ArcelorMittal Reports Third Quarter 2020 Results

World’s leading steel maker ArcelorMittal announced results for the three-month and nine-month periods ended September 30, 2020. ArcelorMittal
ArcelorMittal Reports Third Quarter 2020 Results
ArcelorMittal

Chairman and CEO Mr Lakshmi N Mittal 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 recent rise in COVID-19 cases worldwide makes it prudent to remain cautious about the outlook and we should be prepared for further volatility.”

Highlights

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 USD 0.7 billion in 3Q 2020, including USD 0.6 billion net reversal of impairments, as compared to an operating loss of USD 0.3 billion in 2Q 2020, which included USD 0.2 billion exceptional items

EBITDA of USD 0.9 billion in 3Q 2020, 27.4% higher as compared to USD 0.7 billion 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 USD 0.3 billion in 3Q 2020 as compared to net loss of USD 0.6 billion in 2Q 2020; excluding impairment items partially offset by deferred tax expense each related to the agreed sale of ArcelorMittal USA, adjusted net loss in 3Q 2020 was USD 0.2 billion as compared to adjusted net loss of USD 0.3 billion in 2Q 2020, which excluded exceptional items

Highlights

Heading Unit Q3'20 Q2'20 QoQ Q3'19 YoY 9M'20 9M'19 YoY

Sales USD Million 13,266 10,976 21% 16,634 -20% 39,086 55,101 -29%

Operating income / (loss) USD Million 718 -253 -384% 297 142% 112 908 -88%

EBITDA USD Million 901 707 27% 1,063 -15% 2,575 4,270 -40%

EBITDA/ tonne USD per tonne 52 48 8% 53 -2% 50 66 -24%

Steel-only EBITDA/ tonne USD per tonne 23 21 10% 34 -32% 27 45 -40%

Crude steel production Million tonne 17.2 14.4 19% 22.2 -23% 52.7 70.1 -25%

Steel shipments Million tonne 17.5 14.8 18% 20.2 -13% 51.8 64.8 -20%

Own iron ore production Million tonne 14.8 13.5 10% 13.6 9% 42.7 42.3 1%

Iron ore shipped at market price Million tonne 9.8 9.2 7% 8.4 17% 27.6 27.5 0%

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