ArcelorMittal Q1 Results: Net Income Jumps Over 80% To $4,125 Million; Output Slips To 16.3 MT
ArcelorMittal's net debt declined by $878 million to $3.2 billion as of March 31, 2022 as compared to $5.9 billion on March 31, 2021
New Delhi: Global steel giant ArcelorMittal on Thursday posted 80.52 per cent growth in net income at $4,125 million (about Rs 31,350 crore) for the first quarter ended March 31, 2022.
It had posted a net income of $2,285 million for the year-ago quarter, the company said in a statement.
"ArcelorMittal recorded net income for 1Q 2022 of $4,125 million as compared to...a net income of $2,285 million for 1Q 2021," the Luxembourg-based firm said.
ArcelorMittal is the world's largest integrated steel and mining company. It follows January-December fiscal year.
The company further said its net debt declined by $878 million to $3.2 billion as of March 31, 2022 as compared to $5.9 billion on March 31, 2021.
Its capex guidance for financial year 2022 remains unchanged at $4.5 billion, of which $529 million is for Q1 2022.
Strategic capex envelope (including renewables project in India) increased to $3.65 billion to be spent between 2021-2024, of which $0.25 billion has been spent to date.
"Our first quarter performance was overshadowed by the war in Ukraine. Our focus has been on providing support to our 26,000 colleagues and their communities at a time of tragedy and hardship," Aditya Mittal, ArcelorMittal Chief Executive Officer, said.
Notwithstanding this backdrop, further aggravated by rising inflationary pressures across the world, ArcelorMittal produced a strong first quarter performance. This is a testimony to the resilience of the company's business model, characterized by diversity of geography, product category and vertical integration, he said.
According to the company statement, its crude steel production during March quarter fell to 16.3 million tonne (MT) from 17.6 MT in the same period in 2021.
Sales in Q1 2022 were $21.8 billion as compared to $16.2 billion in the year-ago period.
Total steel shipments in Q1 2022 were 15.3 MT, lower than 16.5 MT in Q1 2021.
ArcelorMittal, which has presence in about 60 countries said, at the onset of the war in Ukraine, it had announced suspension of operations in the war-torn country to protect its people and assets.
"Since then we have slowly restarted operations, and are currently operating one of the three blast furnaces." The pellet plant project in Ukraine has been temporarily suspended.
Its shipments have also been impacted by the ongoing war between Ukraine and Russia, the company said.
ArcelorMittal has been actively supporting the humanitarian relief efforts in Ukraine with $7.6 million donated so far.
ArcelorMittal Kryvyi Rih made a $1.0 million donation to humanitarian relief efforts in the city of Kryvyi Rih for the provision of food stocks, medical supplies and equipment for local hospitals.
In addition, ArcelorMittal is channeling donations from ArcelorMittal employees worldwide via UNICEF. Till date, over $5.6 million has been donated in this way.
The company also operated a programme of voluntary evacuation to Poland and western Ukraine for family members of ArcelorMittal Kryvyi Rih employees, in response to demand. Till date, approximately 1,000 individuals have been safely evacuated.
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