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ArcelorMittal Reaffirms Q3 EBITDA Guidance
09/20/2010 - ArcelorMittal Chairman and CEO Lakshmi Mittal reaffirmed at a recent investor day the company’s previously announced EBITDA guidance for the third quarter, between US$2.1 billion and US$2.5 billion.
ArcelorMittal Chairman and CEO Lakshmi Mittal reaffirmed at a recent investor day the company’s previously announced EBITDA guidance for the third quarter, between US$2.1 billion and US$2.5 billion.
The company’s Q2 earnings statement released in July posted a third-quarter outlook for the three months ending September 30, 2010, including EBITDA expected to be between $2.1 billion and $2.5 billion. EBITDA was $3.0 billion in Q2 2010, up 59% compared to Q1 2010.
Other Q3 guidance offered in the Q2 statement included:
- Shipments expected to be lower and capacity utilization expected to decline to approximately 70% due to seasonal slowdown
- Average selling prices expected to remain stable and operating costs expected to increase compared to the second quarter of 2010 due largely to higher raw material prices.
“The improved performance in the second quarter is in line with our expectations and reflects the continued slow and progressive recovery,” said Lakshmi N. Mittal, Chairman and CEO, ArcelorMittal, in the company’s original third-quarter guidance. “Although the third quarter will be impacted by a combination of seasonal factors and the effects of the economic slowdown in China, underlying demand continues to show improvement. The challenge for the second half of the year will be to pass on the full extent of cost increases to our customers.
“Separately, we are assessing the spin-off of our stainless division from the remainder of the group,” Mittal continued, at the time of the second-quarter earnings statement. “We have confidence in the future of the stainless business and believe that the creation of a separately focused company will create additional value for all shareholders.”
With operations in more than 60 countries and an industrial presence in more than 20 countries spanning four continents, ArcelorMittal leads major global steel markets, including automotive, construction, household appliances and packaging, with leading R&D and technology, as well as sizeable captive supplies of raw materials and outstanding distribution networks. In 2009, ArcelorMittal had revenues of $65.1 billion and crude steel production of 73.2 million tonnes, representing approximately 8% of world steel output.
