ArcelorMittal Sees Minimal Brexit Impact on its Business
July 29 2016 - 2:39AM
Dow Jones News
By Alex MacDonald
LONDON--Steel giant ArcelorMittal (MT) said Friday it expects
little impact on its business from the U.K. decision to exit the
European Union.
"Our early analysis indicates that we expect only a very minimal
impact on our business," the company said in a question and answer
statement following its second-quarter results.
In the short term, the effect on the U.K. economy will be
negative with economic growth slowing to between 0.5% to 1% in 2017
versus a previous forecast of 2.5%, it said. The U.K. accounted for
less than 2% of the Luxembourg-based steelmaker's global sales.
In the European Union, Brexit should lower gross domestic
product growth by 0.5%, the world's largest steelmaker said. The
impact on steel demand within the bloc of 28 member states is
forecast to be less than 1% or 0.5 million tons to 1.5 million
tons. "We still expect steel demand to continue its slow recovery
next year," the company said.
The company also said it plans to reconsider reinstating
dividend payments when net debt drops to two times earnings before
interest, taxes, depreciation and amortization. The net debt ratio
was at 2.5 times Ebitda in the second quarter, it added.
Write to Alex MacDonald at alex.macdonald@wsj.com
(END) Dow Jones Newswires
July 29, 2016 02:24 ET (06:24 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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