Paperjam.lu

ArcelorMittal (MT) reported higher-than-expected Ebitda, a measure of net profitability, for the third quarter of 2020. Photo credit: ArcelorMittal   

ArcelorMittal posted a net loss of $261m for the three months ending 30 September 2020, the company said on 5 November. That is less than its net loss of $559m in the second quarter of 2020 and $539m in the third quarter of 2019.

It booked an impairment gain of $556m, caused by the reversal of a $660m impairment charge following the sale of its US business, offset by a new $104m impairment charge for “the permanent closure of a blast furnace and steel plant in Krakow (Poland).” Some of the cash from the US sale will be returned to shareholders.

Ebitda, the company’s preferred measure of core profitability, was $901m in 3Q2020, compared to $707m in 2Q2020 and $1.06bn in 3Q2019. $901m beat the consensus estimate of 19 analysts of $838m.

Sales fell from $16.6bn in 3Q2019 to $13.3bn in 3Q2020; steel shipments rose from 14.8Mt in 2Q2020 to 17.5Mt in 3Q2020, but that still was a decline from 20.2Mt in 3Q2019.

The steelmaker said it reduced its net debt from $10.7bn on 30 September 2019 to $7bn as of 30 September 2020.

Lakshmi N. Mittal, ArcelorMittal’s chairman and CEO, said in a press release: “The third quarter marked an improved operating performance for the group with steel markets recovering gradually from the very challenging second quarter after the ending of lockdowns.”

However, Mittal stated: “The recent rise in covid-19 cases worldwide makes it prudent to remain cautious about the outlook and we should be prepared for further volatility.”

According to Reuters, the company “makes around 5% of the world’s steel”.