Photo courtesy of ArcelorMittal.
Luxembourg-based steel producer ArcelorMittal says it enjoyed “improved operating results” in the third quarter of 2021, even though it shipped less steel than projected because of automotive order cancellations.
Despite the impacts of the global microchip shortage on automotive production, ArcelorMittal says its third-quarter operating income of $5.3 billion compared with a figure of $4.4 billion in the prior quarter. The steelmaker says its earnings before interest, taxes, depreciation and amortization (EBITDA) of $6.1 billion in the most recent quarter represented “the strongest quarter since 2008” and was 19.9 percent higher than in the prior quarter.
“Our third-quarter results were supported by the continuing strong price environment, resulting in the highest net income and lowest net debt since 2008,” says ArcelorMittal CEO Aditya Mittal. The CEO also praised the company’s safety record during the quarter and its carbon emissions reduction efforts.
In North America, ArcelorMittal’s crude steel production decreased by 12.2 percent year on year, with the company citing the sale of its former mills to Cleveland-Cliffs in December of last year and “operational disruptions (including the impact of hurricane Ida) in Mexico.”
Setting aside 2020 output at the mills sold to Cleveland-Cliffs, ArcelorMittal says its crude steel production in North America declined just 0.5 year on year.
Looking ahead, Mittal comments, “The outlook remains positive: underlying demand is expected to continue to improve; and, although marginally off the recent record highs, steel prices remain at elevated levels, something which will be reflected in the annual contracts for 2022.”