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ArcelorMittal's Earnings Top Estimates, Revenues Lag in Q3

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ArcelorMittal (MT - Free Report) posted adjusted earnings of $488 million or 63 cents per share for the third quarter of 2024 compared with $929 million or $1.11 per share in the year-ago quarter. The figure topped the Zacks Consensus Estimate of 58 cents. 

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Total sales decreased 8.5% year over year to $15,196 million in the quarter. The figure missed the Zacks Consensus Estimate of $15,760.4 million. The decline was due to lower average selling prices across segments.

ArcelorMittal Price, Consensus and EPS Surprise

ArcelorMittal Price, Consensus and EPS Surprise

ArcelorMittal price-consensus-eps-surprise-chart | ArcelorMittal Quote

MT’s Segment Highlights

North America: Sales declined 15.6% year over year to $2.8 billion in the reported quarter. Crude steel production declined 22.1% to 1.652 million metric tons. Steel shipments fell around 4% year over year to 2.4 million metric tons. Average steel selling price decreased 8.4% to $955 per ton.

Brazil: Sales decreased 11.1% year over year to $3.2 billion. Crude steel production rose roughly 35% to 3.8 million metric tons. Shipments increased 5.5% year over year to 3.8 million metric tons. Average steel selling price went down 15.5% to $787 per ton.

Europe: Sales decreased 2.7% year over year to $7.1 billion. Crude steel production rose 6.7% to 7.9 million metric tons in the reported quarter. Shipments rose 6.25% year over year to 6.8 million metric tons. Average steel selling price went down 6.6% to $915 per ton.

Mining: Sales declined 19.2% year over year to around $0.6 billion. Iron ore production totaled 6.6 million metric tons, down 1.5% from the year-ago quarter. Iron ore shipments were flat year over year at 6.3 million metric tons.

MT’s Financials

The company generated $2.8 billion in investable cash flow, with $0.6 billion devoted to mergers and acquisitions (M&A), $1.5 billion spent in strategic growth capex projects and $2 billion returned to ArcelorMittal shareholders while maintaining a healthy balance sheet.

MT’s Outlook

The company anticipates capital expenditure for 2024 to remain within the previous view of $4.5 billion to $5 billion. MT’s strategic expansion projects are expected to increase EBITDA and investable cash flow in future periods. ArcelorMittal is optimizing its decarbonization strategy to maintain competitiveness and profitability. Its global asset portfolio positions it to capitalize on the expected growth in steel demand over the medium/long term. The company prioritizes safety, growth projects and shareholder returns while maintaining a strong balance sheet.

MT’s Stock Price Performance

Shares of ArcelorMittal have gained 4.6% in a year compared with a 7.4% decline of the industry.

Zacks Investment Research
Image Source: Zacks Investment Research

MT's Zacks Rank & Other Basic Materials Releases

MT currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

CF Industries Holdings Inc. (CF - Free Report) logged earnings of $1.55 per share for the third quarter, topping the Zacks Consensus Estimate of $1.05. CF anticipates the global supply-demand balance to remain constructive, as inventories are believed to be below average globally while energy spreads remain significant between North America and high-cost production in Europe. 

ICL Group Ltd (ICL - Free Report) recorded adjusted earnings of 11 cents per share for the third quarter, topping the Zacks Consensus Estimate of 8 cents. ICL raised its guidance for full-year 2024.

PPG Industries, Inc. (PPG - Free Report) logged third-quarter adjusted earnings per share of $2.13, missing the Zacks Consensus Estimate of $2.15. PPG anticipates flat organic sales and adjusted earnings per share at the bottom end of the $8.15 to $8.30 range for full-year 2024.


 

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