ArcelorMittal S.A.: ArcelorMittal reports third quarter 2024
results
Luxembourg, November 7,
2024 - ArcelorMittal (referred to as
“ArcelorMittal” or the “Company” or the "Group") (MT (New York,
Amsterdam, Paris, Luxembourg), MTS (Madrid)), the world’s leading
integrated steel and mining company, today announced
results1 for the three-month and nine-month periods
ended September 30, 2024.
3Q 2024 key highlights:
Safety focus: The Company-wide audit of safety
by dss+ is now complete. It has provided the Group with a clear set
of 6 recommendations which the Company is committed to implement.
LTIF2 rate of 0.88x in 3Q 2024 and 0.68x in 9M 2024
Structurally higher margins and resilient operating
results: Despite the challenging market environment, the
Company continues to demonstrate resilient performance benefiting
from regional diversification. Operating income of $0.7bn in 3Q
2024 (vs $1.0bn in 2Q 2024); EBITDA of $1.6bn in 3Q 2024 (vs.
$1.9bn in 2Q 2024) with EBITDA/t of $118/t in 3Q 2024 ($133/t in 9M
2024) and well above the Group's long-term historical
average18, reflecting structural improvements
Financial strength: Following the acquisition
of c.28.4% stake in Vallourec6 for $1.0bn and $0.3bn
share buybacks, net debt increased to $6.2bn at the end of the
quarter (gross debt of $11.3bn and cash and cash equivalents of
$5.1bn as of September 30, 2024) from $5.2bn as of June 30,
2024
Cash flow being reinvested for growth and shareholder
returns: Over the past 12 months, the Company has
generated investable cash flow7 of $2.8bn with a net
$0.6bn allocated to M&A, $1.5bn invested on strategic growth
capex projects8 and $2.0bn returns to ArcelorMittal
shareholders while maintaining a strong balance sheet
Consistent shareholder returns: The Company
will continue to return a minimum 50% of post-dividend FCF to
shareholders through its share buyback programs. The Company
repurchased 1.5% of its outstanding shares during 3Q 2024 (5.7%
during the 9M 2024) bringing the total reduction in fully diluted
share count to 37% since September 20209. To date, 73m
shares from the current 85m share buy-back program have been
repurchased
Outlook
Positive free cash flow outlook in 2024 and
beyond: FY 2024 capex is expected to be within the
previously communicated guidance range ($4.5bn-$5.0bn). The Company
expects the year to date investment in working capital to reverse
by year end, supporting the outlook for free cash flow generation.
The completion of the Company’s strategic growth projects is
expected to generate additional EBITDA and investable cash flow in
the coming periods10,16. ArcelorMittal continues to
optimize its decarbonization pathway to ensure that the Company can
remain competitive and achieve an appropriate return on
investment
Company believes current market conditions are
unsustainable: China’s excess production relative to
demand is resulting in very low domestic steel spreads (with the
majority of producers loss making) and aggressive exports; steel
prices particularly in Europe are well below the marginal cost
curve. The Company expects apparent demand in our aggregate markets
to be higher in 2H 2024 vs. 2H 2023 (reflecting no repeat of the
destock that impacted Europe ASC in 2H 2023 and YoY demand growth
in India and Brazil). As absolute inventory levels remain low,
particularly in Europe, the Company remains optimistic that
restocking activity will occur once real demand begins to
recover
Positive on medium/long term outlook: Through
its global asset portfolio, ArcelorMittal is uniquely positioned to
capture the anticipated growth in steel demand over the
medium/long-term; the Company’s strategic focus is on safety,
delivering its growth projects, and consistently returning capital
to shareholders whilst maintaining a strong balance sheet
Recently completed strategic projects are performing
well: The Group‘s portfolio of approved strategic growth
projects is estimated to increase EBITDA potential (relative to
historical normalized levels) by $1.8bn10
- Vega CMC (Brazil):
Increase galvanized and cold rolled coil capacity: 1st
continuous annealed commercial coil delivered in June 2024;
1st coated coil produced in July 2024 and
Magnelis® coil in September 2024
- India renewables:
Project combining solar and wind power (1GW) began commissioning in
June 2024, and commenced supply of power to AMNS India as of
September 2024, with the JV benefiting from green power at a lower
cost than accessing the grid
- Mexico HSM is
performing well and expected to achieve targeted profitability in
2024 ($0.3bn EBITDA), despite the disruptions caused by the illegal
blockade that impacted 2Q/3Q 2024 operations
Financial highlights (on the basis of
IFRS1):
|
(USDm) unless otherwise shown |
3Q 24 |
2Q 24 |
3Q 23 |
9M 24 |
9M 23 |
|
Sales |
15,196 |
16,249 |
16,616 |
47,727 |
53,723 |
|
Operating income |
663 |
1,046 |
1,203 |
2,781 |
4,320 |
|
Net income attributable to equity holders of the parent |
287 |
504 |
929 |
1,729 |
3,885 |
|
Adjusted net income attributable to equity holders of the
parent11 |
488 |
677 |
929 |
1,922 |
3,885 |
|
Basic earnings per common share (US$) |
0.37 |
0.63 |
1.11 |
2.18 |
4.59 |
|
Adjusted basic earnings per common share (US$)11 |
0.63 |
0.85 |
1.11 |
2.42 |
4.59 |
|
|
|
|
|
|
|
|
Operating income/tonne (US$/t) |
50 |
75 |
88 |
68 |
102 |
|
EBITDA3 |
1,581 |
1,862 |
2,150 |
5,399 |
7,288 |
|
EBITDA /tonne (US$/t) |
118 |
134 |
157 |
133 |
172 |
|
|
|
|
|
|
|
|
Crude steel production (Mt) |
14.8 |
14.7 |
15.2 |
43.9 |
44.4 |
|
Steel shipments (Mt) |
13.4 |
13.9 |
13.7 |
40.7 |
42.3 |
|
Total Group iron ore production (Mt) |
10.1 |
9.5 |
10.7 |
29.8 |
32.0 |
|
Iron ore production (Mt) (AMMC and Liberia only) |
6.6 |
5.9 |
6.7 |
19.0 |
19.8 |
|
Iron ore shipment (Mt) (AMMC and Liberia only) |
6.3 |
6.2 |
6.3 |
18.8 |
20.3 |
|
|
|
|
|
|
|
|
Weighted average common shares outstanding (in millions) |
778 |
794 |
838 |
794 |
847 |
Commenting, Aditya Mittal, ArcelorMittal
Chief Executive Officer, said:
“A key milestone during Q3 was the completion of the
comprehensive dss+ workplace safety audit. We are now working to
define the implementation plan for the six recommendations in an
accelerated manner and will provide updates on the progress.
"Economic sentiment remains subdued, but we have delivered a
resilient financial performance, reinforcing the structural
strength of the Group. Apparent demand is expected to be stronger
in the second half of this year compared with 2023, and inventory
levels are low, indicating that re-stocking will occur when real
demand recovers. The increased level of imports into Europe is a
concern and stronger trade measures are urgently required to
address this. Similarly, the CBAM needs further strengthening to
ensure it fulfills its aim of ensuring European steelmakers can
remain competitive versus higher-emissions imports.
“Our free cash flow generation enables us to continue to invest
in the business for strategic growth and return capital to
shareholders. Our first renewables project is now operating and
started supplying power to AMNS India in September. The Vega CMC
project is also fully up and running and produced its first
Magnelis® coil in September.
“Globally, the medium to long-term outlook for steel is
positive, and we are confident that ArcelorMittal will continue to
harness its unique geographic presence and strong research and
development capability to meet our stakeholders needs and produce
smarter steels for people and planet.”
Safety and sustainable development
Health and Safety focus:
Protecting employee health and safety remains the overarching
priority of the Company. LTIF rate of 0.88x in 3Q 2024 (vs. 0.57x
in 2Q 2024 and 0.94x in 3Q 2023).
The Company-wide independent safety audit by dss+ is complete.
It is a comprehensive independent safety audit, providing
ArcelorMittal with a clear set of recommendations which the Company
is committed to implement. See website for more details: dss+
safety audit recommendations
The Company is now defining the most effective ways to implement
these recommendations in an accelerated manner. The first phase
includes taking these recommendations to build customized, business
unit- specific work plans, to be incorporated into their five-year
planning cycle.
Own personnel and contractors – Lost
Time Injury Frequency rate
|
|
3Q 24 |
2Q 24 |
3Q 23 |
9M 24 |
9M 23 |
|
North America |
0.43 |
0.31 |
0.09 |
0.26 |
0.15 |
|
Brazil |
0.33 |
0.15 |
0.22 |
0.20 |
0.28 |
|
Europe |
1.47 |
1.06 |
1.50 |
1.25 |
1.42 |
|
Sustainable Solutions |
1.23 |
1.09 |
0.65 |
1.06 |
0.85 |
|
Mining |
0.14 |
0.15 |
0.19 |
0.15 |
0.14 |
|
Others |
1.20 |
0.47 |
1.45 |
0.80 |
0.92 |
|
Total |
0.88 |
0.57 |
0.94 |
0.68 |
0.78 |
Sustainable development
highlights12:
- ArcelorMittal is progressing the
engineering of its decarbonization projects globally to ensure that
it delivers economic decarbonization. Whilst engineering is
ongoing, the Company is engaging with the European Commission and
member states on the measures required to support a low carbon
competitive steel sector in Europe including more robust trade
defences and an effective carbon border adjustment mechanism.
- ArcelorMittal continues to build its
portfolio of renewable energy projects to secure and decarbonize
its future electricity needs. In August 2024, ArcelorMittal Brasil
signed contracts for the development of two solar energy projects
with a combined capacity of 465MW, equivalent to 14% of its current
electricity requirements in Brazil. ArcelorMittal will partner
through JVs with two different renewable companies; Casa dos Ventos
and Atlas Renewable Energy for the projects. This builds on the
554MW capacity wind power project in Brazil that is set to be
commissioned in 2025. The total 1GW Brazil renewable projects are
estimated to add ~$0.1 billion EBITDA benefit to ArcelorMittal.
Group renewable portfolio is now 2.1GW (including India and
investments in Brazil and Argentina17).
Analysis of results for 3Q 2024 versus 2Q
2024
Sales in 3Q 2024 declined by 6.5% to $15.2 billion as compared
to $16.2 billion in 2Q 2024.
Operating income of $0.7 billion in 3Q 2024 was 36.6% lower as
compared 2Q 2024 largely reflecting lower steel prices (-3.7%),
seasonally lower steel shipments (-3.6%), impairments of $36
million related to the closure of the coke oven battery in Krakow
(Poland) and exceptional items of $74 million due to restructuring
costs at the same site.
EBITDA in 3Q 2024 decreased by 15.1% to $1,581 million as
compared to $1,862 million in 2Q 2024, primarily due to weaker
results in North America (negative price-cost effect) and Europe
(seasonally lower steel shipments) offset in part by an improvement
in the Brazil segment primarily due to higher volumes and lower
costs.
Net interest cost of $8 million in 3Q 2024 is broadly stable as
compared to $7 million in 2Q 2024 and continues to benefit from the
capitalization of the interest cost related to certain long term
capex investments.
ArcelorMittal recorded net income in 3Q 2024 of $287 million,
lower as compared to $504 million in 2Q 2024. ArcelorMittal
recorded an adjusted net income11 (i.e., excluding the
impairments and exceptional items discussed above as well as
mark-to-market loss on purchase of Vallourec shares6) in
3Q 2024 of $488 million as compared to $677 million in 2Q 2024.
ArcelorMittal's basic earnings per common share for 3Q 2024 was
$0.37 (adjusted earnings per common share of $0.63) as compared to
$0.63 in 2Q 2024 (adjusted earnings per common share of $0.85).
Net cash provided by operating activities during 3Q 2024
amounted to $1.4 billion, and includes a $0.1 billion release of
working capital. Capex for the quarter amounted to $1.1 billion
(including $0.3 billion spent on strategic growth projects),
leading to a free cashflow of $0.3 billion. Cash outflows for the
purchase of the c.28.4% stake in Vallourec for $1.0 billion and
ongoing share buybacks ($0.3 billion), led to an increase in net
debt to $6.2 billion on September 30, 2024, as compared to $5.2
billion on June 30, 2024.
Analysis of
operations3
North America
|
(USDm) unless otherwise shown |
3Q 24 |
2Q 24 |
3Q 23 |
9M 24 |
9M 23 |
|
Sales |
2,762 |
3,162 |
3,188 |
9,271 |
10,036 |
|
Operating income |
229 |
338 |
520 |
1,152 |
1,637 |
|
Depreciation |
(129) |
(129) |
(125) |
(378) |
(378) |
|
EBITDA |
358 |
467 |
645 |
1,530 |
2,015 |
|
Crude steel production (Kt) |
1,652 |
1,823 |
2,122 |
5,655 |
6,542 |
|
- Flat shipments (Kt) |
1,960 |
1,865 |
1,938 |
6,070 |
6,192 |
|
- Long shipments (Kt) |
540 |
719 |
667 |
1,925 |
2,025 |
|
Steel shipments* (Kt) |
2,408 |
2,468 |
2,527 |
7,672 |
7,974 |
|
Average steel selling price (US$/t) |
955 |
1,040 |
1,043 |
1,014 |
1,049 |
* North America steel shipments include slabs
sourced by the segment from Group companies (mainly the Brazil
segment) and sold to the Calvert JV (eliminated in the Group
consolidation). These shipments can vary between periods due to
slab sourcing mix and timing of vessels: 3Q'24 577kt; 2Q'24 476kt;
3Q'23 393kt, 9M'24 1,534kt and 9M'23 1,227kt.
Sales in 3Q 2024 decreased by 12.7% to $2.8
billion, as compared to $3.2 billion in 2Q 2024 primarily on
account of 8.3% decrease in average steel selling prices and 2.4%
decrease in steel shipments.
As previously communicated on July 19, 2024,
ArcelorMittal Mexico announced that it had reached a settlement
with unions with an agreement to end an illegal blockade at the
site. The electric arc furnace EAF (for slab production) and hot
strip mill resumed normal operations in August 2024. As a result,
3Q 2024 performance was impacted by ~0.4Mt production and EBITDA by
$0.1 billion (same impacts as 2Q 2024).
Operating income in 3Q 2024 decreased by 32.2%
to $229 million as compared to $338 million in 2Q 2024, primarily
due to a negative price-cost impact.
EBITDA in 3Q 2024 of $358 million was 23.5%
lower as compared to $467 million in 2Q 2024.
Brazil13
|
(USDm) unless otherwise shown |
3Q 24 |
2Q 24 |
3Q 23 |
9M 24 |
9M 23 |
|
Sales |
3,218 |
3,243 |
3,560 |
9,512 |
10,454 |
|
Operating income |
414 |
325 |
414 |
1,041 |
1,290 |
|
Depreciation |
(83) |
(88) |
(87) |
(265) |
(264) |
|
EBITDA |
497 |
413 |
501 |
1,306 |
1,554 |
|
Crude steel production (Kt) |
3,842 |
3,607 |
3,669 |
11,013 |
10,453 |
|
- Flat shipments (Kt) |
2,464 |
2,441 |
2,328 |
7,042 |
6,431 |
|
- Long shipments (Kt) |
1,335 |
1,215 |
1,283 |
3,611 |
3,734 |
|
Steel shipments (Kt) |
3,787 |
3,637 |
3,599 |
10,604 |
10,119 |
|
Average steel selling price (US$/t) |
787 |
826 |
932 |
830 |
970 |
Sales in 3Q 2024 remained broadly stable at $3.2 billion as
compared to 2Q 2024, primarily due to a 4.1% increase in steel
shipments largely offsetting a 4.7% decline in average steel
selling prices.
Operating income in 3Q 2024 of $414 million was 27.3% higher as
compared to $325 million in 2Q 2024, due to higher shipments and a
positive price-cost effect (lower costs more than offsetting lower
selling prices).
EBITDA in 3Q 2024 increased by 20.3% to $497 million as compared
to $413 million in 2Q 2024.
Europe
|
(USDm) unless otherwise shown |
3Q 24 |
2Q 24 |
3Q 23 |
9M 24 |
9M 23 |
|
Sales |
7,141 |
7,822 |
7,302 |
22,810 |
25,068 |
|
Operating income |
12 |
194 |
139 |
275 |
883 |
|
Depreciation |
(281) |
(268) |
(278) |
(823) |
(811) |
|
Impairment items |
(36) |
— |
— |
(36) |
— |
|
Exceptional items |
(74) |
— |
— |
(74) |
— |
|
EBITDA |
403 |
462 |
417 |
1,208 |
1,694 |
|
Crude steel production (Kt) |
7,870 |
8,041 |
7,398 |
23,515 |
21,906 |
|
- Flat shipments (Kt) |
4,897 |
5,206 |
4,483 |
15,405 |
15,000 |
|
- Long shipments (Kt) |
1,907 |
2,204 |
1,945 |
6,050 |
6,161 |
|
Steel shipments (Kt) |
6,803 |
7,407 |
6,425 |
21,446 |
21,152 |
|
Average steel selling price (US$/t) |
915 |
929 |
980 |
930 |
1,012 |
Sales in 3Q 2024 declined by 8.7% to $7.1 billion, as compared
to $7.8 billion in 2Q 2024, primarily due to a 8.2% decline in
steel shipment volumes due to seasonality and maintenance in the
long products and a 1.5% decline in average steel selling
prices.
Operating income in 3Q 2024 was $12 million as compared to $194
million in 2Q 2024 primarily due to seasonally lower steel
shipments, impairments of $36 million related to the closure of the
coke oven battery in Krakow (Poland) and exceptional items of $74
million due to restructuring costs at the same site.
EBITDA in 3Q 2024 of $403 million decreased by 12.7% as compared
to $462 million in 2Q 2024 primarily due to seasonally lower steel
shipments.
India and JVs
Income from associates, joint ventures and other
investments (excluding impairments and exceptional items, of which
none in the periods) for 3Q 2024 was $162 million as compared to
$181 million in 2Q 2024, primarily due to lower contributions from
AMNS India.
ArcelorMittal has investments in various joint
venture and associate entities globally. The Company considers
Calvert (50% equity interest) and AMNS India (60% equity interest)
joint ventures to be of particular strategic importance, warranting
more detailed disclosures to improve the understanding of their
operational performance and value to the Company.
AMNS India
|
(USDm) unless otherwise shown |
3Q 24 |
2Q 24 |
3Q 23 |
9M 24 |
9M 23 |
|
Production (Kt) (100% basis) |
1,743 |
1,867 |
1,942 |
5,594 |
5,500 |
|
Shipments (Kt) (100% basis) |
1,887 |
1,892 |
1,874 |
5,795 |
5,383 |
|
Sales (100% basis) |
1,537 |
1,580 |
1,680 |
4,932 |
4,998 |
|
EBITDA (100% basis) |
162 |
237 |
533 |
711 |
1,437 |
Sales in 3Q 2024 declined by 2.8% to $1.5
billion as compared to $1.6 billion in 2Q 2024, primarily due to
lower average steel selling prices.
EBITDA during 3Q 2024 declined by 31.3% to $162
million as compared to $237 million in 2Q 2024, driven by a
negative price-cost effect.
Calvert14
|
(USDm) unless otherwise shown |
3Q 24 |
2Q 24 |
3Q 23 |
9M 24 |
9M 23 |
|
Production (Kt) (100% basis) |
1,094 |
1,202 |
1,178 |
3,512 |
3,602 |
|
Shipments (Kt) (100% basis) |
1,015 |
1,145 |
1,063 |
3,291 |
3,390 |
|
Sales (100% basis) |
1,054 |
1,244 |
1,195 |
3,534 |
3,746 |
|
EBITDA (100% basis) |
126 |
166 |
105 |
480 |
284 |
Sales in 3Q 2024 declined by 15.3% to $1.1 billion as compared
to $1.2 billion in 2Q 2024 primarily due to lower shipments driven
by weaker demand.
EBITDA during 3Q 2024 of $126 million was 24.2% lower as
compared to $166 million in 2Q 2024, primarily due to lower steel
shipments and a negative price-cost effect.
Sustainable
Solutions15
|
(USDm) unless otherwise shown |
3Q 24 |
2Q 24 |
3Q 23 |
9M 24 |
9M 23 |
|
Sales |
2,542 |
2,891 |
2,680 |
8,322 |
9,010 |
|
Operating income |
17 |
55 |
21 |
98 |
210 |
|
Depreciation |
(38) |
(40) |
(35) |
(122) |
(105) |
|
EBITDA |
55 |
95 |
56 |
220 |
315 |
Sales in 3Q 2024 declined by 12.1% to $2.5 billion as compared
to $2.9 billion in 2Q 2024.
Operating income in 3Q 2024 was lower at $17 million as compared
to $55 million in 2Q 2024, mainly in the Projects business,
impacted by seasonality.
EBITDA in 3Q 2024 of $55 million was 42.1% lower as compared to
$95 million in 2Q 2024.
Mining
|
(USDm) unless otherwise shown |
3Q 24 |
2Q 24 |
3Q 23 |
9M 24 |
9M 23 |
|
Sales |
589 |
641 |
729 |
1,959 |
2,313 |
|
Operating income |
128 |
150 |
275 |
524 |
874 |
|
Depreciation |
(65) |
(66) |
(57) |
(196) |
(169) |
|
EBITDA |
193 |
216 |
332 |
720 |
1,043 |
|
Iron ore production (Mt) |
6.6 |
5.9 |
6.7 |
19.0 |
19.8 |
|
Iron ore shipment (Mt) |
6.3 |
6.2 |
6.3 |
18.8 |
20.3 |
Note: Mining segment comprises iron ore operations of
ArcelorMittal Mines Canada (AMMC) and ArcelorMittal Liberia.
Sales in 3Q 2024 declined by 8.0% to $589 million as compared to
$641 million in 2Q 2024 primarily due to lower iron ore reference
prices (-10.8%).
Iron ore production in 3Q 2024 increased by 13.1% to 6.6Mt as
compared to 5.9Mt in 2Q 2024 primarily due to a recovery in
ArcelorMittal Mines Canada which had been impacted by wildfires in
the Port Cartier region in June leading to Port disruption, as well
as maintenance.
Operating income in 3Q 2024 declined by 14.6% to $128 million as
compared to $150 million in 2Q 2024 driven by lower iron ore
reference prices offset in part by lower costs as production
volumes recovered.
EBITDA in 3Q 2024 of $193 million was 11.0% lower as compared to
$216 million in 2Q 2024.
Other recent developments
On October 11, 2024, ArcelorMittal announced that it had entered
into a definitive Equity Purchase Agreement (the “Agreement”) with
Nippon Steel Corporation (“NSC”) pursuant to which ArcelorMittal
will purchase NSC’s 50% equity interest in the AM/NS Calvert Joint
Venture (the “Transaction”). The Transaction has been entered into
at the request of NSC to address regulatory concerns pursuant to
its agreed acquisition of US Steel. The Transaction is subject to
NSC completing its pending acquisition of US Steel, which is
subject to various other regulatory requirements.
Under the terms of the agreement, ArcelorMittal will pay $1
consideration for the Transaction; further, NSC will inject cash
and forgive partner loans in an amount estimated to be
approximately $0.9 billion.
There are no assurances or guarantees that NSC will complete its
acquisition of US Steel. Should NSC not complete its acquisition of
US Steel, then the Agreement will not come into effect and the
AM/NS Calvert JV will continue.
ArcelorMittal Condensed Consolidated Statements of
Financial Position1
|
In millions of U.S. dollars |
Sept 30, 2024 |
Jun 30, 2024 |
Dec 31, 2023 |
|
ASSETS |
|
|
|
|
Cash and cash equivalents |
5,094 |
5,903 |
7,783 |
|
Trade accounts receivable and other |
4,238 |
4,186 |
3,661 |
|
Inventories |
18,474 |
17,690 |
18,759 |
|
Prepaid expenses and other current assets |
3,255 |
3,229 |
3,037 |
|
Total Current Assets |
31,061 |
31,008 |
33,240 |
|
|
|
|
|
|
Goodwill and intangible assets |
4,762 |
4,947 |
5,102 |
|
Property, plant and equipment |
34,535 |
33,142 |
33,656 |
|
Investments in associates and joint ventures6 |
11,304 |
10,168 |
10,078 |
|
Deferred tax assets |
9,525 |
9,563 |
9,469 |
|
Other assets |
1,981 |
2,019 |
2,372 |
|
Total Assets |
93,168 |
90,847 |
93,917 |
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
Short-term debt and current portion of long-term debt |
2,356 |
2,357 |
2,312 |
|
Trade accounts payable and other |
13,164 |
12,493 |
13,605 |
|
Accrued expenses and other current liabilities |
5,761 |
5,456 |
5,852 |
|
Total Current Liabilities |
21,281 |
20,306 |
21,769 |
|
|
|
|
|
|
Long-term debt, net of current portion |
8,903 |
8,770 |
8,369 |
|
Deferred tax liabilities |
2,318 |
2,270 |
2,432 |
|
Other long-term liabilities |
5,302 |
5,202 |
5,279 |
|
Total Liabilities |
37,804 |
36,548 |
37,849 |
|
|
|
|
|
|
Equity attributable to the equity holders of the parent |
53,308 |
52,204 |
53,961 |
|
Non-controlling interests |
2,056 |
2,095 |
2,107 |
|
Total Equity |
55,364 |
54,299 |
56,068 |
|
Total Liabilities and Shareholders’ Equity |
93,168 |
90,847 |
93,917 |
ArcelorMittal Condensed Consolidated Statements of
Operations1
|
|
Three months ended |
Nine months ended |
|
In millions of U.S. dollars unless otherwise
shown |
Sept 30, 2024 |
Jun 30, 2024 |
Sept 30, 2023 |
Sept 30, 2024 |
Sept 30, 2023 |
|
Sales |
15,196 |
16,249 |
16,616 |
47,727 |
53,723 |
|
Depreciation (B) |
(646) |
(635) |
(662) |
(1,923) |
(1,972) |
|
Impairment items4 (B) |
(36) |
— |
— |
(36) |
— |
|
Exceptional items5 (B) |
(74) |
— |
— |
(74) |
— |
|
Operating income (A) |
663 |
1,046 |
1,203 |
2,781 |
4,320 |
|
Operating margin % |
4.4 % |
6.4 % |
7.2 % |
5.8 % |
8.0 % |
|
|
|
|
|
|
|
|
Income from associates, joint ventures and other investments
(excluding impairments and exceptional items) (C) |
162 |
181 |
285 |
585 |
996 |
|
Net interest expense |
(8) |
(7) |
(31) |
(78) |
(142) |
|
Foreign exchange and other net financing loss |
(112) |
(260) |
(224) |
(633) |
(474) |
|
Non-cash mark-to-market loss until acquisition of c.28.4% Vallourec
shares6 |
(91) |
(173) |
— |
(83) |
— |
|
Income before taxes and non-controlling
interests |
614 |
787 |
1,233 |
2,572 |
4,700 |
|
Current tax expense |
(164) |
(179) |
(282) |
(664) |
(880) |
|
Deferred tax (expense)/benefit |
(151) |
(96) |
10 |
(123) |
188 |
|
Income tax expense (net) |
(315) |
(275) |
(272) |
(787) |
(692) |
|
Income including non-controlling interests |
299 |
512 |
961 |
1,785 |
4,008 |
|
Non-controlling interests income |
(12) |
(8) |
(32) |
(56) |
(123) |
|
Net income attributable to equity holders of the
parent |
287 |
504 |
929 |
1,729 |
3,885 |
|
|
|
|
|
|
|
|
Basic earnings per common share ($) |
0.37 |
0.63 |
1.11 |
2.18 |
4.59 |
|
Diluted earnings per common share ($) |
0.37 |
0.63 |
1.10 |
2.17 |
4.57 |
|
|
|
|
|
|
|
|
Weighted average common shares outstanding (in millions) |
778 |
794 |
838 |
794 |
847 |
|
Diluted weighted average common shares outstanding (in
millions) |
781 |
797 |
841 |
796 |
850 |
|
|
|
|
|
|
|
|
OTHER INFORMATION |
|
|
|
|
|
|
EBITDA (A-B+C) |
1,581 |
1,862 |
2,150 |
5,399 |
7,288 |
|
EBITDA Margin % |
10.4 % |
11.5 % |
12.9 % |
11.3 % |
13.6 % |
|
|
|
|
|
|
|
|
Total Group iron ore production (Mt) |
10.1 |
9.5 |
10.7 |
29.8 |
32.0 |
|
Crude steel production (Mt) |
14.8 |
14.7 |
15.2 |
43.9 |
44.4 |
|
Steel shipments (Mt) |
13.4 |
13.9 |
13.7 |
40.7 |
42.3 |
ArcelorMittal Condensed Consolidated Statements of Cash
flows1
|
|
Three months ended |
Nine months ended |
|
In millions of U.S. dollars |
Sept 30, 2024 |
Jun 30, 2024 |
Sept 30, 2023 |
Sept 30, 2024 |
Sept 30, 2023 |
|
Operating activities: |
|
|
|
|
|
|
Income attributable to equity holders of the
parent |
287 |
504 |
929 |
1,729 |
3,885 |
|
Adjustments to reconcile net income to net cash provided by
operations: |
|
|
|
|
|
|
Non-controlling interests income |
12 |
8 |
32 |
56 |
123 |
|
Depreciation and impairments4 |
682 |
635 |
662 |
1,959 |
1,972 |
|
Exceptional items5 |
74 |
— |
— |
74 |
— |
|
Income from associates, joint ventures and other investments |
(162) |
(181) |
(285) |
(585) |
(996) |
|
Deferred tax expenses/(benefit) |
151 |
96 |
(10) |
123 |
(188) |
|
Change in working capital |
132 |
84 |
(269) |
(1,503) |
(866) |
|
Other operating activities (net) |
235 |
(73) |
222 |
531 |
387 |
|
Net cash provided by operating activities (A) |
1,411 |
1,073 |
1,281 |
2,384 |
4,317 |
|
Investing activities: |
|
|
|
|
|
|
Purchase of property, plant and equipment and intangibles (B) |
(1,051) |
(985) |
(1,165) |
(3,272) |
(3,163) |
|
Other investing activities (net)6 |
(814) |
(57) |
187 |
(597) |
(1,699) |
|
Net cash used in investing activities |
(1,865) |
(1,042) |
(978) |
(3,869) |
(4,862) |
|
Financing activities: |
|
|
|
|
|
|
Net (payments) proceeds relating to payable to banks and long-term
debt |
(109) |
1,007 |
262 |
564 |
(1,139) |
|
Dividends paid to ArcelorMittal shareholders |
— |
(200) |
— |
(200) |
(185) |
|
Dividends paid to minorities shareholders (C) |
(85) |
(7) |
(66) |
(169) |
(131) |
|
Share buyback |
(277) |
(293) |
(38) |
(1,167) |
(742) |
|
Lease payments and other financing activities (net) |
(62) |
7 |
(56) |
(107) |
(540) |
|
Net cash (used) provided by financing
activities |
(533) |
514 |
102 |
(1,079) |
(2,737) |
|
Net (decrease)/increase in cash and cash equivalents |
(987) |
545 |
405 |
(2,564) |
(3,282) |
|
Effect of exchange rate changes on cash |
147 |
(81) |
(85) |
(124) |
127 |
|
Change in cash and cash equivalents |
(840) |
464 |
320 |
(2,688) |
(3,155) |
|
|
|
|
|
|
|
|
Free cash flow (A+B+C) |
275 |
81 |
50 |
(1,057) |
1,023 |
Appendix 1: Capital
expenditures1
|
(USD million) |
3Q 24 |
2Q 24 |
3Q 23 |
9M 24 |
9M 23 |
|
North America |
50 |
100 |
72 |
261 |
309 |
|
Brazil |
213 |
211 |
243 |
627 |
625 |
|
Europe |
374 |
275 |
367 |
1,092 |
1,000 |
|
Sustainable Solutions |
75 |
80 |
150 |
315 |
289 |
|
Mining |
268 |
262 |
207 |
765 |
579 |
|
Others |
71 |
57 |
126 |
212 |
361 |
|
Total |
1,051 |
985 |
1,165 |
3,272 |
3,163 |
Appendix 2: Debt repayment schedule as of September 30,
2024
|
(USD billion) |
2024 |
2025 |
2026 |
2027 |
≥2028 |
Total |
| Bonds |
— |
1.0 |
1.1 |
1.2 |
3.7 |
7.0 |
|
Commercial paper |
1.2 |
— |
— |
— |
— |
1.2 |
|
Other loans |
0.3 |
0.8 |
0.3 |
0.8 |
0.9 |
3.1 |
|
Total gross debt |
1.5 |
1.8 |
1.4 |
2.0 |
4.6 |
11.3 |
As of September 30, 2024, the average debt maturity is 6.7
years.
Appendix 3: Reconciliation of gross debt to net
debt
|
(USD million) |
Sept 30, 2024 |
Jun 30, 2024 |
Dec 31, 2023 |
|
Gross debt |
11,259 |
11,127 |
10,681 |
|
Less: Cash and cash equivalents |
(5,094) |
(5,903) |
(7,783) |
|
Net debt |
6,165 |
5,224 |
2,898 |
|
|
|
|
|
|
Net debt / LTM EBITDA |
0.9 |
0.7 |
0.3 |
Appendix 4: Adjusted net income and adjusted basic
EPS
|
(USD million) |
3Q 24 |
2Q 24 |
3Q 23 |
9M 24 |
9M 23 |
|
Net income attributable to equity holders of the
parent |
287 |
504 |
929 |
1,729 |
3,885 |
|
Impairment items4 |
(36) |
— |
— |
(36) |
— |
|
Exceptional items5 |
(74) |
— |
— |
(74) |
— |
|
Mark-to-market loss on purchase of c.28.4% stake in
Vallourec6 |
(91) |
(173) |
— |
(83) |
— |
|
Adjusted net income attributable to equity holders of the
parent |
488 |
677 |
929 |
1,922 |
3,885 |
|
|
|
|
|
|
|
|
Weighted average common shares outstanding (in millions) |
778 |
794 |
838 |
794 |
847 |
|
Adjusted basic EPS $/share |
0.63 |
0.85 |
1.11 |
2.42 |
4.59 |
Appendix 5: Terms and
definitions
Unless indicated otherwise, or the context otherwise requires,
references in this earnings release to the following terms have the
meanings set out next to them below:
Adjusted basic EPS: refers to adjusted net
income divided by the weighted average common shares
outstanding.
Adjusted net income: refers to reported net income
less impairment items and exceptional items and mark-to-market loss
on purchase of c.28.4% shares in Vallourec
Apparent steel consumption: calculated as the sum
of production plus imports minus exports.
Average steel selling prices: calculated as steel
sales divided by steel shipments.
Cash and cash equivalents: represents cash and
cash equivalents, restricted cash and short-term investments.
Capex: represents the purchase of property, plant
and equipment and intangibles. The Group’s capex figures do not
include capex at the JVs level (i.e.: AMNS India and Calvert).
Crude steel production: steel in the first solid
state after melting, suitable for further processing or for
sale.
Depreciation: refers to amortization and
depreciation.
EPS: refers to basic or diluted earnings per
share.
EBITDA: defined as operating result plus
depreciation, impairment items and exceptional items and result
from associates, joint ventures and other investments (excluding
impairments and exceptional items if any).
EBITDA/tonne: calculated as EBITDA divided by
total steel shipments.
Exceptional items: income / (charges) relate to
transactions that are significant, infrequent or unusual and are
not representative of the normal course of business of the
period.
Free cash flow (FCF): refers to net cash provided
by operating activities less capex less dividends paid to minority
shareholders.
Foreign exchange and other net financing
income(loss): include foreign currency exchange impact,
bank fees, interest on pensions, impairment of financial assets,
revaluation of derivative instruments and other charges that cannot
be directly linked to operating results.
Gross debt: long-term debt and short-term
debt.
Impairment items: refers to impairment charges net
of reversals.
Income from associates, joint ventures and other
investments: refers to income from associates, joint
ventures and other investments (excluding impairments and
exceptional items if any).
Investable cash flow: refers to net cash provided
by operating activities less maintenance/normative capex.
Iron ore reference prices: refers to iron ore
prices for 62% Fe CFR China. Pricing is generally linked to market
price indexes and uses a variety of mechanisms, including current
spot prices and average prices over specified periods. Therefore,
there may not be a direct correlation between market reference
prices and actual selling prices in various regions at a given
time.
Kt: refers to thousand metric tonnes.
Liquidity: cash and cash equivalents plus
available credit lines excluding back-up lines for the commercial
paper program.
LTIF: refers to lost time injury frequency rate
equals lost time injuries per 1,000,000 worked hours, based on own
personnel and contractors.
Maintenance/normative capex: refers to recurring
expenditures required for a company to continue operating and
sustain its growth.
Mt: refers to million metric tonnes.
Net debt: long-term debt and short-term debt less
cash and cash equivalents.
Net debt/LTM EBITDA: refers to Net debt divided by
EBITDA for the last twelve months.
Net interest expense: includes interest expense
less interest income.
On-going projects: refer to projects for which
construction has begun (excluding various projects that are under
development), even if such projects have been placed on hold
pending improved operating conditions.
Operating results: refers to operating
income(loss).
Operating segments: North America segment includes
the Flat, Long and Tubular operations of Canada and Mexico; and
also includes all Mexico mines. The Brazil segment includes the
Flat, Long and Tubular operations of Brazil and its neighboring
countries including Argentina, Costa Rica, Venezuela; and also
includes Andrade and Serra Azul captive iron ore mines. The Europe
segment includes the Flat, Long and includes Bosnia and Herzegovina
captive iron ore mines; Sustainable Solutions division includes
Downstream Solutions and Tubular operations of the European
business. The Others segment includes the Flat, Long and Tubular
operations of Kazakhstan (till December 7, 2023), Ukraine and South
Africa; and also includes the captive iron ore mines in Ukraine and
iron ore and coal mines in Kazakhstan (till December 7, 2023).
Mining segment includes iron ore operations of ArcelorMittal Mines
Canada and ArcelorMittal Liberia.
Own iron ore production: includes total of all
finished production of fines, concentrate, pellets and lumps and
includes share of production.
Price-cost effect: a lack of correlation or a lag
in the corollary relationship between raw material and steel
prices, which can either have a positive (i.e. increased spread
between steel prices and raw material costs) or negative effect
(i.e. a squeeze or decreased spread between steel prices and raw
material costs).
Shipments: information at segment and Group level
eliminates intra-segment shipments (which are primarily between
Flat/Long plants and Tubular plants) and inter-segment shipments
respectively. Shipments of Downstream Solutions are excluded.
Working capital change (working capital investment /
release): Movement of change in working capital - trade
accounts receivable plus inventories less trade and other accounts
payable.
Footnotes
- The financial information in this
press release has been prepared consistently with International
Financial Reporting Standards (“IFRS”) as issued by the
International Accounting Standards Board (“IASB”) and as adopted by
the European Union. The interim financial information included in
this announcement has also been prepared in accordance with IFRS
applicable to interim periods, however this announcement does not
contain sufficient information to constitute an interim financial
report as defined in International Accounting Standard 34, “Interim
Financial Reporting”. The numbers in this press release have not
been audited. The financial information and certain other
information presented in a number of tables in this press release
have been rounded to the nearest whole number or the nearest
decimal. Therefore, the sum of the numbers in a column may not
conform exactly to the total figure given for that column. In
addition, certain percentages presented in the tables in this press
release reflect calculations based upon the underlying information
prior to rounding and, accordingly, may not conform exactly to the
percentages that would be derived if the relevant calculations were
based upon the rounded numbers. Segment information presented in
this press release is prior to inter-segment eliminations and
certain adjustments made to operating results of the segments to
reflect corporate costs, income from non-steel operations (e.g.
logistics and shipping services) and the elimination of stock
margins between the segments.
- LTIF refers to lost time injury frequency rate equals lost time
injuries per 1,000,000 worked hours, based on own personnel and
contractors.
- As announced with ArcelorMittal’s fourth quarter 2023 financial
results, the Company has amended its presentation of reportable
segments and EBITDA. The changes, applied as from January 1, 2024,
are as follows: EBITDA is defined as operating result plus
depreciation, impairment items and exceptional items and result
from associates, joint ventures and other investments (excluding
impairments and exceptional items if any); The NAFTA segment has
been renamed "North America", a core growth region for the Company;
A new ‘Sustainable Solutions’ segment is composed of a number of
high-growth, niche, capital light businesses, playing an important
role in supporting climate action (including renewables, special
projects and construction business). Previously reported within the
Europe segment, this is a growth vector of the Company and
represents businesses employing over 12,000 people at more than 260
commercial and production sites across 60+ countries. Following the
sale of the Company’s operations in Kazakhstan, the remaining parts
of the former ‘ACIS’ segment have been assigned to ‘Others’; there
are no changes to the ‘Brazil’ and ‘Mining’ segments. ‘India and
JVs’ is now presented and the share of net income of AMNS India and
AMNS Calvert as well as the other associates, joint ventures and
other investments is included in EBITDA. India is a high growth
vector of the Company, with our assets well-positioned to grow with
the domestic market. These changes have been applied as from
January 1, 2024, and the comparative periods of 2023 shown herein
have been retrospectively recast.
- Impairment charges (included in operating income) for 3Q 2024
of $36 million related to the closure of the coke oven battery in
Krakow (Poland).
- Exceptional items (included in operating income) for 3Q 2024 of
$74 million related to restructuring costs in Krakow (Poland).
- On August 6, 2024, ArcelorMittal announced that following the
signature of a Share Purchase Agreement on March 12, 2024, and
after the approval of relevant antitrust authorities and clearances
under foreign investment regulations, it had completed the
acquisition of 65,243,206 shares, representing c.28.4% equity
interest in Vallourec, for €14.64 per share from funds managed by
Apollo Global Management Inc., for a total consideration of
approximately €955 million. Vallourec share price increased to
€17.20 as of March 31, 2024, as compared to €14.64 contractually
agreed at the signing of the share price agreement for 65.2 million
shares on March 12, 2024 generating a non-cash mark-to-market gain
of $181 million as of March 31, 2024. The Vallourec share price
decreased to €14.76 as of June 30, 2024 (causing a non-cash
mark-to-market loss of $173 million in 2Q 2024), and decreased to
€13.47 as at the date of the finalization of the acquisition on
August 6, 2024 (causing a non-cash mark-to-market loss of $91
million in 3Q 2024). In accordance with IFRS, the Company
recognized this net loss as a decrease in the investment cost to
reflect the fair value of the forward at acquisition date.
- Investable cash flow is defined as net cash provided by
operating activities less maintenance/normative capex. From
September 30, 2023 to September 30, 2024, the net cash provided by
operating activities totalled $5.7 billion. Total capex during this
period was $4.7 billion of which maintenance/normative capex was
$2.9 billion, strategic capex of $1.5 billion and decarbonization
of $0.3 billion.
- 3Q 2024 included decarbonization
capex of $0.1 billion, strategic growth capex of $0.3 billion and
maintenance/normative capex of $0.7 billion. 9M 2024 includes
decarbonization capex of $0.2 billion, strategic growth capex of
$1.0 billion and maintenance/normative capex of $2.1 billion.
Strategic projects capex in 3Q 2024 primarily include investments
for the Liberia expansion project (first concentrate), Mardyck
electrical steels, Barra Mansa and Serra Azul. Strategic projects
capex in 9M 2024 primarily included investments for the Liberia
expansion project (first concentrate), the renewables energy
project in India and Mardyck electrical steels.
- September 2020 was the inception
date of the ongoing share buyback programs. The Company has
repurchased 47 million shares during 9M 2024; totalling 73 million
shares from the current 85 million share buyback program.
- Following the completion of detailed
engineering, the Monlevade expansion project in Brazil has been put
“on hold” (seeking lower capex intensive options). The Company
anticipates approving projects of a similar scale (capex and EBITDA
impact) during its forthcoming strategic planning cycle, hence no
change to the expected $1.8 billion impact on EBITDA from strategic
growth investments. Out of the total $1.8 billion EBITDA potential,
it is considered that $0.3 billion has been achieved to date from
the completion of the Mexico HSM project on an observed run-rate
basis. Vallourec transaction closed in 3Q 2024 and ArcelorMittal’s
c.28.4% share of consensus 2025 net income (based on consensus
figures from a panel of independent analysts) is ~$0.15 billion.
Together with Italpannelli acquisition expected to contribute $0.2
billion to EBITDA.
- See Appendix 4 for reconciliation of
adjusted net income and adjusted basic earnings per share.
- XCarb® is designed to
bring together all of ArcelorMittal’s reduced, low and zero-carbon
products and steelmaking activities, as well as wider initiatives
and green innovation projects, into a single effort focused on
achieving demonstrable progress towards carbon neutral steel.
Alongside the new XCarb® brand, we have launched three
XCarb® initiatives: the XCarb® innovation
fund, XCarb® green steel certificates and
XCarb® recycled and renewably produced for products made
via the Electric Arc Furnace route using scrap. The Company is
offering green steel using a system of certificates
(XCarb® green certificates). These are issued by an
independent auditor to certify tonnes of CO2 savings achieved
through the Company’s investment in decarbonization technologies in
Europe. Net-zero equivalence is determined by assigning CO2 savings
certificates equivalent to CO2 per tonne of steel produced in 2018
as baseline. The certificates relate to the tonnes of CO2 saved in
total, as a direct result of the decarbonization projects being
implemented across a number of its European sites.
- On March 9, 2023, ArcelorMittal
announced that following receipt of customary regulatory approvals
it had completed the acquisition of Companhia Siderúrgica do Pecém
(‘CSP’) in Brazil for an enterprise value of approximately $2.2
billion.
- Production: Including all production
of the hot strip mill including processing of slabs on a hire work
basis for ArcelorMittal Group entities and third parties, including
stainless steel slabs. Shipments: including shipments of finished
products processed on a hire work basis for ArcelorMittal Group
entities and third parties, including stainless steel products.
EBITDA of Calvert presented here on a 100% basis as a stand-alone
business and in accordance with the Company's policy, applying the
weighted average method of accounting for inventory.
- Sustainable Solutions is focused on
growing niche businesses providing vital added-value support to
growing sustainable related applications from a low-carbon, capital
light asset base. These businesses include: a) Construction
solutions: Product offerings include sandwich panels (e.g.
insulation), profiles, turnkey pre-fabrication solutions, etc., to
assist building in smarter ways and reduce the carbon footprint of
buildings; b) Projects: Product range includes plates, pipes &
tubes, wire ropes, reinforced steels, providing high-quality &
sustainable steel solutions for energy projects and supporting
offshore wind, energy transition and onshore construction; c)
Industeel: EAF based capacity: High quality steel grades designed
to meet demanding customer specifications (e.g. XCarb®
for wind turbines); Supplying wide range of industries; energy,
chemicals, mechanical engineering, machinery, infrastructure,
defence & security; d) Renewables: investments in renewable
energy projects; e) Metallics: investment and development of the
Company’s scrap recycling and collection capabilities; f)
Distribution & service centers: European services processor
including slitting, cut-to-length, multi blanking, and press
blanking and operating through an extensive network.
- Other projects under development
include: ArcelorMittal Texas: Plans under development to double
capacity and add CCS capability; Calvert (US): Option to add a
second 1.5Mt EAF at lower capex intensity; Electrical steels US
(Alabama): 150kt NGO electrical steels for automotive with
government support received; Liberia further expansion to 30Mt; and
India further expansion: Hazira to 20Mt and Greenfield on the east
coast of India.
- In Argentina, ArcelorMittal has developed a partnership with
PCR for a 130MW solar and wind capacity project. The project is
operational and supplies over 30% of ArcelorMittal's local
electricity requirements.
- Compared to the historical average EBITDA per tonne of $89/t
during the 2012-2019 period.
Third quarter 2024 earnings analyst
conference call
ArcelorMittal Management will host a conference call for members of
the investment community to present and comment on the three-month
period ended September 30, 2024 on: Thursday November 7,
2024, at 9.30am US Eastern time. 14.30pm London time and 15.30pm
CET.
To access via the conference call and ask a question during the
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Forward-Looking Statements
This document contains forward-looking information and
statements about ArcelorMittal and its subsidiaries. These
statements include financial projections and estimates and their
underlying assumptions, statements regarding plans, objectives and
expectations with respect to future operations, products and
services, and statements regarding future performance.
Forward-looking statements may be identified by the words
“believe”, “expect”, “anticipate”, “target” or similar expressions.
Although ArcelorMittal’s management believes that the expectations
reflected in such forward-looking statements are reasonable,
investors and holders of ArcelorMittal’s securities are cautioned
that forward-looking information and statements are subject to
numerous risks and uncertainties, many of which are difficult to
predict and generally beyond the control of ArcelorMittal, that
could cause actual results and developments to differ materially
and adversely from those expressed in, or implied or projected by,
the forward-looking information and statements. These risks and
uncertainties include those discussed or identified in the filings
with the Luxembourg Stock Market Authority for the Financial
Markets (Commission de Surveillance du Secteur Financier) and the
United States Securities and Exchange Commission (the “SEC”) made
or to be made by ArcelorMittal, including ArcelorMittal’s latest
Annual Report on Form 20-F on file with the SEC. ArcelorMittal
undertakes no obligation to publicly update its forward-looking
statements, whether as a result of new information, future events,
or otherwise.
Non-GAAP/Alternative Performance
Measures
This press release also includes certain non-GAAP
financial/alternative performance measures. ArcelorMittal presents
EBITDA and EBITDA/tonne, free cash flow (FCF), adjusted net income,
adjusted basic earnings per share and the ratio of net debt/LTM
EBITDA which are non-GAAP financial/alternative performance
measures, as additional measures to enhance the understanding of
its operating performance. As announced previously, the definition
of EBITDA has been revised to include income from share of
associates, JVs and other investments (excluding impairments and
exceptional items if any, of associates, JVs and other investments)
because the Company believes this information provides investors
with additional information to understand its results, given the
increasing significance of its joint ventures. ArcelorMittal
believes such indicators are relevant to provide management and
investors with additional information. ArcelorMittal also presents
net debt and change in working capital as additional measures to
enhance the understanding of its financial position, changes to its
capital structure and its credit assessment. Investable cashflow is
defined as net cash provided by operating activities less
maintenance/normative capex, and the Company thus believes that it
represents a cashflow that is available for allocation at
management’s discretion. The Company’s guidance as to additional
EBITDA estimated to be generated from certain projects and with
respect to working capital for the fourth quarter of 2024, is based
on the same accounting policies as those applied in the Company’s
financial statements prepared in accordance with IFRS.
ArcelorMittal is unable to reconcile, without unreasonable effort,
such guidance to the most directly comparable IFRS financial
measure, due to the uncertainty and inherent difficulty of
predicting the occurrence and the financial impact of items
impacting comparability. For the same reasons, ArcelorMittal is
unable to address the significance of the unavailable information.
Non-GAAP financial/alternative performance measures should be read
in conjunction with, and not as an alternative to, ArcelorMittal's
financial information prepared in accordance with IFRS. Comparable
IFRS measures and reconciliations of non-GAAP financial/alternative
performance measures are presented herein.
About ArcelorMittal
ArcelorMittal is one of the world's leading steel and mining
companies, with a presence in 60 countries and primary steelmaking
facilities in 15 countries. In 2023, ArcelorMittal had revenues of
$68.3 billion and crude steel production of 58.1 million metric
tonnes, while iron ore production reached 42.0 million metric
tonnes.
Our goal is to help build a better world with smarter steels.
Steels made using innovative processes which use less energy, emit
significantly less carbon and reduce costs. Steels that are
cleaner, stronger and reusable. Steels for electric vehicles and
renewable energy infrastructure that will support societies as they
transform through this century. With steel at our core, our
inventive people and an entrepreneurial culture at heart, we will
support the world in making that change. This is what we believe it
takes to be the steel company of the future.
ArcelorMittal is listed on the stock exchanges of New York (MT),
Amsterdam (MT), Paris (MT), Luxembourg (MT) and on the Spanish
stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS).
For more information about ArcelorMittal please visit:
https://corporate.arcelormittal.com/
Enquiries
ArcelorMittal investor relations: +44 207 543 1128; Retail: +44
207 543 1156; SRI: +44 207 543 1156 and Bonds/credit: +33 1 71 92
10 26.
ArcelorMittal corporate communications (e-mail:
press@arcelormittal.com) +44 207 629 7988. Contact: Paul Weigh +44
203 214 2419
- 3Q24 Earnings release FINAL.pdf
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