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Business News/ Markets / Stock Markets/  ArcelorMittal reports 73% fall in net income in Q1 2023
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ArcelorMittal reports 73% fall in net income in Q1 2023

The company's EBITDA during Q1 2023 was $341 million, up from $162 million in Q4 2022 due to higher steel shipments, higher average steel selling prices, and lower costs, including energy costs

Aditya Mittal, ArcelorMittal CEO, said market conditions improved as anticipated in the first quarter, with the end of customer destocking supporting apparent steel consumption growth and a rebound in steel spreads.Premium
Aditya Mittal, ArcelorMittal CEO, said market conditions improved as anticipated in the first quarter, with the end of customer destocking supporting apparent steel consumption growth and a rebound in steel spreads.

MUMBAI : Luxembourg-based global steel giant, ArcelorMittal, announced on Thursday that its net income fell by 73% to $1.096 billion in the first quarter that ended on March 31, 2023. The company's net income for the same period in the previous year was $4.125 billion. 

ArcelorMittal is the largest integrated steel and mining company in the world, and its fiscal year runs from January to December. Along with Nippon Steel of Japan, the company owns and operates ArcelorMittal Mittal Nippon Steel (AMNS) India, a joint venture with a ratio of 60:40. In Q1 2023, AMNS India's crude steel production increased by 8.6% to 1.8 million tonnes compared to 1.6 million tonnes in Q4 2022. Production was up 2.0% compared to Q1 2022. 

 In the same period, AMNS India's steel shipments increased by 14.9% to 1.8 million tonnes compared to 1.6 million tonnes in Q4 2022, and were up 5.7% compared to 1.7 million tonnes in Q1 2022.  

The company's EBITDA during Q1 2023 was $341 million, up from $162 million in Q4 2022 due to higher steel shipments, higher average steel selling prices, and lower costs, including energy costs. However, EBITDA was down from $470 million in Q1 2022 due to lower prices, offset in part by higher steel shipments. 

As of March 31, 2023, ArcelorMittal had a net debt of $5.2 billion, up from $3.2 billion as of March 31, 2022. The company's capex spending of $0.9 billion in Q1 2023 is in line with its full-year guidance, which falls within the range of $4.5 billion to $5 billion. 

Aditya Mittal, ArcelorMittal Chief Executive Officer, said, “Market conditions improved as anticipated in the first quarter, with the end of customer destocking supporting apparent steel consumption growth and a rebound in steel spreads. This, alongside better general economic sentiment, resulted in good growth in first quarter profits as well as higher EBITDA per tonne. The improvements we have seen in market conditions are not yet fully reflected in our results due to pricing lags, and we expect a further increase in profitability in the second quarter." 

 “The first quarter has unfolded as we expected. Geopolitical and economic uncertainty remains, but ArcelorMittal continues to demonstrate its ability to perform in all market conditions which bodes well for the remainder of this year," Aditya Mittal said. 

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Mayur Bhalerao
"Mayur spearheads data-driven reporting on IPOs for Mint. He also covers market trends, and corporate announcements to ensure comprehensive coverage of the financial landscape. Mayur believes in harnessing the power of Bloomberg Terminal and Capital Line to extract and disseminate critical financial data to cross-functional teams within the newsroom and beyond. disseminate critical financial data to cross-functional teams within the newsroom and beyond."
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Published: 04 May 2023, 10:43 PM IST
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