Feb. 19, 2014
ArcelorMittal Sees Progress in a Tough Year
Luxembourg-based ArcelorMittal, the world’s largest steelmaker, reported a net loss of $2.5 billion on global sales of $79.4 billion for 2013, compared to a loss of $3.3 billion on sales of $84.2 billion in 2012. Its 2013 EBITDA was a positive $6.9 billion. ArcelorMittal’s steel shipments totaled 84.3 million tons last year, up slightly from 83.8 million tons in 2012.
In its Flat Carbon Americas operation, ArcelorMittal saw sales totaling $19.5 billion in 2013, down from $20.2 billion in 2012. Its 2013 EBITDA of about $1.8 billion was down from the previous year’s earnings of $1.9 billion on total shipments that were flat at around 22.3 million tons. Its average steel selling price was $818 per ton in 2013, down from $854 per ton in 2012.
"The measures we have implemented to strengthen the business continue to yield positive results," said Lakshmi N. Mittal, the company's chairman and CEO, during last month's conference call with analysts and investors. "In 2013, we delivered an 11 percent underlying increase in EBITDA, positive free cash flow and ended the year with net debt at the lowest level since the creation of ArcelorMittal in 2006. The improvement in the overall economic situation led us to restart some selected steel growth projects. In addition, we have expanded our ability to serve the growing NAFTA automotive and energy steel markets through our agreement to acquire ThyssenKrupp’s rolling mill in Calvert, Ala. We are cautiously optimistic about the outlook for 2014 and expect EBITDA for the full year to improve to approximately $8.0 billion [on a 3 percent increase in shipments]."
ArcelorMittal has partnered with Nippon Steel and Sumitomo Metal Corp. to acquire ThyssenKrupp's rolling and finishing facility in Alabama. The deal is on course to receive the necessary regulatory approvals and close in the first quarter.