ArcelorMittal’s Q3 2016 Earnings Preview: Cost Reduction Initiatives And Improved Business Conditions In The U.S. To Boost Results

November 7th, 2016 by Trefis Team
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We expect ArcelorMittal to report an improvement in its Q3 2016 results, driven by the company’s cost reduction initiatives and an improved steel pricing environment in the U.S. A combination of ArcelorMittal’s company-wide cost reduction initiatives,  the ramp up of production from the company’s Calvert steel plant, and an improved product mix is expected to boost the company’s EBITDA by $1 billion in 2016, as compared to the Q4 2015 annual run rate. [1] Moreover, the company’s NAFTA division is expected to benefit from an improvement in steel prices in the U.S. post the imposition of anti-dumping and countervailing duties by U.S. authorities on steel imports from a number of countries. However, weakness in steel prices in the company’s major international markets such as Brazil (which is in the midst of a recession) and Europe will negatively impact the company’s results. The following tables summarize our expectations for ArcelorMittal’s Q3 results.

MT Q3 2016 Pre-Earnings

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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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Notes:
  1. ArcelorMittal’s Q4 2015 Earnings Q & A Transcript, ArcelorMittal Website [↩]