COMPANIES & STRATEGIES - INDUSTRY

Steel manufacturer

ArcelorMittal's revenue goes up by 52.6% in Q3 compared to last year



ArcelorMittal appears to be emerging well from the pandemic’s effect on the economy with net income of $4.7bn, compared to last year’s net loss of $261m. Matic Zorman

ArcelorMittal appears to be emerging well from the pandemic’s effect on the economy with net income of $4.7bn, compared to last year’s net loss of $261m. Matic Zorman

Luxembourg-based steel company ArcelorMittal reported $53.3bn in revenue for the third quarter of 2021 indicating a 51% increase from the same period last year.

The data is looking positive for the steel giant as its operating income went up by 657% year-over-year to $5.3bn. This constitutes an increase to Q2 2021 as well when the company’s operating income was $4.4bn. Gross debt declined by $1bn to $8.2bn.

ArcelorMittal appears to be emerging well from the pandemic’s effect on the economy with net income of $4.7bn, compared to last year’s net loss of $261m. The company recorded a positive evolution of steel spreads, offsetting 8.4% lower steel shipments due to weaker demand caused by automotive order cancellations. While production constrains and order shipments delays are expected to reverse in Q4 2021.

“Despite the volatility we continue to see as a result of the ongoing presence and repercussions of COVID-19, this has been a very strong year for ArcelorMittal. We have re-positioned our balance sheet, re-set ourselves for the transition to a low-carbon economy, we are growing strategically through high-quality, high-return projects and we are returning capital to shareholders.”said ArcelorMittal’s CEO, Aditya Mittal.

The steel manufacturer will invest €1.1bn in decarbonization technologies at its plant in Gent. While ArcelorMittal Canada will provide support worth CAD$205m to its Port-Cartier pellet plant, enabling this facility to convert its entire 10Mtpa annual pellet production to DRI pellets by the end of 2025.