34.86 +0.19 (0.55%)
Pre-market: 5:37AM EST
|Bid||34.72 x 3400|
|Ask||34.76 x 3200|
|Day's range||34.65 - 35.48|
|52-week range||19.59 - 37.50|
|PE ratio (TTM)||7.77|
|Earnings date||21 Feb 2017 - 27 Feb 2017|
|Forward dividend & yield||0.00 (0.00%)|
|1y target est||41.65|
Although Donald Trump had resolved to protect the domestic US steel industry from the onslaught of subsidized imports, they rose in 2017. On multiple instances, US steelmakers (SLX) such as ArcelorMittal (MT), U.S. Steel Corporation (X), and Nucor (NUE) have urged the US administration to act on the Section 232 probe and end subsidized steel imports, which have been impacting their market share and pricing.
On the 4Q17 earnings call, ArcelorMittal’s (MT) CEO, Lakshmi Mittal, outlined a new capital allocation strategy. According to Mittal, “Mostly, we will continue to prioritize deleveraging, we believe that a net debt level of $6 billion with an appropriate target to sustain investment-grade rating metrics and support positive free cash flow even in the low point on the cycle. A few years back, ArcelorMittal set itself a medium-term net debt target of $15 billion.
On the 4Q17 earnings call, Kevin Bradley, U.S. Steel Corporation’s (X) CFO, said the company is “committed to strengthening the balance sheet.” He also talked about derisking the balance sheet and touched upon the redemption of $200 million of secured debt in 4Q17.
This year, Nucor expects its capital expenditure to more than double from the 2017 levels. According to Jim Frias, Nucor’s CFO, “Approximately two thirds of planned 2018 capital expenditures are for expansion, product improvement and cost-saving projects, with the remaining one third for maintenance purposes.” The company has invested ~$2 billion since 3Q16, and it expects these capital investments to add $400 million to its annual EBITDA (earnings before interest, tax, depreciation, and amortization) in a normal business cycle.
During their 4Q17 earnings call, Roger Newport, AK Steel’s (AKS) CEO, noted that in 2017 the company “took actions to strengthen our balance sheet by refinancing $680 million of our debt. The company also outlined a long-term strategic plan under which it would work toward generating an economic profit, assuming its weighted average cost of capital of 10.5%. Under its transformation strategy (XME), among other targets, U.S. Steel Corporation (X) is also working to generate an economic profit.
ArcelorMittal (MT) has a current ratio of 1.25, based on its 4Q17 financial data. You can define the current ratio as current assets divided by current liabilities. U.S. Steel Corporation (X) has a current ratio of 1.75, while AK Steel’s (AKS) current ratio is 1.83, according to the most recent financial data.
Advisers evaluating the offers for Essar Steel India Ltd. are recommending that both bids for the insolvent company be disqualified, according to people with knowledge of the matter.
16 February 2018- ArcelorMittal has published its annual report for the year ended December 31, 2017. The report has been filed with the electronic database of the Luxembourg Stock Exchange and is available ...
15 February 2018- ArcelorMittal has today filed its Annual Report 2017 on Form 20- F with the U.S. The report is now available on ArcelorMittal's website http://corporate.arcelormittal.com under SEC filings. ...
In this article, we’ll look at steel companies’ 1Q18 earnings guidance from their 4Q17 earnings calls. On AK Steel’s (AKS) 4Q17 call, Jaime Vasquez, AK Steel’s CFO, said, “We expect that our average flat-rolled steel selling price per ton in the first quarter will be up marginally compared to the fourth quarter of 2017.” However, the company expects its adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) margin to rise by 150 basis points in 1Q18 compared to the sequential quarter. Since AK Steel’s revenues are expected to be flat in 1Q18, higher margins should translate into higher EBITDA.
As we discussed previously, ArcelorMittal (MT) has submitted its bid for Essar Steel. The acquisition, if completed, will provide ArcelorMittal with a strong platform in India. Notably, ArcelorMittal doesn’t have a major presence in India.
ArcelorMittal’s (MT) subsidiary ArcelorMittal India Private Limited has made a bid to acquire troubled Indian steelmaker Essar Steel. Because China’s steel demand (RIO) (BHP) is estimated to have peaked after years of rapid growth, analysts see India as a bright spot for global steel markets (PKX).
Earlier this week, ArcelorMittal (MT), the world’s largest steel producer, announced that it would bid for the stressed assets of Indian steel company Essar Steel (EPI). The announcement came after a couple of other acquisitions by ArcelorMittal. Last year, a consortium led by ArcelorMittal reached a binding agreement to buy the Ilva steel plant in Italy.