ArcelorMittal returns to profit in Q4, expects better steel demand in 2021

ArcelorMittal returns to profit in Q4, expects better steel demand in 2021

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Luxembourg-based ArcelorMittal, the world’s largest steelmaker, has announced its financial results for the fourth quarter and the full year of 2020.

In the fourth quarter this year, ArcelorMittal posted a net profit of $1.21 billion, as compared to a net loss in the third quarter of $261 million. The company’s sales revenues in the given period last year increased by 6.9 percent to $14.18 billion as compared with $13.26 billion for the third quarter. The company registered an EBITDA of $1.73 billion in the fourth quarter, up 91.5 percent quarter on quarter. 

In 2020, ArcelorMittal posted a net loss of $733 million, as compared to a net loss in 2019 of $2.45 billion. The company’s sales revenues last year decreased by 24.5 percent to $53.27 billion as compared to 2019. ArcelorMittal registered an EBITDA of $4.30 billion in the given period, down 17.1 percent year on year.

ArcelorMittal’s crude steel production decreased by 20.4 percent to 71.5 million mt in 2020, while its iron ore production increased by 1.6 percent to 58 million mt, both year on year. The company’s total steel shipments in 2020 totaled 69.1 million mt, down by 18.2 percent year on year, primarily due to the impact of the coronavirus pandemic.    

The European segment’s crude steel production increased by 15.2 percent year on year to 9.1 million mt in the fourth quarter of 2020 as demand and activity levels gradually improved, particularly automotive and manufacturing activity. Although the company has restarted capacity, some steelmaking capacity during the quarter remained idled, including a blast furnace at Ghent, Belgium that is due to restart in mid-February this year following a planned major relining.

“2020 was a year of enormous challenge as countries, societies and businesses across the world grappled with the disruption caused by the Covid-19 pandemic. The impact on the steel industry was significant, but I am very proud of the resilience and enterprise shown by our people across the business which enabled ArcelorMittal to deliver a solid operating performance in times of adversity,” Lakshmi N. Mittal, ArcelorMittal chairman and CEO, said.

ArcelorMittal expects global apparent steel consumption in 2021 to rise between 4.5 percent and 5.5 percent based on the current economic outlook, while demand conditions are expected to improve this year.

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