ArcelorMittal Q2 Profit Rises; Sales Down 12.7% - Quick Facts

(RTTNews) - ArcelorMittal (MT), the world's leading integrated steel and mining company, reported second-quarter net income to equity holders of the parent of $1.11 billion, including one-time $0.8 billion gain from employee benefits at ArcelorMittal US, compared to profit of $179 million, last year. Earnings per share was $0.38 compared to $0.10. Operating income was $1.87 billion compared to $579 million, a year ago. EBITDA was $1.8 billion, 26.5% higher year-over-year.

Second-quarter sales decreased year-over-year to $14.74 billion from $16.89 billion. The company said sales were 12.7% lower primarily due to lower average steel selling prices, lower market-priced iron ore shipments and lower iron ore reference prices. Total steel shipments were 22.1 million metric tonnes, stable as compared to 22.2 million metric tonnes for prior year.

Lakshmi Mittal, ArcelorMittal CEO, said: "ArcelorMittal enjoyed a stronger second quarter due largely to a more supportive pricing environment in our leading markets. We significantly strengthened our balance sheet with proceeds from the rights issue, the Gestamp sale and working capital release reducing net debt to $12.7 billion. The company continues to focus on the implementation of our strategic initiatives, in particular Action 2020, to support profitability."

The company expects fiscal 2016 EBITDA to be in excess of $4.5 billion. The company's cash requirements are expected to total $4.5 billion, a greater than $1 billion reduction as compared to 2015. The components of this reduction are: lower capex spend (2016 capex is expected to be approximately $2.4 billion as compared to $2.7 billion in 2015), lower interest expenses; no dividend in respect of the 2015 financial year; and lower cash taxes.