Luxembourg-based ArcelorMittal, the world's leading steelmaker, has disclosed its financial performance for the third quarter and the initial nine months of the current year, revealing a nuanced picture of challenges and optimism.
In Q3 2023, ArcelorMittal recorded a net profit of $929 million, a slight dip from the $933 million reported in the same quarter of the previous year. However, the company faced a more substantial challenge as sales revenues for the quarter plummeted by 12.4 percent year-on-year to $16.61 billion. This decline was attributed to lower average steel selling prices and reduced steel shipment volumes. EBITDA for the third quarter stood at $1.86 billion, down from $2.66 billion in the corresponding period of the previous year.
Zooming out to the January-September period, ArcelorMittal reported a net profit of $3.88 billion, marking a 57 percent decrease, while sales revenues totaled $53.72 billion, a 14.6 percent decline, both compared to the same period last year. EBITDA for the first nine months was $6.29 billion, down from $12.9 billion in the previous year.
Amidst these financial challenges, ArcelorMittal's crude steel production and iron ore production for the first nine months decreased by 3 percent and 7.5 percent, respectively, year on year. Total steel shipments during this period amounted to 42.3 million metric tons, reflecting a 2.3 percent decline.
The European segment faced a notable decline, with crude steel production decreasing by 11.0 percent year on year to 22.19 million metric tons in the first nine months.
Despite these challenges, ArcelorMittal maintains a positive outlook on the medium and long-term demand for steel. The company emphasized that its decarbonization projects are progressing, and its XCarb products are gaining commercial momentum, signaling confidence in the future of the steel industry.
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