ArcelorMittal Q4: Steel Giants Net Income Declines 93 Per Cent To $261 Million

On February 9, 2023, ArcelorMittal announced results for the fourth quarter and three-month period that ended December 31, 2022

ArcelorMittal said that its steel production fell to 13.2 million tonnes (MT) from 16.5 million tonnes (MT) a year ago. ( Image Source :Getty )

Multinational steel manufacturer ArcelorMittal posted a 93.54 per cent decline in its net income to $261 million in the fourth quarter (Q4) of 2022 on accounts of lower sales. On February 9, 2023, ArcelorMittal announced results for the fourth quarter and three-month period that ended December 31, 2022. 

ArcelorMittal has a net income of $4,045 million in the Q4 of 2021, which declined to $261 million in Q4 of 2022. 

The firm's adjusted net income in the fourth quarter was $1,189 million compared to $3,827 million for the fourth quarter of 2021.

ArcelorMittal said that its steel production fell to 13.2 million tonnes (MT) from 16.5 million tonnes (MT) a year ago. The total steel shipments in Q4, 2022 stood at 12.6 MT from 15.8 MT in the October-December period of 2021, 19.9 per cent lower. Sales in Q2 of the year stood at $16.9 billion down 18.8 per cent compared to $20.8 billion for Q4 of 2021. 

According to the company, it was primarily due to lower average steel selling prices and lower steel shipment volumes.

Aditya Mittal, ArcelorMittal's Chief Executive Officer, said, "Our full-year results demonstrate the benefits of our strengthened asset portfolio and the improvements we have made to our cost base in recent periods. This, alongside the mitigatory actions, we took in the second half of the year to adapt production levels and optimise energy consumption, has added resilience to our business".

He said that customer destocking in the second half of 2022 has peaked, hence, providing support to apparent steel consumption and steel spreads. Although geopolitical uncertainty remains high, the company remains confident to execute its strategy of growth, decarbonisation, and sustainable returns through all aspects of the cycle.

ArcelorMittal Mittal Nippon Steel (AMNS) India is owned and run by ArcelorMittal and Nippon Steel of Japan in a joint venture. AMNS India's crude steel production in Q4 of 2022 declined by 12.1 per cent to 1.6 MT compared to 1.8 MT in the same period last year. This was due to lower exports following the imposition of export duties on steel exports from India in Q2 2022, the company said. 

Shipments of steel fell by 8 per cent to 1.6 MT in the fourth quarter of 2022 from 1.7 MT in the fourth quarter of 2021. EBITDA for the fourth quarter of 2022 stood at $162 million, lower than the third quarter's $204 million, according to the statement.