ArcelorMittal’s Q1 2016 Earnings Preview: Cost Reduction Initiatives To Offset Impact Of Competition From Imported Steels On Earnings
We expect ArcelorMittal’s Q1 results to be boosted by a series of steps which are expected to benefit the company’s EBITDA in 2016 by $1 billion relative to its Q4 2015 annual run rate level. These steps include the ramp up of output from the company’s Calvert steel plant (which produces steels used in automotive applications) and improved value-added product mix, a further 10% year-over-year improvement in iron ore mining cash costs, and the impact of cost rationalization initiatives implemented at the company’s NAFTA and Europe steel operations. The impact of these EBITDA-boosting initiatives will be partially offset by the impact of competition from cheap steel imports, which is likely to negatively impact shipments and pricing for the NAFTA and the Europe steel operations (as reflected in our estimates for the same).
Have more questions about ArcelorMittal? See the links below.
- What Is ArcelorMittal’s Revenue And EBITDA Breakdown?
- What Is ArcelorMittal’s Fundamental Value Based On 2015 Results?
- By What Percentage Did ArcelorMittal’s Revenue & EBITDA Change In The Last 4 Years?
- How Has ArcelorMittal’s Revenue Composition Changed Over The Last 4 Years?
- By What Percentage Can ArcelorMittal’s Revenue & EBITDA Grow In The Next 3 Years?
- How Will ArcelorMittal’s Revenue Composition Change by 2020?
- ArcelorMittal: A Look Back At The Year 2015
- With Steel Facing Competition From Aluminum In Automotive Applications, By What Percentage Will ArcelorMittal’s Automotive Steel Shipments Change By 2020?
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