ArcelorMittal profit jumps 20% as steel, iron prices rally | Fin24
  • Covid-19 Money Hub

    The hub will help answer your business and money questions during the coronavirus crisis.

  • Cigarette Ban

    British American Tobacco says the ban harms the 'emotional well-being' of smokers.

  • Rand Rigging

    The Competition Commission has revived its case against banks accused of currency manipulation.


ArcelorMittal profit jumps 20% as steel, iron prices rally

Feb 10 2017 11:59
Thomas Biesheuvel and Jesse Riseborough


Company Data


Last traded 1
Change 0
% Change 0
Cumulative volume 414818
Market cap 0

Last Updated: 01/01/0001 at 12:00. Prices are delayed by 15 minutes. Source: McGregor BFA

Related Articles

Tribunal approves record R1.5bn ArcelorMittal fine

Mittal comes under fire

ArcelorMittal bets on steel protection as loss balloons

ArcelorMittal asks investors $3bn to endure steel rout

Remgro, Arcelor Mittal battle on chilled JSE

South Africa’s steel industry is on the ropes


London - ArcelorMittal [JSE:ACL], the world’s largest steelmaker, reported a 20% increase in annual profit on rising steel and iron ore prices, and forecast higher demand this year.

The company decided not to reinstate its dividend and stopped providing earnings guidance.

Earnings before interest, taxes, depreciation and amortization rose to $6.26bn last year, the Luxembourg-based company said in a statement on Friday.

The figure beat the $6.14bn average of 18 analysts’ estimates compiled by Bloomberg. Ebitda in the fourth quarter was $1.66bn, 51% higher than a year ago.

Steelmakers’ earnings have been bolstered by a rally in prices as Chinese stimulus stabilized the economy and policy makers around the world pledged to back growth.

European steel prices surged 82% last year, while benchmark rates for iron ore and coking coal, which ArcelorMittal also mines, almost doubled and tripled, respectively.

ArcelorMittal has also benefited from increased efforts to protect US and European markets from record Chinese exports that producers have argued are at unfairly low prices.

The company estimates that global steel consumption will rise 0.5% to 1.5% this year.

The company decided not to reinstate its dividend, preferring instead to pay down debt in an effort to return to an investment-grade credit rating. Net debt decreased by $4.6bn to $11.1bn at year-end, the company said.

"EBITDA was comfortably in excess of initial expectations and, furthermore, we have delivered on our commitment to prioritise debt reduction, significantly strengthening our balance sheet and ending the year with the lowest level of net debt since the creation of the company," chief executive officer Lakshmi Mittal said in the statement.

The shares settled at 7.518 euros on Thursday and have more than tripled in the past year.

Read Fin24's top stories trending on Twitter:

arcelor mittal sa  |  mining  |  earnings reports


Company Snapshot

Voting Booth

How has Covid-19 impacted your financial position?

Previous results · Suggest a vote