ArcelorMittal’s Q1 2016 Earnings Review: Improved Performance Of NAFTA Division Drives Improvement In Results Amidst Challenging Business Conditions

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Arcelor Mittal

ArcelorMittal reported a net loss of $0.23 per share in Q1 2016, which is an improvement over the results in the corresponding period of last year. The improvement in results was driven by the improved performance of the NAFTA division, with the ramp up of output from the company’s Calvert steel plant (which produces steels used in automotive applications) and cost reduction initiatives boosting the division’s profitability. However, competition from cheap imported steels remains an area of concern for the company, as reflected in the decline in realized prices for the NAFTA and Europe divisions, which negatively impacted the results of these divisions. Further, weak demand for steel in Brazil, which is in the midst of a recession, adversely affected the results of the Brazil division.

MT Q1 Earnings 1

MT Q1 Earnings 2

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for ArcelorMittal

 

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