ArcelorMittal Q4 Net Loss Narrows; Sees Weak EBITDA

(RTTNews) - Steel giant ArcelorMittal (MT) reported Friday a narrower net loss in its fourth quarter, reflecting lower charges. Meanwhile, sales were hurt by lower steel prices and iron ore shipments, despite growth in steel shipments. Looking ahead, the company projects weak EBITDA, a key earnings metric.

ArcelorMittal recorded net loss attributable to equity holders of the parent of $955 million, or $0.53 per share for the fourth quarter 2014, versus a loss of $1.23 billion, or $0.69 loss per share, last year.

The latest results included impairment charges of $264 million, compared to charges of $304 million a year ago. The prior year results also included restructuring charges of $379 million.

For the period, earnings before interest, tax, depreciation and amortization or EBITDA of $1.8 billion was lower than $1.91 billion last year as strong growth in Europe and ACIS segments were more than offset by the negative impact of iron ore prices on the Mining segment on an underlying basis.

Operating income for the quarter was $569 million, as compared to operating loss of $36 million a year earlier.

The company's quarterly sales fell to $18.72 billion from prior year's $19.85 billion. Lower sales was due to 8.3 percent drop in average steel selling prices, 3.4 percent lower marketable iron ore shipments as well as 44.8 percent drop in iron ore reference prices. These were partially offset by improved steel shipments of 3.4 percent.

Total steel shipments for the quarter were 21.2 million metric tonnes, compared to 20.5 million metric tonnes in 2013. Iron ore shipments fell 1.4 percent from last year to 16.3 million metric tonnes.

Looking ahead, the company expects Group EBITDA to be within the range of $6.5 billion - $7 billion for 2015, compared to 2014 EBITDA of $7.2 billion. Additionally, the company projects net interest expense to decline to around $1.4 billion and capital expenditure to decline to approximately $3.4 billion in 2015.

The company expects 4-5 percent increase in Steel segments, as steel markets continue to grow.

For mining segment, assuming current market conditions, the company projects that in excess of one-third of the impact of lower iron ore prices on revenues will be offset by improved cost performance including the benefits of foreign exchange, energy and freight as well as higher volumes

Further, the board proposed to maintain the annual dividend payment at $0.20 per share for 2015.

In Amsterdam, ArcelorMittal shares gained 4.35 percent on Thursday to settle at 9.12 euros.