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Steel giant ArcelorMittal (MT - Analyst Report) has announced that it has completed the first installment of its stake sale in ArcelorMittal Mines Canada. The sale was a part of the previously announced agreement, pursuant to which ArcelorMittal`s wholly-owned subsidiary ArcelorMittal Mines Canada (AMMC) and a consortium led by POSCO and China Steel Corporation (CSC) entered into a joint venture partnership that will own ArcelorMittal`s Labrador Trough iron ore mining and infrastructure assets.

The consortium will acquire a 15% interest in the joint venture for total consideration of $1,100 million in cash, with AMMC and its affiliates retaining 85% interest.

With the payment of the first installment, the consortium acquired an 11.05% interest in the joint venture for total consideration of $810 million in cash, with ArcelorMittal Mines Canada retaining an 88.95% interest in the joint venture.

The second installment is expected to be completed by the second quarter of 2013 and will raise the consortium’s interest in the joint venture to 15%.

In Feb 2012, ArcelorMittal posted a net loss of $4 billion or $2.58 per share in the fourth quarter of 2012 compared with a net loss of $1 billion or 65 cents per share a year ago. The bottom line was hurt by hefty charges and challenging economic conditions in Europe where the demand for steel dropped 8.8% last year.

Adjusted loss of $1.47 cents a share for the quarter exceeded the Zacks Consensus Estimate of a loss of 15 cents per share. The adjusted loss excludes $4.8 billion of goodwill impairment charges associated with the company’s European businesses and $192 million of restructuring charges.

Revenues declined 14% year over year to $19,309 million in the reported quarter, trailing the Zacks Consensus Estimate of $20,168 million. Sales also declined 2.1% on a sequential basis due to lower average steel selling prices. Shipments declined 2.9% to 20 million metric tons in the quarter.

ArcelorMittal currently retains Zacks Rank #5 (Strong Sell).

Other steel producers having a favorable Zacks Rank are Gibraltar Industries Inc. (ROCK - Analyst Report), Shilo Industries Inc. and Companhia Siderurgica Nacional (SID - Analyst Report). While Gibraltar and Shilo Industries hold a Zacks Rank #1 (Strong Buy), Companhia Siderurgica has a Zacks Rank #2 (Buy).

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