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.
Read More: Surge in steel demand: Mexico records a 21.8% increase in consumption for September
Vietnam Steel by Hoa Sen Group
