ArcelorMittal reports return to operating profit

Luxembourg-based ArcelorMittal has reported a $780 million operating profit in the third quarter of 2020, rebounding from a $253 million loss the previous quarter. The company’s crude steel output rose 19.4 percent from 14.4 million metric tons in the second quarter to 17.2 million metric tons in the third.

“The third quarter marked an improved operating performance for the group, with steel markets recovering gradually from the very challenging second quarter after the ending of lockdowns,” states Lakshmi N. Mittal, ArcelorMittal chair and CEO.

He adds, “All steel segments saw improved demand, with Brazil and ACIS (Africa and Commonwealth of Independent States) showing particularly encouraging profitability improvement. Our mining segment also delivered a strong performance taking advantage of the higher iron-ore price environment and outperforming production targets.”

Despite the return to operating profitability, ArcelorMittal nonetheless suffered a $261 million net loss, or 21 cents per share, citing debt reduction measures, foreign exchange impacts and the “partial reversal of previously recorded impairment charges following the announced sale of ArcelorMittal USA.”

The company says it addressed a “strategic repositioning of [its] North American platform” in the third quarter, which included the sale of its integrated mills in the United States to Cleveland-Cliffs Co. ArcelorMittal says it “maintains a strong presence in the [North American] market with cost-competitive assets in Canada and Mexico [and] state-of-the art finishing assets” in Calvert, Alabama, including the company’s “announced intention” to build an electric arc furnace (EAF) mill in Calvert.

Adds Lakshmi Mittal, “During the quarter we also announced a Group 2050 net-zero target and the launch of a green steel product for the first time. We remain hopeful that we will start to see the introduction of the policy required to unlock potential and deliver real progress in the coming years.”