ArcelorMittal Q1 Results: Company reports over 50% fall in net income
ArcelorMittal Q1 Results: Global steel giant ArcelorMittal posted over 50 per cent decline in its net income at USD 1,860 million in the April-June quarter.
ArcelorMittal Q1 Results: Global steel giant ArcelorMittal on Thursday posted over 50 per cent decline in its net income at USD 1,860 million in the April-June quarter. The company had posted a net income of USD 3,923 million in the corresponding period of last year. The Luxembourg-headquartered integrated steel and mining company follows the January-December fiscal year.
In a statement, ArcelorMittal said it has "recorded net income in 2Q 2023 of USD 1,860 million as compared to USD 1,096 million in 1Q 2023 and USD 3,923 million for 2Q 2022".
ArcelorMittal's net income for January-June or first half of 2023 was also down manifold at USD 2,956 million as compared to USD 8,048 million in 1H 2022.
Total steel shipments in the second quarter (April-June) of 2023 were 1.2 per cent lower as compared with 14.4 MT in 2Q 2022, and 1.7 per cent lower from 14.5MT in the first quarter of this year.
ArcelorMittal Chief Executive Officer (CEO) Aditya Mittal said: "We have delivered a strong set of financials in the first half of the year, which reflect the improved market conditions and also the positive impact of recent strategic acquisitions. We are making further strategic progress on our decarbonization agenda. Encouragingly, we have now received funding approval from the European Commission for our transformation projects in Belgium, Spain and France."
Meanwhile, organic growth projects that will "enhance our ability to produce higher added-value products in high-growth markets as well as investments in our lower-carbon supply chains" are starting to demonstrate their potential, he said.
ArcelorMittal Nippon Steel (AMNS) India, the joint venture company of ArcelorMittal in India, has reported an EBITDA of USD 563 million during Q2, higher as compared to USD 365 million in 2Q 2022, due to higher steel shipments and lower costs.
The crude steel production from the 60:40 JV with Japan's Nippon Steel in 2Q 2023 was stable at 1.8 MT as compared to 1Q 2023 (following a 85-day corex furnace shutdown offset by higher production from directly reduced iron (DRI) route) and 7.4 per cent higher as compared to 2Q 2022.
Steel shipments in 2Q 2023 were 8.3 per cent lower at 1.7 MT as compared to 1.8 MT in 1Q 2023, primarily due to planned maintenance of HSM (hot strip mill) and 11.1 per cent higher as compared to 1.5 MT in 2Q 2022.
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