ArcelorMittal Reports Third Quarter 2024 Financial Results
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ArcelorMittal Reports Third Quarter 2024 Financial Results
ArcelorMittal, the world's leading steel and mining company, today announced its financial results for the third quarter ending September 30, 2024.
Key Financial Metrics
| Metric | 3Q 2024 | 2Q 2024 | Comparison |
|---|---|---|---|
| Total Revenue | $15.2 billion | $16.2 billion | -6.5% QoQ |
| Operating Income | $0.7 billion | $1.0 billion | -30% QoQ |
| EBITDA | $1.6 billion | $1.9 billion | -15.1% QoQ |
| Net Income | $287 million | $504 million | -43% QoQ |
| Earnings Per Share (EPS) | $0.37 | $0.63 | -41.3% QoQ |
| Adjusted Net Income | $488 million | $677 million | -27.9% QoQ |
| Adjusted Earnings Per Share | $0.63 | $0.85 | -25.9% QoQ |
Interpretation: The company experienced declines across key financial metrics, reflecting challenges in the steel market and operational hurdles. Revenue and net income saw significant drops quarter-over-quarter due to lower steel prices, decreased shipments, and certain impairments and restructuring costs.
Revenue Performance by Segment
| Segment | 3Q 2024 Revenue | 2Q 2024 Revenue | Comparison |
|---|---|---|---|
| North America | $2.8 billion | $3.2 billion | -12.7% |
| Brazil | $3.2 billion | $3.2 billion | Stable |
| Europe | $7.1 billion | $7.8 billion | -8.7% |
| India and JVs | $1.5 billion | $1.6 billion | -2.8% |
| Sustainable Solutions | $2.5 billion | $2.9 billion | -12.1% |
| Mining | $589 million | $641 million | -8.0% |
Interpretation: Revenue across most segments declined, with notable drops in North America and Europe due to lower steel selling prices and shipments. Brazil remained stable with a positive price-cost effect offsetting lower prices.
Key Developments and Operational Highlights
- Completion of a comprehensive safety audit; six recommendations to be implemented to improve safety.
- Successful reinvestment of $2.8 billion cash flow over the past 12 months into strategic ventures and shareholder returns.
- Ongoing acquisition deals and share buyback initiatives, with 1.5% of shares repurchased in 3Q 2024.
Executive Commentary
Aditya Mittal, CEO of ArcelorMittal, commented on the completion of safety audits and the resilient performance amidst a challenging market. He highlighted ongoing concerns over increased imports affecting European steel prices and stressed the need for robust trade measures. The company's strategic growth projects so far report positive advancements, particularly renewables operations in India and Brazil.
Shareholder Returns
- Share buyback continued, reducing fully diluted share count by 37% since September 2020.
- No specific dividend announcement was made in this report.
Forward Guidance
ArcelorMittal maintains a positive outlook for free cash flow in 2024, expecting strategic growth projects to drive future EBITDA increases. They expressed optimism in improving market conditions in the latter half of 2024 compared to the previous year.
Stock Price Movement
Following the earnings release, ArcelorMittal's stock price saw a slight increase of approximately 0.95%.
In summary, ArcelorMittal faces headwinds in the market, but strategic initiatives and cash flow management are poised to support the company’s resilience and shareholder value moving forward.
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