ArcelorMittal Posts $2,966 Million Net Loss In Dec Quarter

Global steel giant ArcelorMittal on Thursday posted a net loss of $2,966 million during the December quarter, affected by lower steel prices.

The Luxembourg-based company posted a net income of $261 million in the year-ago period.

Its steel production increased marginally to 13.7 MT from 13.2 MT a year ago.

During the December quarter of 2023, the total steel shipments stood at 13.3 MT as against 12.6 MT in 2022.

The company follows the January-December financial year.

Sales in 4Q 2023 were lower at $14.6 billion compared to $16.9 billion in 4Q 2022, primarily due to lower average steel selling prices.

"Our results for the full year reflect the benefits of the structural improvements we have made to our cost base, asset portfolio and balance sheet in recent years. Despite the operating environment becoming increasingly challenging as the year progressed, our profitability per tonne is healthy and well above long-term averages," Aditya Mittal, Chief Executive Officer of ArcelorMittal, said.

For the entire 2023, ArcelorMittal's net income was $919 million, down multi-fold over $9,302 million for 12 months in 2022.

Last year, the company's crude steel production fell to 58.1 MT from 59 MT in 2022.

Its sales declined 14.5% to $68.3 billion in 2023 compared to $79.8 billion a year ago, primarily due to 13.5% lower average steel selling prices as shipments were relatively stable.

In India, ArcelorMittal along with Nippon Steel of Japan, owns and operates the 60:40 JV company, ArcelorMittal Mittal Nippon Steel India.

AMNS India's crude steel production in 4Q 2023 increased to 1.94 MT as against 1.62 MT in 4Q 2022.

Steel shipments were at 1.86 MT in 4Q 2023.

During the same period, its EBITDA was higher at $399 million over $162 million in 4Q 2022. "It (EBITDA) was 6.4% lower as compared to $533 million in 3Q 2023, including a lower impact from natural gas hedges."