On February 8, Luxembourg-based steel giant ArcelorMittal, the world’s largest steelmaker by volume and revenue, announced its financial results for the fourth quarter of 2010 and the whole year, posting a net loss in the final quarter, following record net income in the first three quarters of the year. The cost of spinning of its stainless steel unit and higher raw material costs while steel selling prices were generally lower pushed ArcelorMittal into a fourth quarter loss.
ArcelorMittal saw its results drop in the fourth quarter compared to the previous quarter. The company posted a net loss of $780 million in the fourth quarter, down compared to the net income of $1.11 billion in the fourth quarter of 2009 and net income of $1.35 billion in the third quarter of 2010. The company's sales revenues increased to $20.7 billion from $17.43 billion in the same period of 2009 and $19.74 billion recorded in the previous quarter. ArcelorMittal’s earnings before interest, taxes, depreciation and amortization (EBITDA) of $1.85 billion for the fourth quarter were down from $2.06 billion in the same quarter of 2009 and the $2.16 billion recorded in the third quarter of 2010.
In 2010, the company’s results were dramatically up compared with 2009. ArcelorMittal posted a net income of $2.92 billion, substantially up compared to the net income of $157 million in 2009. The company's sales revenues rose to $78.03 billion in 2010 from $61.02 billion in 2009. ArcelorMittal’s EBITDA of $8.53 billion for 2010 increased from $5.6 billion 2009.
22 percent increase in 2010 shipments
Total steel shipments for the three months ended December 31, 2010 were 21.1 million mt as compared with 20.5 million mt for the three months ended September 30, 2010, and 19.5 million mt for the three months ended December 31, 2009.
Total steel shipments for the twelve months ended December 31, 2010 increased by 22 percent to 85 million metric mt as compared with 69.6 million metric mt for the twelve months ended December 31, 2009.
As a result of the successful spin-off of stainless steel business (Aperam) following shareholders’ approval on January 25, 2011, ArcelorMittal said that stainless steel results for the fourth quarter of 2010 are recorded as discontinued operations.
Commenting on the results, Mr. Lakshmi N. Mittal, chairman and CEO of ArcelorMittal, said, “Although 2010 continued to be a challenging year, as anticipated we saw a slow and progressive recovery which enabled us to deliver a substantially improved performance compared with 2009. The gradual underlying demand recovery continues and we expect 2011 to be stronger than 2010.”
Total steel shipments for the three months ended December 31, 2010 were 21.1 million mt as compared with 20.5 million mt for the three months ended September 30, 2010, and 19.5 million mt for the three months ended December 31, 2009.
Total steel shipments for the twelve months ended December 31, 2010 increased by 22 percent to 85 million metric mt as compared with 69.6 million metric mt for the twelve months ended December 31, 2009.
As a result of the successful spin-off of stainless steel business (Aperam) following shareholders’ approval on January 25, 2011, ArcelorMittal said that stainless steel results for the fourth quarter of 2010 are recorded as discontinued operations.
Commenting on the results, Mr. Lakshmi N. Mittal, chairman and CEO of ArcelorMittal, said, “Although 2010 continued to be a challenging year, as anticipated we saw a slow and progressive recovery which enabled us to deliver a substantially improved performance compared with 2009. The gradual underlying demand recovery continues and we expect 2011 to be stronger than 2010.”
First quarter 2011 EBITDA is expected to be approximately $2-2.5 billion, ArcelorMittal said on the outlook.