(191) |
|
— |
|
EBITDA |
118 |
|
126 |
|
143 |
|
448 |
|
972 |
|
Crude steel production (kt) |
7,908 |
|
7,074 |
|
10,432 |
|
24,894 |
|
34,883 |
|
Steel shipments (kt) |
8,187 |
|
6,817 |
|
9,698 |
|
24,304 |
|
33,062 |
|
Average steel selling price (US$/t) |
651 |
|
633 |
|
686 |
|
641 |
|
707 |
|
Europe segment crude steel production increased by 11.8% to
7.9Mt in 3Q 2020 as compared to 7.1Mt in 2Q 2020 which was heavily
impacted by the lockdown measures in response to the COVID-19
pandemic. Nevertheless, demand and activity levels have since
gradually improved, as lockdowns eased through 2Q 2020 and into 3Q
2020, particularly with automotive and manufacturing restarts. As a
result, the Company resumed some steel-making capacity in France,
Spain and Germany, with some of the restarts required to ensure
continuity of supply to customers during the planned major reline
of a blast furnace at Gent, Belgium that began late August 2020.
Nevertheless, demand has not yet recovered to pre-crisis levels and
production in 3Q 2020 was 24.2% lower as compared to 10.4Mt in 3Q
2019.
Steel shipments in 3Q 2020 improved by 20.1% to 8.2Mt as
compared to 6.8Mt in 2Q 2020 primarily driven by higher flat steel
shipments (+29.6%). Steel shipments were 15.6% lower in 3Q 2020 as
compared to 9.7Mt in 3Q 2019 (in both flat and long products)
primarily due to the impacts of the COVID-19 pandemic.
Sales in 3Q 2020 were $7.0 billion, 20.9% higher as compared to
$5.8 billion in 2Q 2020, primarily due to higher shipment volumes
as discussed above and an improved sales mix (higher flat products
shipments, in particular automotive sales) and higher selling
prices in US dollars.
Impairment charges for 3Q 2020 were $104 million related to the
closure of the blast furnace and the steel plant in Krakow
(Poland). Impairment charges for 2Q 2020 and 3Q 2019 were nil.
Operating loss in 3Q 2020 was $342 million as compared to a loss
of $229 million for 2Q 2020 and $168 million in 3Q 2019.
EBITDA in 3Q 2020 of $118 million was 6.5% lower as compared to
$126 million in 2Q 2020, primarily due to a negative price-cost
effect (3% decline in selling prices denominated in euros and
higher input prices) offset in part by higher volumes (including
higher activity related fixed costs) and a favorable mix.
EBITDA in 3Q 2020 decreased by 17.5% as compared to $143 million
in 3Q 2019 primarily due to the impact of lower steel shipments and
a negative price-cost effect which was partially offset by lower
fixed costs.
ACIS
(USDm) unless otherwise
shown |
3Q 20 |
2Q 20 |
3Q 19 |
9M 20 |
9M 19 |
Sales |
1,400 |
|
1,184 |
|
1,654 |
|
4,030 |
|
5,205 |
|
Operating income / (loss) |
37 |
|
(70) |
|
35 |
|
(93) |
|
213 |
|
Depreciation |
(82) |
|
(75) |
|
(93) |
|
(243) |
|
(259) |
|
Exceptional items |
— |
|
— |
|
— |
|
(21) |
|
— |
|
EBITDA |
119 |
|
5 |
|
128 |
|
171 |
|
472 |
|
Crude steel production (kt) |
2,544 |
|
1,956 |
|
3,450 |
|
7,498 |
|
10,025 |
|
Steel shipments (kt) |
2,499 |
|
2,395 |
|
2,718 |
|
7,508 |
|
8,562 |
|
Average steel selling price (US$/t) |
465 |
|
408 |
|
532 |
|
449 |
|
536 |
|
ACIS segment crude steel production in 3Q 2020 increased by
30.0% to 2.5Mt as compared to 2.0Mt in 2Q 2020 primarily due to a
recovery in demand following COVID-19 pandemic effects experienced
during 2Q 2020 in Kazakhstan and South Africa8, offset in part by
planned maintenance in Ukraine. Nevertheless, demand has not yet
recovered to pre-crisis levels and production in 3Q 2020 was 26.2%
lower as compared to 3.5Mt in 3Q 2019.
Steel shipments in 3Q 2020 increased by 4.3% to 2.5Mt as
compared to 2.4Mt as at 2Q 2020, mainly due to partial recovery in
demand in South Africa following the stringent lockdown measures
introduced in 2Q 2020 due to COVID-19.
Sales in 3Q 2020 increased by 18.3% to $1.4 billion as compared
to $1.2 billion in 2Q 2020, primarily due to higher steel shipments
(+4.3%) and higher average steel selling prices (+13.9%).
Operating income in 3Q 2020 was $37 million as compared to an
operating loss of $70 million in 2Q 2020 and an operating income of
$35 million in 3Q 2019.
EBITDA was $119 million in 3Q 2020 as compared to $5 million in
2Q 2020, primarily due to positive price cost-effects.
EBITDA in 3Q 2020 was lower as compared to $128 million in 3Q
2019, primarily due to lower steel shipments and negative
price-cost effect offset in part by lower fixed costs (including
favorable exchange rates).
Mining
(USDm) unless otherwise
shown |
3Q 20 |
2Q 20 |
3Q 19 |
9M 20 |
9M 19 |
Sales |
1,200 |
|
1,064 |
|
1,182 |
|
3,254 |
|
3,732 |
|
Operating income |
382 |
|
282 |
|
260 |
|
832 |
|
1,030 |
|
Depreciation |
(114) |
|
(109) |
|
(112) |
|
(352) |
|
(332) |
|
EBITDA |
496 |
|
391 |
|
372 |
|
1,184 |
|
1,362 |
|
|
|
|
|
|
|
Own iron ore production (Mt) |
14.8 |
|
13.5 |
|
13.6 |
|
42.7 |
|
42.3 |
|
Iron ore shipped externally and internally at market price (a)
(Mt) |
9.8 |
|
9.2 |
|
8.4 |
|
27.6 |
|
27.5 |
|
Iron ore shipment - cost plus basis (Mt) |
5.0 |
|
4.8 |
|
6.2 |
|
14.6 |
|
16.4 |
|
Own coal production (Mt) |
1.2 |
|
1.4 |
|
1.4 |
|
3.9 |
|
4.1 |
|
Coal shipped externally and internally at market price (a)
(Mt) |
0.6 |
|
0.7 |
|
0.7 |
|
2.1 |
|
2.1 |
|
Coal shipment - cost plus basis (Mt) |
0.6 |
|
0.6 |
|
0.8 |
|
1.8 |
|
2.2 |
|
(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 3Q 2020 increased by 8.9% to 14.8Mt
as compared to 13.5Mt in 2Q 2020 primarily due to higher production
at ArcelorMittal Mines Canada (AMMC) (recovery from COVID-19
impacts experienced during April 2020 per operating restrictions
imposed at the mine per government), and at Hibbing following its
restart in July 2020 (previously idled in early May 2020 due to
lower internal requirements).
Own iron ore production in 3Q 2020 increased by 8.8% as compared
to 13.6Mt in 3Q 2019 primarily due to higher production in AMMC,
Ukraine and Liberia offset by lower production in Hibbing as
discussed above.
Market-priced iron ore shipments in 3Q 2020 increased by 7.5% to
9.8Mt as compared to 9.2Mt in 2Q 2020, primarily driven by higher
shipments in AMMC. Market-priced iron ore shipments in 3Q 2020 were
16.8% higher as compared to 3Q 2019 reflecting higher production
levels in particular at AMMC and Ukraine. Following the better than
expected 3Q 2020, the Company has revised its previous guidance and
now expects FY 2020 market-priced iron ore shipments to be broadly
stable as compared to 2019 (versus ~5% decline).
Own coal production in 3Q 2020 of 1.2Mt decreased by 11.1% as
compared to 1.4Mt in 2Q 2020 primarily due to lower production at
both Temirtau (Kazakhstan) and Princeton (US). Own coal production
in 3Q 2020 decreased by 17.1% to 1.2Mt as compared to 1.4Mt in 3Q
2019 primarily due to lower production at both Temirtau
(Kazakhstan) and Princeton (US).
Market-priced coal shipments in 3Q 2020 declined by 11.1% to
0.6Mt as compared to 0.7Mt in 2Q 2020 with lower production as
explained above.
Operating income in 3Q 2020 increased to $382 million as
compared to $282 million in 2Q 2020 and $260 million in 3Q
2019.
EBITDA in 3Q 2020 increased by 26.6% to $496 million as compared
to $391 million in 2Q 2020, reflecting the positive impact of
higher market-priced iron ore shipments (+7.5%) and seaborne market
prices (+26.2%), offset in part by higher freight costs and lower
quality premia. EBITDA in 3Q 2020 was 33.3% higher as compared to
$372 million in 3Q 2019, primarily due to higher market-priced iron
ore shipments (+16.8%) and higher seaborne iron ore reference
prices (+15.7%), offset in part by lower quality premia and lower
coking coal reference prices (-30.2%).
Liquidity and Capital
ResourcesFor 3Q 2020 net cash provided by operating
activities was $1,770 million as compared to $302 million in 2Q
2020 and $328 million in 3Q 2019. Net cash provided by operating
activities in 3Q 2020 includes a working capital release of $1,072
million (primarily due to reduced inventories), as compared to a
working capital investment of $392 million in 2Q 2020 and a working
capital investment of $203 million in 3Q 2019.
Net cash used in investing activities during 3Q 2020 was $486
million as compared to $364 million during 2Q 2020 and $816 million
in 3Q 2019. Capex of $520 million in 3Q 2020 compares to $401
million in 2Q 2020 and $941 million in 3Q 2019. As described
previously, the Company responded to the COVID-19 impact with
actions taken to reduce production and adapt its costs to the
operating environment. All non-essential capex was suspended, while
the Mexico hot strip mill project, the agreed Italian projects and
certain projects to reduce CO2 emissions continue. Maintenance
capex is still expected to match reduced operating rates and the FY
2020 capex guidance of approximately $2.4 billion is
maintained.
Net cash provided by other investing activities in 3Q 2020 of
$34 million as compared to $37 million in 2Q 2020. Net cash
provided by other investing activities in 3Q 2019 of $125 million
primarily included net proceeds from the sale of the remaining 2.6%
stake in Gerdau ($116 million cash received following the sale of
30 million shares) and the final installment of disposal proceeds
from ArcelorMittal USA's 21% stake in the Empire Iron Mine
Partnership ($44 million), partially offset by the quarterly lease
payment for ArcelorMittal Italia.
Net cash used in financing activities in 3Q 2020 was $401
million as compared to net cash provided by financing activities in
2Q 2020 of $1.5 billion and $659 million in 3Q 2019. Net cash used
in financing activities in 3Q 2020 primarily includes bond
repayments (remaining $318 million balance on EUR 600 million
2.875% and the $237 million balance of CHF 225 million 2.50% that
each matured in July 2020). Net cash provided by financing
activities in 2Q 2020 included 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 provided by financing activities in 3Q 2019
included a net inflow of $804 million from bond issuances and early
redemptions.
During 3Q 2020, the Company paid dividends of $55 million to
minority shareholders of ArcelorMittal Mines Canada4 (AMMC) and
Bekaert (Brazil), as compared to $7 million in 2Q 2020. During 3Q
2019, the Company paid dividends of $61 million mainly to minority
shareholders in AMMC.
On September 28, 2020, in connection with the announced sale of
100% of the shares of ArcelorMittal USA, ArcelorMittal announced
its intention to repurchase, between September 28, 2020 and March
31, 2021, shares for an aggregate maximum amount of $500 million.
As of September 30, 2020, the Company had paid $13 million towards
this repurchase and subsequently the share buyback program has been
completed as of October 30, 2020.
Outflows from lease payments and other financing activities
(net) were $63 million for 3Q 2020, $59 million in 2Q 2020 and $84
million in 3Q 2019.
As of September 30, 2020, the Company’s cash and cash
equivalents amounted to $6.6 billion as compared to $5.7 billion as
of June 30, 2020 and $5.0 billion as of December 31, 2019. Gross
debt marginally increased to $13.7 billion as of September 30,
2020, as compared to $13.5 billion as of June 30, 2020 and was
lower as compared to $14.3 billion as of December 31, 2019. As of
September 30, 2020, net debt decreased to $7.0 billion as compared
to $7.8 billion as of June 30, 2020 driven by working capital
release offset in part by foreign exchange loss on debt (following
4.6% depreciation of USD versus EUR).
As of September 30, 2020, the Company had liquidity of $12.2
billion, consisting of cash and cash equivalents of $6.7 billion
(includes $0.1 billion of cash and cash equivalent held as part of
assets held for sale) 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 defined in the
facilities). As of September 30, 2020, the average debt maturity
was 4.8 years.
Key recent developments
- On November 2, 2020, ArcelorMittal
announced it has completed the share buyback program announced on
September 28, 2020. By market close on October 30, 2020,
ArcelorMittal had repurchased 35,636,253 million shares for a total
value of approximately €424,927,793 (equivalent to $499,999,991) at
an approximate average price per share of €11.92. All details are
available on the Company’s website at:
https://corporate.arcelormittal.com/investors/equity-investors/share-buyback-program.
- In October 2020, pursuant to cash
tender offers, ArcelorMittal repurchased :
- €263,583,000 of its EUR denominated
3.125% Notes due 2022 for a total aggregate purchase price
(including accrued interest) of €279,260,967.51. Following this
purchase, €486,417,000 principal amount remained outstanding.
- €133,121,000 of its EUR denominated
0.95% Notes due 2023 for a total aggregate purchase price
(including accrued interest) of €133,794,606.71. Following this
purchase, €366,879,000 principal amount remained outstanding.
- $243,107,000 [1] of its U.S. dollar
denominated 6.125% notes due 2025 for a total aggregate purchase
price (including accrued interest) of $289,977,692. Following this
purchase, $256,893,000 principal amount remained outstanding. ([1]
On October 16, 2020, following final expiration of the offer,
ArcelorMittal repurchased additional $1,033,000 aggregate principal
amount of 2025 Notes).
- On October 8, 2020, ArcelorMittal
Poland announced its intention to permanently close its primary
steelmaking operations at its unit in Kraków and concentrate the
production of hot metal in our two blast furnaces in Dabrowa
Gornicza, to improve cost competitiveness. The shutdown process in
the blast furnace and the steel shop began in October 2020. The
blast furnace and steel shop in Kraków were temporarily idled in
November 2019, as a result of the market downturn, high energy
costs and large volumes of steel imports from outside the EU. The
coke plant in Kraków will continue to operate as well as the
downstream operations (two rolling mills, the hot dip galvanizing
line and the new organic coating line). The slabs for the rolling
mills in Kraków will come mainly from the steel shop in Dabrowa
Gornicza.
- On September 30, 2020, ArcelorMittal
announced a group-wide target of being carbon neutral by 2050,
building on the commitment made in 2019 by its European business to
reduce emissions by 30% by 2030, and be carbon neutral by 2050. The
transition to net zero for steel is a significant challenge that
will require not only extensive technology innovation, but new
forms of policy and financial support. ArcelorMittal has identified
two low-emissions steelmaking routes, both of which have the
potential to lead to carbon-neutral steelmaking:
- The Hydrogen-DRI route, which
essentially uses hydrogen as a reducing agent instead of fossil
fuels. A demonstration plant in Hamburg, where ArcelorMittal owns
Europe’s only operational DRI-EAF plant, is currently planned with
a targeted start-up in 2023-2025 (depending on funding).
- The Smart Carbon route is centered
around modifying the blast furnace route to create carbon neutral
steelmaking through a combination of circular carbon - in the form
of sustainable biomass or carbon containing waste streams - and
carbon capture and use (CCU) and storage (CCS). It will also use
hydrogen gas injection. ArcelorMittal is well advanced on
constructing several commercial-scale projects to test and prove a
range of Smart Carbon technologies. Start-up target for key
projects is targeted in 2022.
While both routes have the potential to deliver carbon-neutral
steel by 2050, we believe that Smart Carbon can deliver results
sooner, and make a meaningful contribution to CO2 emissions
reduction this decade, while industrial scale production from the
Hydrogen-DRI route is unlikely to be significant before 2030 due to
the current high costs.
Given the new low emissions technologies required much more cost
than the technology used in steel-making today, extensive new
policy will be required to make the transition to lower emission
and ultimately net zero steel-making possible.
The Company has also previously outlined the policy framework
environment it believes is required for carbon-neutral steelmaking
to become a reality, which includes: a global level playing field
which avoids the risk of carbon leakage through mechanisms such as
green border adjustments; access to abundant and affordable clean
energy policies which support the development of the necessary
clean energy infrastructure; access to finance for low-emissions
steelmaking, including innovation funding as well as fair criteria
for new forms of sustainable finance; the introduction of
instruments such as contracts for difference to cover the
significant additional cost of low-carbon technologies until they
become commercially viable; and policies which accelerate the
transition to a circular economy.
- On September 28, 2020, ArcelorMittal announced it had entered
into a definitive agreement with Cleveland-Cliffs Inc. ("Cleveland
Cliffs") pursuant to which Cleveland-Cliffs will acquire 100% of
the shares of ArcelorMittal USA for a combination of cash and stock
with an aggregate agreed equity value consideration of $1.4 billion
upon closing of the Transaction.
Approximately one third of the
consideration is in upfront cash ($505 million). The remaining two
thirds of the consideration is in the form of equity:
- stock component of ~78 million shares of Cleveland-Cliffs
common stock with value of $500 million (Number of shares
determined by agreed value of $500 million based on volume weighted
average price of Cleveland-Cliffs common shares from August 19,
2020 to September 25, 2020 of $6.39 per share); and
- non-voting preferred stock redeemable for ~58 million shares of
Cleveland-Cliffs common stock with an aggregate value of $373
million or an equivalent amount in cash (Number of shares
determined by agreed value of $373 million based on volume weighted
average price of Cleveland-Cliffs common shares from August 19,
2020 to September 25, 2020 of $6.39 per share).
In addition, Cleveland-Cliffs will assume the liabilities of
ArcelorMittal USA, including net liabilities of approximately $0.5
billion and pensions and other post-employment benefit liabilities
(“OPEB”)10.
The transaction has received the approval of both ArcelorMittal
and Cleveland-Cliffs Boards of Directors and is expected to close
within the fourth quarter of 2020, subject to receipt of regulatory
approvals and satisfaction of other customary closing
conditions.
- On September 28, 2020, ArcelorMittal announced a share buyback
program, in connection with the announced sale of 100% of the
shares of ArcelorMittal USA. The shares acquired under the program
are intended i) to meet ArcelorMittal’s obligations under debt
obligations exchangeable into equity securities, and/or ii) to
reduce its share capital. ArcelorMittal intends to repurchase,
between September 28, 2020 and March 31, 2021, shares for an
aggregate maximum amount of $500 million.
- On August 12, 2020, ArcelorMittal announced its intention to
build an Electric Arc Furnace (EAF) steel making facility at AMNS
Calvert. Once completed the planned facility will be capable of
producing 1.5Mt of steel slabs for the Hot Strip Mill and producing
a broad spectrum of steel grades required for Calvert’s end user
markets. Construction is expected to take 24 months and the new
facility is anticipated to create 300 additional jobs in the
community. Whilst the finished steel capacity at Calvert remains
unchanged at 5.2Mt, the EAF will reduce the requirement to maintain
slab inventory (significantly reduced working capital needs) and
optimize slab supply and satisfying the “melt and poured”
procurement requirements under the United States-Mexico-Canada
Agreement (USMCA).
Outlook and guidance
The easing of lockdown measures has seen activity levels
improving since 2Q 2020; nevertheless, demand remains below normal
and the pace and profile of recovery is uncertain. The Company has
begun to restart hot idled capacity as market demand improves on a
region by region basis. Nevertheless, as concerns around second
wave impacts persist, the Company maintains its flexibility to
quickly adapt production as conditions evolve.
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. However, 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 6-7 months has,
through necessity, forced the business to operate differently in
particular 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. The Company
has started to take some actions during 3Q 2020, including the
announced permanent closure of the blast furnace in Kraków, Poland
and will provide further details of the program with full year 2020
results in February 2021.
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 $3.7
billion in 2020 versus the $3.5 billion previous guidance. This
includes cash taxes, pensions and other cash costs of $0.8 billion
(versus previous guidance of $0.6 billion); largely due to
increased cash tax payments. FY 2020 capex and net interest costs
are expected to remain at $2.4 billion and $0.5 billion,
respectively.
The Company released $0.6 billion of working capital in the 9M
2020 and revised its full year working capital release guidance to
~$0.6 to $1.0 billion (from previous target of $1 billion working
capital efficiencies).
The Company has now reached its $7bn net debt target, and
deleveraging has been completed. The Company's capital allocation
priority will now shift to returning cash to shareholders. The
process has begun with a $500 million share buyback program that
was initiated following the announced sale of ArcelorMittal USA
(and the program subsequently completed as of October 30, 2020).
Following consultation with shareholders, the Board expects to
recommend an updated distribution policy alongside year end 2020
results.
ArcelorMittal Condensed Consolidated Statement of
Financial Position1
In millions of U.S. dollars |
Sept 30,2020 |
Jun 30,2020 |
Dec 31,2019 |
ASSETS |
|
|
|
Cash and cash equivalents |
6,617 |
|
5,702 |
|
4,995 |
|
Trade accounts receivable and other |
3,133 |
|
3,048 |
|
3,569 |
|
Inventories |
12,327 |
|
14,269 |
|
17,296 |
|
Prepaid expenses and other current assets |
2,094 |
|
2,199 |
|
2,756 |
|
Asset held for sale6 |
6,069 |
|
— |
|
— |
|
Total Current Assets |
30,240 |
|
25,218 |
|
28,616 |
|
|
|
|
|
Goodwill and intangible assets |
4,195 |
|
4,944 |
|
5,432 |
|
Property, plant and equipment |
31,326 |
|
33,766 |
|
36,231 |
|
Investments in associates and joint ventures |
6,488 |
|
6,321 |
|
6,529 |
|
Deferred tax assets |
8,052 |
|
8,674 |
|
8,680 |
|
Other assets |
2,224 |
|
2,378 |
|
2,420 |
|
Total Assets |
82,525 |
|
81,301 |
|
87,908 |
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
Short-term debt and current portion of long-term debt |
3,776 |
|
3,134 |
|
2,869 |
|
Trade accounts payable and other |
9,389 |
|
10,019 |
|
12,614 |
|
Accrued expenses and other current liabilities |
6,036 |
|
6,179 |
|
5,804 |
|
Liabilities held for sale6 |
5,642 |
|
— |
|
— |
|
Total Current Liabilities |
24,843 |
|
19,332 |
|
21,287 |
|
|
|
|
|
Long-term debt, net of current portion |
9,608 |
|
10,414 |
|
11,471 |
|
Deferred tax liabilities |
1,928 |
|
2,039 |
|
2,331 |
|
Other long-term liabilities |
8,510 |
|
11,918 |
|
12,336 |
|
Total Liabilities |
44,889 |
|
43,703 |
|
47,425 |
|
|
|
|
|
Equity attributable to the equity holders of the parent |
35,838 |
|
35,774 |
|
38,521 |
|
Non-controlling interests |
1,798 |
|
1,824 |
|
1,962 |
|
Total Equity |
37,636 |
|
37,598 |
|
40,483 |
|
Total Liabilities and Shareholders’ Equity |
82,525 |
|
81,301 |
|
87,908 |
|
ArcelorMittal Condensed Consolidated Statement of
Operations1
|
Three months ended |
Nine months ended |
In millions of U.S. dollars unless otherwise
shown |
Sept 30, 2020 |
Jun 30, 2020 |
Sept 30, 2019 |
Sept 30, 2020 |
Sept 30, 2019 |
Sales |
13,266 |
|
10,976 |
|
16,634 |
|
39,086 |
|
55,101 |
|
Depreciation (B) |
(739) |
|
(739) |
|
(766) |
|
(2,249) |
|
(2,265) |
|
Impairment items3 (B) |
556 |
|
— |
|
— |
|
464 |
|
(1,097) |
|
Exceptional items3 (B) |
— |
|
(221) |
|
— |
|
(678) |
|
— |
|
Operating income / (loss) (A) |
718 |
|
(253) |
|
297 |
|
112 |
|
908 |
|
Operating margin % |
5.4 |
% |
(2.3) |
% |
1.8 |
% |
0.3 |
% |
1.6 |
% |
|
|
|
|
|
|
Income / (loss) from associates, joint ventures and other
investments |
100 |
|
(15) |
|
25 |
|
227 |
|
327 |
|
Net interest expense |
(106) |
|
(112) |
|
(152) |
|
(333) |
|
(467) |
|
Foreign exchange and other net financing (loss) / gain |
(150) |
|
36 |
|
(524) |
|
(565) |
|
(928) |
|
Income / (loss) before taxes and non-controlling
interests |
562 |
|
(344) |
|
(354) |
|
(559) |
|
(160) |
|
Current tax expense |
(204) |
|
(100) |
|
(121) |
|
(466) |
|
(526) |
|
Deferred tax (expense) / benefit |
(580) |
|
(84) |
|
(64) |
|
(842) |
|
192 |
|
Income tax expense |
(784) |
|
(184) |
|
(185) |
|
(1,308) |
|
(334) |
|
Loss including non-controlling interests |
(222) |
|
(528) |
|
(539) |
|
(1,867) |
|
(494) |
|
Non-controlling interests loss |
(39) |
|
(31) |
|
— |
|
(73) |
|
(78) |
|
Net loss attributable to equity holders of the
parent |
(261) |
|
(559) |
|
(539) |
|
(1,940) |
|
(572) |
|
|
|
|
|
|
|
Basic loss per common share ($) |
(0.21) |
|
(0.50) |
|
(0.53) |
|
(1.73) |
|
(0.56) |
|
Diluted loss per common share ($) |
(0.21) |
|
(0.50) |
|
(0.53) |
|
(1.73) |
|
(0.56) |
|
|
|
|
|
|
|
Weighted average common shares outstanding (in millions) |
1,228 |
|
1,119 |
|
1,012 |
|
1,120 |
|
1,013 |
|
Diluted weighted average common shares outstanding (in
millions) |
1,228 |
|
1,119 |
|
1,012 |
|
1,120 |
|
1,013 |
|
|
|
|
|
|
|
OTHER INFORMATION |
|
|
|
|
|
EBITDA (C = A-B) |
901 |
|
707 |
|
1,063 |
|
2,575 |
|
4,270 |
|
EBITDA Margin % |
6.8 |
% |
6.4 |
% |
6.4 |
% |
6.6 |
% |
7.7 |
% |
|
|
|
|
|
|
Own iron ore production (Mt) |
14.8 |
|
13.5 |
|
13.6 |
|
42.7 |
|
42.3 |
|
Crude steel production (Mt) |
17.2 |
|
14.4 |
|
22.2 |
|
52.7 |
|
70.1 |
|
Steel shipments (Mt) |
17.5 |
|
14.8 |
|
20.2 |
|
51.8 |
|
64.8 |
|
ArcelorMittal Condensed Consolidated Statement of Cash
flows1
|
Three months ended |
Nine months ended |
In millions of U.S. dollars |
Sept 30, 2020 |
Jun 30, 2020 |
Sept 30, 2019 |
Sept 30, 2020 |
Sept 30, 2019 |
Operating activities: |
|
|
|
|
|
Loss attributable to equity holders of the parent |
(261) |
|
(559) |
|
(539) |
|
(1,940) |
|
(572) |
|
Adjustments to reconcile net loss to net cash provided by
operations: |
|
|
|
|
|
Non-controlling interests loss |
39 |
|
31 |
|
— |
|
73 |
|
78 |
|
Depreciation and impairment items |
183 |
|
739 |
|
766 |
|
1,785 |
|
3,362 |
|
Exceptional items3 |
— |
|
221 |
|
— |
|
678 |
|
— |
|
(Income) / loss from associates, joint ventures and other
investments |
(100) |
|
15 |
|
(25) |
|
(227) |
|
(327) |
|
Deferred tax expense / (benefit) |
580 |
|
84 |
|
64 |
|
842 |
|
(192) |
|
Change in working capital |
1,072 |
|
(392) |
|
(203) |
|
571 |
|
(403) |
|
Other operating activities (net) |
257 |
|
163 |
|
265 |
|
884 |
|
1,139 |
|
Net cash provided by operating activities (A) |
1,770 |
|
302 |
|
328 |
|
2,666 |
|
3,085 |
|
Investing activities: |
|
|
|
|
|
Purchase of property, plant and equipment and intangibles (B) |
(520) |
|
(401) |
|
(941) |
|
(1,771) |
|
(2,757) |
|
Other investing activities (net) |
34 |
|
37 |
|
125 |
|
166 |
|
684 |
|
Net cash used in investing activities |
(486) |
|
(364) |
|
(816) |
|
(1,605) |
|
(2,073) |
|
Financing activities: |
|
|
|
|
|
Net (payments) / proceeds relating to payable to banks and
long-term debt |
(270) |
|
(395) |
|
804 |
|
(889) |
|
1,136 |
|
Dividends paid |
(55) |
|
(7) |
|
(61) |
|
(165) |
|
(311) |
|
Share buyback |
(13) |
|
— |
|
— |
|
(13) |
|
(90) |
|
Common share offering |
— |
|
740 |
|
— |
|
740 |
|
— |
|
Proceeds from Mandatorily Convertible Notes |
— |
|
1,237 |
|
— |
|
1,237 |
|
— |
|
Lease payments and other financing activities (net) |
(63) |
|
(59) |
|
(84) |
|
(181) |
|
(240) |
|
Net cash (used in) / provided by financing
activities |
(401) |
|
1,516 |
|
659 |
|
729 |
|
495 |
|
Net increase in cash and cash equivalents |
883 |
|
1,454 |
|
171 |
|
1,790 |
|
1,507 |
|
Cash and cash equivalents transferred (to) / from assets held for
sale |
(70) |
|
— |
|
— |
|
(70) |
|
10 |
|
Effect of exchange rate changes on cash |
73 |
|
(13) |
|
(155) |
|
(71) |
|
(153) |
|
Change in cash and cash equivalents |
886 |
|
1,441 |
|
16 |
|
1,649 |
|
1,364 |
|
|
|
|
|
|
|
Free cash flow (C=A+B) |
1,250 |
|
(99) |
|
(613) |
|
895 |
|
328 |
|
Appendix 1: Product shipments
by
region(1)
(000'kt) |
3Q 20 |
2Q 20 |
3Q 19 |
9M 20 |
9M 19 |
Flat |
3,779 |
|
3,328 |
|
4,454 |
|
11,960 |
|
13,936 |
|
Long |
746 |
|
485 |
|
847 |
|
2,077 |
|
2,441 |
|
NAFTA |
4,435 |
|
3,797 |
|
5,135 |
|
13,768 |
|
15,892 |
|
Flat |
1,047 |
|
1,074 |
|
1,513 |
|
3,398 |
|
4,775 |
|
Long |
1,393 |
|
994 |
|
1,312 |
|
3,472 |
|
3,742 |
|
Brazil |
2,425 |
|
2,059 |
|
2,810 |
|
6,835 |
|
8,475 |
|
Flat |
6,025 |
|
4,649 |
|
7,225 |
|
17,697 |
|
24,696 |
|
Long |
2,080 |
|
2,054 |
|
2,333 |
|
6,304 |
|
8,037 |
|
Europe |
8,187 |
|
6,817 |
|
9,698 |
|
24,304 |
|
33,062 |
|
CIS |
1,914 |
|
2,032 |
|
1,657 |
|
5,773 |
|
5,338 |
|
Africa |
585 |
|
361 |
|
1,060 |
|
1,732 |
|
3,222 |
|
ACIS |
2,499 |
|
2,395 |
|
2,718 |
|
7,508 |
|
8,562 |
|
Note: “Others and eliminations” are not presented in the
table
Appendix 2a: Capital
expenditures(1)
(USDm) |
3Q 20 |
2Q 20 |
3Q 19 |
9M 20 |
9M 19 |
NAFTA |
81 |
|
107 |
|
210 |
|
393 |
|
536 |
|
Brazil |
48 |
|
29 |
|
68 |
|
144 |
|
232 |
|
Europe |
222 |
|
168 |
|
390 |
|
713 |
|
1,080 |
|
ACIS |
68 |
|
46 |
|
153 |
|
236 |
|
405 |
|
Mining |
92 |
|
46 |
|
107 |
|
259 |
|
347 |
|
Total |
520 |
|
401 |
|
941 |
|
1,771 |
|
2,757 |
|
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 the past
year
Segment |
Site / unit |
Project |
Capacity / details |
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 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 |
Key date / forecast 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) |
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 |
4Q 2023(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 Liberia has been operating a 5Mt direct
shipping ore (DSO) since 2011 (Phase 1). In 2013, the Company had
started construction of a Phase 2 project that envisaged the
construction of 15 million tonnes of concentrate sinter fines
capacity and associated infrastructure; this project was then
suspended due to the onset of Ebola in West Africa and the
subsequent force-majeure declaration by the onsite contracting
companies. ArcelorMittal Liberia has now completed the revised
detailed feasibility study (which was updated in 2019 to apply best
available technology and replace wet with dry stack tailings
treatment) for the modular build of a 15 million tonne concentrator
(Phase 2), with aligned mine, concentrator, rail and port capacity.
The plan is now to recommence the project in 2021, with first
concentrate expected in 4Q 2023. The capex required to conclude the
project is approximately $0.8 billion as the project is effectively
a brownfield opportunity given that 85% of the procurement has
already been done (with the equipment on site) and 60% of the civil
construction complete.
Appendix 3: Debt repayment schedule as
of September 30, 2020
(USD billion) |
2020 |
2021 |
2022 |
2023 |
2024 |
>2024 |
Total |
Bonds |
0.7 |
0.3 |
0.6 |
1.3 |
1.9 |
3.5 |
8.3 |
Commercial paper |
1.2 |
0.1 |
— |
|
— |
|
— |
|
— |
|
1.3 |
Other loans |
0.8 |
0.9 |
0.5 |
1.0 |
0.2 |
0.7 |
4.1 |
Total gross debt |
2.7 |
1.3 |
1.1 |
2.3 |
2.1 |
4.2 |
13.7 |
Appendix 4: Reconciliation of gross debt
to net debt
(USD million) |
Sept 30, 2020 |
Jun 30, 2020 |
Dec 31, 2019 |
Sep 30, 2019 |
Gross debt (excluding that held as part of the liabilities
held for sale) |
13,384 |
|
13,548 |
|
14,340 |
|
14,305 |
|
Gross debt held as part of the liabilities held for sale |
292 |
|
— |
|
— |
|
— |
|
Gross debt |
13,676 |
|
13,548 |
|
14,340 |
|
14,305 |
|
Less: Cash and cash equivalents |
(6,617) |
|
(5,702) |
|
(4,995) |
|
(3,647) |
|
Less: Cash and cash equivalents held as part of the assets held for
sale |
(70) |
|
— |
|
— |
|
— |
|
Net debt (including that held as part of assets and the
liabilities held for sale) |
6,989 |
|
7,846 |
|
9,345 |
|
10,658 |
|
|
|
|
|
|
Net debt / LTM EBITDA |
2.0 |
|
2.1 |
|
1.8 |
|
1.7 |
|
Appendix 5: Adjusted net (loss) /
income
(USDm) |
3Q 20 |
2Q 20 |
3Q 19 |
9M 20 |
9M 19 |
Net loss |
(261) |
|
(559) |
|
(539) |
|
(1,940) |
|
(572) |
|
Impairment items |
556 |
|
— |
|
— |
|
464 |
|
(1,097) |
|
Exceptional items |
— |
|
(221) |
|
— |
|
(678) |
|
— |
|
Derecognition of deferred tax assets on disposal of ArcelorMittal
USA |
(624) |
|
— |
|
— |
|
(624) |
|
— |
|
Adjusted net (loss) / income |
(193) |
|
(338) |
|
(539) |
|
(1,102) |
|
525 |
|
Appendix 6: 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 items,
exceptional items and derecognition of deferred tax assets on
disposal of ArcelorMittal USA.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 items 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
(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 (including that held as part of the liabilities
held for sale).Impairment items: refers to
impairment charges net of reversals. 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 tonnes.Market-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 (including
those held as part of assets and liabilities held for
sale).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
China.Shipments: 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.
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 also 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. The Company’s guidance as to its working capital
release (or the change in working capital included in net cash
provided by operating activities) for the full year 2020 is based
on the same accounting policies as those applied in the Company’s
financial statements prepared in accordance with IFRS.
ArcelorMittal also presents Adjusted net (loss) / income as it
believes it is a useful measure for the underlying business
performance excluding impairment items, exceptional items and
derecogniton of deferred tax assets on disposal of ArcelorMittal
USA. 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
0.56x for 3Q 2020 as compared to 0.50x for 2Q 2020 and 0.82x for 3Q
2019.
- Impairment items for 3Q 2020 were gains of $556 million,
consisted of partial reversal of previously recorded impairment
charges following the announced sale of ArcelorMittal USA ($660
million) and an impairment charge of $104 million related to the
permanent closure of a blast furnace and steel plant in Krakow
(Poland). In accordance with IFRS, immediately before the initial
classification as held for sale, the Company ensured that the
carrying amount of the divested business is measured in accordance
with the applicable IFRS as of September 30, 2020. Therefore, the
Company determined the recoverable amount of tangible assets based
on the Fair Value Less Cost of Disposal (“FVLCD”), which was
calculated using the market approach. As a result, the Company
identified a reversal of $660 million of impairment losses
recognized in the prior fiscal year. Exceptional items for 3Q 2020
and 3Q 2019 were nil. Exceptional items in 2Q 2020 of $221 million
include inventory related charges in NAFTA. Impairment net
reversals for 9M 2020 were $464 million and primarily relate to the
partial reversal of previously recorded impairment charges
following the announced sale of ArcelorMittal USA ($660 million),
offset in part by impairment charges of $104 million following of
permanent closure of a blast furnace and steel plant in Krakow
(Poland) and the permanent closure of the coke plant in Florange
(France), at the end of April 2020 ($92 million). Impairment
charges for 9M 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).
- 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. The facility may be further
extended for an additional year in December 2020. As of September
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 New 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 New Credit
Facility. The cancellation notice was effective on July 22, 2020.
As of such date, the facility was terminated.
- Assets and liabilities held for sale, as of September 30, 2020
include the assets and liabilities of ArcelorMittal USA (as well as
Princeton and Monessen and certain other entities within the scope
of the sale of ArcelorMittal USA).
- AMNS India key performance indicators for 3Q 2020 are as
follows: AMNS India’s operations were impacted by the COVID-19
pandemic during 2Q 2020 with lockdown measures (in particular
impacting April 2020). Since then lock down measures have been
lifted, demand has improved and the assets are currently running at
higher utilization levels. 3Q 2020 crude steel production was 1.8Mt
(vs 1.2Mt in 2Q 2020) and EBITDA was $176 million (with 9M 2020
EBITDA of $423 million). Maintenance capital expenditures, interest
expenses and cash tax expense for 2020 are expected to total less
than $250 million per annum.
- On September 29, 2020, ArcelorMittal South Africa issued an
announcement stating: On July 16, 2020, shareholders were informed
that, having reassessed it strategic asset footprint for 2020,
ArcelorMittal South Africa had decided to idle Blast Furnace C (“BF
C”) at Vanderbijlpark and the Vereeniging Electric Arc Furnace
until demand recovered. In terms of the recent assessment of the
market, an increase in demand is evident resulting from
construction projects in process of being completed, retail outlets
responding to higher demand and destocking (running at lower stock
levels) in the steel value chain prior to lockdown. Responding to
the increased demand, ArcelorMittal South Africa has taken the
decision to restart the second blast furnace at its Vanderbijlpark
site in January 2021. This will add around 600 000 tons of
additional annual flat steel production volumes. The additional
volumes are the minimum that can be added through the restart of BF
C and given the current demand expectations for 2021, exports will
be required for certain of the additional volumes.
- The Company is offering green steel using a system of
certificates. These will be issued by an independent auditor to
certify tonnes of CO2 savings achieved through the Company’s
investment in decarbonization technologies in Europe. Net-zero
equivalence is determined by assigning CO2 savings certificates
equivalent to CO2 per tonne of steel produced in 2018 as the
reference. The certificates will relate to the tonnes of CO2 saved
in total, as a direct result of the decarbonization projects being
implemented across a number of its European sites.
- For the balance sheet carrying values please refer to the
financial statements included in ArcelorMittal’s 2019 annual report
on Form 20-F.
Third quarter 2020 earnings analyst conference
call
ArcelorMittal 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 nine-month periods ended
September 30, 2020 on: Thursday November 5, 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/1130/index.en.html
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 Statements
This 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 ArcelorMittal
ArcelorMittal 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/
Enquiries
ArcelorMittal 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
- 3Q20 Earnings release FINAL 5 NOV
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