ArcelorMittal reports USD 1.1 bn net loss in Jan-Mar quarter

ArcelorMittal reports USD 1.1 bn net loss in Jan-Mar quarter

New Delhi: Luxembourg-based ArcelorMittal on Thursday reported a web lack of USD 1.1 billion for the primary quarter ended March 31, 2020 amid coronavirus pandemic.

The world’s largest steelmaker had posted a web earnings of USD 0.four billion within the year-ago quarter, the corporate mentioned in an announcement.

“ArcelorMittal recorded a net loss for quarter 1, 2020 of USD 1.1 billion… As compared to a net loss for quarter 4, 2019 of USD 1.9 billion and a net income for quarter 1, 2019 of USD 0.4 billion,” the corporate mentioned.

The world’s main built-in metal and mining firm follows January-December fiscal 12 months.

“The improved operating performance in the first quarter has been considerably overshadowed by the COVID-19 crisis. Faced with a significant humanitarian challenge, the company’s first priority has been to take all the necessary actions to safeguard the wellbeing of our people and to provide support to the extent required in the communities in which we operate,” ArcelorMittal Chairman and CEO Lakshmi N Mittal mentioned.

Mittal additional mentioned: “We have also moved decisively to protect the business in the face of completely unprecedented scenario we are facing where social and economic lockdown has contributed to a significant decline in demand.”

The firm additionally needed to cut back manufacturing as a result of decreased demand, he mentioned.

There are nonetheless too many uncertainties to precisely predict what the remainder of the 12 months holds. However, it appears doubtless that over the course of this month nations will begin to announce particulars of their exit methods, Mittal mentioned.

“The remainder of this year will be challenging, but I am confident that ArcelorMittal has the experience and inherent resilience, to manage through these difficult times,” he mentioned.

The gross debt stood at USD 13.eight billion as of March 31, 2020, the corporate mentioned.

The firm additional mentioned, its crude metal manufacturing got here all the way down to 21.1 million tonne (MT) from 24.1 MT in January-March 2019.

Sales stood at USD 14.eight billion as in comparison with USD 19.2 billion in first quarter of 2019, as a result of decrease metal shipments owing to COVID-19 disaster.

Total metal shipments in January-March 2020 had been at 19.5 MT in contrast with to 21.eight MT for first quarter of 2019.

The international escalation of the COVID-19 pandemic and subsequent measures launched by governments worldwide to include it, has negatively impacted financial exercise and industrial provide chains the world over, the corporate mentioned including that it’s experiencing a major decline in industrial exercise in all geographic markets through which it operates.

“The company has responded swiftly by significantly reducing production including temporarily idling steel making and finishing assets globally in alignment with reduced demand and government requirements. As a result, the company expects a significant negative impact on volumes until industrial activity normalizes,” the corporate mentioned.

On the outlook for the sector, it mentioned, metal shipments for the second quarter of 2020 is anticipated to be inside the vary of 13.5 MT to 14.5 MT, whereas the actions taken to cut back all prices in step with decreased working charges are anticipated to yield a discount in fastened, basically sustaining fastened prices per-tonne on the first quarter of 2020 degree.

As a outcome EBITDA (earnings earlier than curiosity, taxes, depreciation, and amortization), which was USD 1 billion within the first quarter, is anticipated to be inside the vary of USD 0.four billion to USD 0.6 billion in second quarter of 2020.

Given this uncertainty, the corporate has withdrawn its forecasts for obvious metal consumption and consequently expects metal shipments in 2020 to be under the 2019 degree.

The firm will proceed to make ongoing selections to regulate manufacturing in varied geographies in accordance with the extent of metal demand and authorities necessities. 

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