Global steel giant ArcelorMittal has reported operating income of USD 4.4 billion & EBITDA of USD 5.1 billion in Januay-Mach 2022 quarter. ArcelorMittal Chief Executive Officer Mr Aditya Mittal said “Our first quarter performance was overshadowed by the war in Ukraine. Our focus has been on providing support to our 26,000 colleagues and their communities at a time of tragedy and hardship. Notwithstanding this backdrop, further aggravated by rising inflationary pressures across the world, ArcelorMittal produced a strong first quarter performance. This is testimony to the resilience of our business model, characterized by diversity of geography, product category and vertical integration.Our performance continues to be supported by consistent execution against our strategy.”January-March 2022 Quarter-----------------------------------Sales - USD 21,836 million, up 5% QoQOperating income – USD 4,433 million, down 3% QoQEBITDA – USD - 5,080 million, up 1% QoQEBITDA per tonne – USD 331 per tonne, up 3% QoQCrude steel production - 16.3 million tonne, down 1% QoQSteel shipments - 15.3 million tonne, down 3% QoQTotal group iron ore production – 12 million tonne, down 10% QoQSteel Operating Results------------------------------Europe: USD 289 per tonne EBITDA, up19.1% QoQ due to a positive price-cost effect with higher contract pricing more than offsetting higher raw material costsNAFTA: USD 467 per tonne EBITDA, up 9.0% QoQ primarily due to higher shipment volumesACIS: USD 186 per tonn EBITDA, down-30.8% QoQ primarily due to lower steel shipments, largely reflecting the impact of the war in Ukraine, and higher costsBrazil: USD 241 pr tonne EBITDA, down 23.1% QoQ primarily due to a negative price-cost effectMarket conditions supportive■ Pace of the real demand recovery has moderated: non-automotive demand continues to recover whilst supply chain effects have continued to impact automotive■ Supply/clemand has tightened: reflecting the implications on supply from the Russia-Ukraine conflict■ Positive steel spread evolution: steel prices have risen to reflect tightening markets■ Uncertainties and risks to the outlook have increased:• Duration of tie Russia-Ukraine conflict and the risks to energy prices• Implications of higher energy prices on econo me activity and consumer confidence, particularly in the EU• Implications of COVID19 on the China economy and the extent to Miich this wil be offset by stimulus actions■ Long term fundamentals intact: given the structural changes to supply and steel's inherent role in the transition to a low carbon, circular economyMr Mittal said “Market conditions are currently very strong although we are now anticipating apparent steel consumption to contract slightly this year compared with 2021. Nevertheless, it is clear that the longer-term fundamental outlook for steel is positive. China’s focus on decarbonization and removal of VAT-rebates on steel exports are encouraging; so too are the actions taken by governments to protect against the threats of unfair trade. And we know that steel will play a critical and vital role in the transition to a decarbonized and circular economy, there is no substitute.”However, ArcelorMittal expects 2022 global steel consumption to contract by 0-1% as Russia's military invasion of Ukraine disrupts supply chains, stoking inflation, while China's COVID-19 lockdowns dampen economic activity, as against ealier view of 0-1% growth. ArcelorMittal expects steel consumption in Europe to decline by 2-4% in 2022, as compared with its prior outlook for a 0-2% growth, due to the negative impact of rising inflation. The company is forecasting demand in the Commonwealth of Independent States, which include Ukraine, to slump 10% during the year, compared with a prior estimate of 0-2% growth.ArcelorMittal has estimated China's full-year demand toward the bottom end of its previous forecast of 0-2% growth because of stringent coronavirus-led lockdowns in the country.The company continues to expect India to grow at 6-8% in 2022, the US at 1-3% and Brazil to contract by 8-10%.
Global steel giant ArcelorMittal has reported operating income of USD 4.4 billion & EBITDA of USD 5.1 billion in Januay-Mach 2022 quarter. ArcelorMittal Chief Executive Officer Mr Aditya Mittal said “Our first quarter performance was overshadowed by the war in Ukraine. Our focus has been on providing support to our 26,000 colleagues and their communities at a time of tragedy and hardship. Notwithstanding this backdrop, further aggravated by rising inflationary pressures across the world, ArcelorMittal produced a strong first quarter performance. This is testimony to the resilience of our business model, characterized by diversity of geography, product category and vertical integration.Our performance continues to be supported by consistent execution against our strategy.”January-March 2022 Quarter-----------------------------------Sales - USD 21,836 million, up 5% QoQOperating income – USD 4,433 million, down 3% QoQEBITDA – USD - 5,080 million, up 1% QoQEBITDA per tonne – USD 331 per tonne, up 3% QoQCrude steel production - 16.3 million tonne, down 1% QoQSteel shipments - 15.3 million tonne, down 3% QoQTotal group iron ore production – 12 million tonne, down 10% QoQSteel Operating Results------------------------------Europe: USD 289 per tonne EBITDA, up19.1% QoQ due to a positive price-cost effect with higher contract pricing more than offsetting higher raw material costsNAFTA: USD 467 per tonne EBITDA, up 9.0% QoQ primarily due to higher shipment volumesACIS: USD 186 per tonn EBITDA, down-30.8% QoQ primarily due to lower steel shipments, largely reflecting the impact of the war in Ukraine, and higher costsBrazil: USD 241 pr tonne EBITDA, down 23.1% QoQ primarily due to a negative price-cost effectMarket conditions supportive■ Pace of the real demand recovery has moderated: non-automotive demand continues to recover whilst supply chain effects have continued to impact automotive■ Supply/clemand has tightened: reflecting the implications on supply from the Russia-Ukraine conflict■ Positive steel spread evolution: steel prices have risen to reflect tightening markets■ Uncertainties and risks to the outlook have increased:• Duration of tie Russia-Ukraine conflict and the risks to energy prices• Implications of higher energy prices on econo me activity and consumer confidence, particularly in the EU• Implications of COVID19 on the China economy and the extent to Miich this wil be offset by stimulus actions■ Long term fundamentals intact: given the structural changes to supply and steel's inherent role in the transition to a low carbon, circular economyMr Mittal said “Market conditions are currently very strong although we are now anticipating apparent steel consumption to contract slightly this year compared with 2021. Nevertheless, it is clear that the longer-term fundamental outlook for steel is positive. China’s focus on decarbonization and removal of VAT-rebates on steel exports are encouraging; so too are the actions taken by governments to protect against the threats of unfair trade. And we know that steel will play a critical and vital role in the transition to a decarbonized and circular economy, there is no substitute.”However, ArcelorMittal expects 2022 global steel consumption to contract by 0-1% as Russia's military invasion of Ukraine disrupts supply chains, stoking inflation, while China's COVID-19 lockdowns dampen economic activity, as against ealier view of 0-1% growth. ArcelorMittal expects steel consumption in Europe to decline by 2-4% in 2022, as compared with its prior outlook for a 0-2% growth, due to the negative impact of rising inflation. The company is forecasting demand in the Commonwealth of Independent States, which include Ukraine, to slump 10% during the year, compared with a prior estimate of 0-2% growth.ArcelorMittal has estimated China's full-year demand toward the bottom end of its previous forecast of 0-2% growth because of stringent coronavirus-led lockdowns in the country.The company continues to expect India to grow at 6-8% in 2022, the US at 1-3% and Brazil to contract by 8-10%.
