ArcelorMittal on Thursday reported a decline of more than 78 percent in its net income to $993 million for the September quarter on low demand and higher energy costs. The global steel giant follows January-December fiscal year.
The sales in the quarter under review fell to $19 billion, down six percent from $20.2 billion in the year-ago period. The company said that lower steel shipments impacted the sales. Total steel shipments in the quarter stood at 13.36 million tonnes, down from 14.6 MT in the previous fiscal, largely reflecting weaker demand in Europe.
ArcelorMittal 's gross debt increased to $9 billion as of September 2022. It was $8.2 billion in September 2021. Chief Executive Officer Aditya Mittal said that the strong market conditions enjoyed for much of the past two years deteriorated in the third quarter as seasonally lower shipments, a reduction in exceptional price levels, destocking and higher energy costs combined to put profits under pressure.
"The business responded quickly to the changing environment, cutting higher cost capacity to manage addressable demand and reduce fixed costs, and reducing European gas consumption by 30 percent," he said.
The EBIDTA was down due to lower selling prices, higher coal costs and lower pellet sales contribution, following the introduction of the export duty during the prior quarter, offset in part by higher steel shipments, as per the company.
The short-term outlook for the industry remains uncertain. However, supported by a strong balance sheet, ArcelorMittal will continue to focus on executing its strategy to ensure its long-term sector leadership, as well as deliver sustainable investor returns.
Sharing the details of its JV company in India, ArcelorMittal said AMNS India posted earnings before interest, taxes, depreciation, and amortization (EBITDA) of USD 204 million during the quarter under review against USD 551 million a year ago.
The JV's crude steel production in Q3 2022 at 1.7 MT was 12.1 percent lower compared to 1.9 MT in the third quarter of 2021 on account of maintenance. Steel shipments at 1.6 MT were also lower than 1.8 MT in July-September 2021.
With inputs from PTI
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