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08 Feb, 2024 15:01

ArcelorMittal shares gain on positive outlook after tough year

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Shares in steel production giant ArcelorMittal gained in Amsterdam after the company pointed to a "more constructive" outlook for the industry following a challenging year in which profits shrunk by 90%.

The company reported a net profit of just $0.9bn for the 2023 financial year, down from $9.3bn in 2022, after swinging to a net loss of $3.0bn in the fourth quarter, compared a $0.26bn profit a year earlier.

The last three months of the year were hit by a $2.4bn negative impact related to the disposal of the Kazakhstan operations in December – which followed the fatal Kostenko mine accident in October – as well as a $1.4bn impairment from its investment in Italian steel company Acciaierie d'Italia following downward revisions to the expected future cash flows.

Without these one-off charges, full-year net profit would have been $4.9bn in 2023, down from $10.6bn in 2022.

Fourth-quarter sales totalled $14.6bn, taking full-year revenues to $68.3bn, down from $79.4bn previously, as stable shipments were offset by a 13.5% slump in the average steel selling price.

Nevertheless, following a period of so-called "optimisation" and strategic investments, ArcelorMittal said it is now "on the cusp of a step change in profitability".

Chief executive Aditya Mittal said: "Our [financial] results for the full year reflect the benefits of the structural improvements we have made to our cost base, asset portfolio and balance sheet in recent years."

Looking ahead, he said "there are early signs of a more constructive industry backdrop". He continued: "This, alongside the progress we are making with our portfolio of strategic growth projects - several of which will complete this year - means the company will continue to take important steps forward in its drive to be a stronger, more profitable, and of course safer, company."

The stock was up 3.8% at €25.13 by 1538 CET.


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Pilling and Co Stockbrokers Ltd. is not responsible for the content or accuracy of third party news articles and we may not share the views of the author or publisher.

We provide third party news for your convenience and information only and make no representation or endorsement whatsoever and hereby exclude all liability for any loss or damage that may be incurred by you as a result of your access or use. Please note that third party content may be subject to terms and conditions imposed by the third party owner of that content.

The value of investments can fall and you may get back less than you invested.