ArcelorMittal posts loss for 2019

Luxembourg-based steelmaker ArcelorMittal has cited “a challenging market backdrop in 2019” a the reason for a net loss of more than $2.4 billion in 2019. More than $1.8 billion of that loss occurred in the fourth quarter.

In announcing its year-end and fourth-quarter 2019 results, the company also expressed some optimism for 2020, writing, “There are signs that the real demand slowdown is beginning to stabilize, and the supportive inventory environment means that we expect apparent steel consumption in our core markets to grow in 2020.”

ArcelorMittal Chairman and CEO Lakshmi N. Mittal remarks, “2019 was a very tough year, clearly reflected in our significantly reduced profitability. However, our cash generation remained strong, helping to reduce net debt to the lowest ever level.”

The company’s 2019 results include financials related to its acquisition of Essar Steel India, in partnership with Japan-based Nippon Steel.

Looking ahead to 2020, Mittal says, “Although market conditions remain challenging, there are encouraging early signs of improvement, particularly in our core markets of the United States, Europe and Brazil. With inventory levels having reached a very low level following a period of de-stocking, we are seeing customers return to the market, supporting an improved pricing environment.”

ArcelorMittal describes itself as a steel-producing and mining company with a presence in 60 countries and an industrial footprint in 18 nations. The company specializes in integrated steelmaking using basic oxygen furnace (BOF) technology. The company produces more than 80 million tons of steel annually, using ferrous scrap as approximately 12 percent of its feedstock, causing ArcelorMittal to bill itself as “the largest recycler of scrap steel in the world.”