Luxembourg, November 11, 2021 – ArcelorMittal (“ArcelorMittal” or the “Company”) (MT (New York, Amsterdam, Paris, Luxembourg), MTS (Madrid)), world A leading integrated steel and mining company today announced results for three and nine months ended 30 September 20211,2.
Note. As previously announced, beginning in the second quarter of 2021, ArcelorMittal has revised its reportable segment presentation to report on AMMC and Liberia’s performance in the mining segment. Other mines are accounted for under its core metals division, from the second quarter of 2021 ArcelorMittal Italia will be spun off and accounted for as a joint venture.
“Our results for the third quarter were supported by continued strong pricing, resulting in the highest net income and lowest net debt since 2008. However, our safety performance has surpassed this success. Improving the group’s safety performance is a priority. our safety procedures and analyze what further actions can be taken to eliminate all fatalities.
“At the beginning of the quarter, we announced ambitious targets to reduce CO2 emissions by 2030 and planned to invest in various decarburization initiatives. Our stated goal is to lead the steel industry in its important role in achieving zero emissions in the global economy. That’s why we’re reattaching to Breakthrough Energy Catalyst, working with Science-Based Targets on new approaches for the steel industry, and supporting the Green Public Procurement campaign for the Deep Decarbonization of Industry initiative launched this week at COP26.
“While we continue to see volatility due to the persistence and impact of COVID-19, this year has been a very strong one for ArcelorMittal. We have changed our balance sheet to In order to transition to a low-carbon economy, we are strategically growing through high-quality, high-yield projects, and we are returning capital to our shareholders.We are aware of the challenges, but we feel that the opportunities that will exist in the steel industry in the coming years and beyond are encouraged.”
“The outlook remains positive with underlying demand expected to continue to improve and while steel prices will be slightly below recent all-time highs, steel prices will remain strong, which will be reflected in annual contracts in 2022.”
Protecting the health and well-being of our employees remains a top priority for the company and continues to strictly follow World Health Organization (COVID-19) guidance, while adhering to and following specific government guidelines.
Occupational health and safety performance based on own and contractor lost time injury rate (LTIF) in Q3 2021 (“Q3 2021”) was 0.76x compared to Q2 2021 (“ Q2 2021″) 0.89x. data for the December 2020 sale of ArcelorMittal USA has not been restated and does not include ArcelorMittal Italia for all periods (now accounted for using the equity method).
Health and safety indicators for the first nine months of 2021 (“9M 2021”) were 0.80x compared to 0.60x for the first nine months of 2020 (“9M 2020”).
The company’s efforts to improve health and safety performance are focused on improving the safety of its employees, with a focus on eliminating fatalities. Changes have been made to the company’s executive compensation policy to reflect this focus.
Analysis of the results for the 3rd quarter. 2021 compared to Q2 2021 and Q3 2020 Total steel shipments in Q3 Q2 2021 were 14.6% due to weak demand (particularly for cars) as well as production constraints and delays in order shipments tonnage, down 9.0% from 16.1 tonnes in the second quarter of 2021 and is expected to change in the fourth quarter of 2021. Adjusted for volume change (i.e. excluding ArcelorMittal Italy 11 shipments unconsolidated as of April 14, 2021) Q3 steel shipments 2021 compared to Q2 2021 Down 8.4% compared to: ACIS -15.5%, NAFTA -12.0%, Europe -7.7% (band-adjusted) and Brazil -4.6%.
Adjusted for volume changes (i.e. excluding shipments of ArcelorMittal USA sold to Cleveland Cliffs on December 9, 2020 and ArcelorMittal Italia11 unconsolidated as of April 14, 2021), steel shipments in the third quarter of 2021 increased by 1. 6% compared to Q3 2020: Brazil +16.6%; Europe +3.2% (range-adjusted); NAFTA +2.3% (range-adjusted); partially offset by ACIS -5.3%.
Sales in the third quarter of 2021 were $20.2 billion compared to $19.3 billion in the second quarter of 2021 and $13.3 billion in the third quarter of 2020. Compared to the second quarter of 2021, sales increased by 4.6% mainly due to higher average realized steel prices (+15.7%) and higher mining revenues mainly due to increased shipments (ArcelorMittal Mining Canada. Company ( AMMC7) resumed work after the settlement of the strike). actions affecting operations in the second quarter of 2021). Sales in the third quarter of 2021 increased by +52.5% compared to the third quarter of 2020, mainly due to significantly higher average steel selling prices (+75.5%) and iron ore reference prices (+38, four%).
Depreciation was $590 million in the third quarter of 2021 compared to $620 million in the second quarter of 2021, significantly lower than the $739 million in the third quarter of 2020 (due in part to the mid-April 2021 spin-off of ArcelorMittal Italy and the sale of ArcelorMittal in the US will begin in December 2020. Depreciation charges for FY 2021 are expected to be approximately $2.6 billion (based on current exchange rates).
There were no impairment items in the third quarter of 2021 and the second quarter of 2021. Net impairment for the third quarter of 2020 was $556 million, including a partial reversal of impairment losses recorded following the announced sale of ArcelorMittal US ($660 million) and an impairment charge of $104 million related to with the permanent closure of the blast furnace and the smelter in Krakow (Poland).
A $123 million special project in the third quarter of 2021 is linked to the expected cost of decommissioning a dam at the Serra Azul mine in Brazil. There are no unusual items in Q2 2021 or Q3 2020.
Operating income for the third quarter of 2021 was US$5.3 billion compared to US$4.4 billion in the second quarter of 2021 and US$718 million in the third quarter of 2020 (including unusual and impairment items described above) . The increase in operating profit in the third quarter of 2021 compared to the second quarter of 2021 reflects the positive effect of the price on the cost of production of the steel business, which more than offset the decrease in steel shipments, as well as the improvement in the performance of the mining industry. segment (due to increased iron ore shipments partially offset by lower iron ore target prices).
Revenue from associates, joint ventures and other investments in the third quarter of 2021 was $778 million compared to $590 million in the second quarter of 2021 and $100 million in the third quarter of 2020. In the third quarter of 2021, performance was significantly higher due to improved performance of companies investing in Canada, Calvert5 and China12.
Net interest expense in the third quarter of 2021 was $62 million compared to $76 million in the second quarter of 2021 and $106 million in the third quarter of 2020, mainly due to post-redemption savings.
Foreign exchange and other net financial losses were $339 million in the third quarter of 2021 compared to $233 million in the second quarter of 2021 and $150 million in the third quarter of 2020. Q3 2021 includes a $22 million foreign exchange gain (compared to $29 million and $17 in Q2 2021 earnings in Q3 2020) and a call option associated with the mandatory convertible bonds. million). The third quarter of 2021 also includes i) an expense of USD 82 million related to the revised valuation of the put option granted to Votorantim18; ii) lawsuits relating to the acquisition of Votorantim 18 by ArcelorMittal Brazil (currently pending appeal), associated losses of US$153 million (consisting primarily of interest and indexation costs, financial implications net of taxes and expected recovery less than US$50 million)18. The second quarter of 2021 was impacted by a $130 million bond prepayment fee.
ArcelorMittal’s income tax expense was $882 million in the third quarter of 2021 compared to income tax expense of $542 million in the second quarter of 2021 (including $226 million in deferred tax credits) and $784 million USD for the quarter in the third quarter of 2020 (including deferred tax of USD 580 million).
ArcelorMittal’s net income in the third quarter of 2021 was $4.621 billion (basic earnings per share of $4.17) compared to $4.005 billion (basic earnings per share of $3.47) in the second quarter of 2021 and 2020. Net loss for the third quarter of the year was $261 million (basic earnings per common share of $0.21).
Crude steel production in the NAFTA segment fell by 12.2% to 2.0 t in the third quarter of 2021 compared to 2.3 t in the second quarter of 2021, mainly due to disruptions in Mexico (including the impact of Hurricane Ida ). Adjusted range (excluding the impact of the ArcelorMittal USA sale in December 2020), crude steel production fell -0.5% y/y.
Steel shipments in the third quarter of 2021 decreased by 12.0% to 2.3 tons compared to 2.6 tons in the second quarter of 2021, mainly due to lower production, as indicated above. Adjusted for range shipments, steel shipments rose 2.3% year-over-year.
Sales in the third quarter of 2021 increased by 5.6% to $3.4 billion compared to $3.2 billion in the second quarter of 2021, mainly due to an increase in the average realized steel price by 22 .7%, partly driven by lower steel shipments. as mentioned above).
There is no impairment in the third quarter of 2021 and the second quarter of 2021. Operating income for the third quarter of 2020 includes a $660 million gain related to the partial reversal of impairment losses recorded by ArcelorMittal USA following the announcement of the sale.
Operating income for the third quarter of 2021 was $925 million compared to $675 million in the second quarter of 2021 and $629 million in the third quarter of 2020, positively impacted by the aforementioned impairment items affected by COVID-19. pandemic.
EBITDA in the third quarter of 2021 was $995 million, up 33.3% from $746 million in the second quarter of 2021, primarily due to positive price and cost effects partially offset by lower shipments as described above. EBITDA in the third quarter of 2021 was higher than the $112 million in the third quarter of 2020, mainly due to significant positive price and cost effects.
The share of crude steel production in Brazil fell by 1.2% to 3.1 t in the third quarter of 2021 compared to 3.2 t in the second quarter of 2021 and was significantly higher compared to 2.3 t in the third quarter 2020 when production was adjusted. COVID-19 pandemic.
Steel shipments in the third quarter of 2021 decreased by 4.6% to 2.8 tons compared to 3.0 tons in the second quarter of 2021, mainly due to lower domestic demand due to delayed orders at the end of the quarter, which did not were fully compensated by exports. shipment . Steel shipments in the third quarter of 2021 increased by 16.6% compared to 2.4 million tons in the third quarter of 2020 due to an increase in flat steel volumes (up 45.4% due to increased exports).
Q3 2021 sales rose 10.5% to $3.6 billion from $3.3 billion in the second quarter of 2021 as a 15.2% increase in average selling prices for steel was partially offset by lower steel shipments .
Operating profit for the third quarter of 2021 was $1,164 million compared to $1,028 million in the second quarter of 2021 and $209 million in the third quarter of 2020 (due to the impact of the COVID-19 pandemic). Operating income for the third quarter of 2021 was impacted by $123 million in exceptional projects related to the expected cost of decommissioning a dam at the Serra Azul mine in Brazil.
EBITDA in the third quarter of 2021 increased by 24.2% to $1,346 million compared to $1,084 million in the second quarter of 2021, mainly due to lower steel shipments, which partially offset the positive impact cost prices. EBITDA in the third quarter of 2021 was significantly higher than the $264 million in the third quarter of 2020, mainly due to a positive impact on the price and an increase in steel shipments.
The share of European crude steel production fell by 3.1% to 9.1 t in the third quarter of 2021, compared to 9.4 t in the second quarter of 2021. Following the formation of a public-private partnership between Invitalia and ArcelorMittal Italia, renamed Acciaierie d’Italia Holding (subsidiary of ArcelorMittal ILVA, lease and purchase agreement), ArcelorMi Tal began the asset and liability split starting in mid-April 2021. Adjusted for changes in crude steel production in the third quarter of 2021, it decreased by 1.6% compared to the second quarter of 2021 and increased by 26.5% in the third quarter of 2021 compared to the third quarter of 2020.
Steel shipments fell 8.9% to 7.6 t in Q3 2021 from 8.3 t in Q2. 2021 (range-adjusted -7.7%), compared to 8.2 t in Q3 2020 (range-adjusted -7.7%). Steel shipments in the third quarter of 2021 were impacted by weaker demand, including lower car sales (due to late order cancellations) and logistical constraints related to severe flooding in Europe in July 2021.
Sales in the third quarter of 2021 increased by 5.2% to $11.2 billion compared to $10.7 billion in the second quarter of 2021, mainly due to a 15.8% increase in average realized prices (flat products +16.2 % and long products +17.0%).
The impairment charges for the third quarter of 2021 and the second quarter of 2021 are nil. Impairment charges in the third quarter of 2020 amounted to $104 million due to the closure of blast furnaces and steel mills in Krakow, Poland.
Q3 2021 operating profit of $1,925 million compared to $1,262 million in Q2 2021 operating income and $341 million in Q3 2020 operating loss (due to the aforementioned pandemic COVID-19 and impairment losses).
EBITDA in the third quarter of 2021 was $2,209 million compared to $1,578 million in the second quarter of 2021, mainly due to lower steel shipments, which partially offset the positive cost effect on the price. EBITDA increased significantly in the third quarter of 2021 compared to $121 million in the third quarter of 2020, mainly due to the positive impact of price on cost.
Compared to the second quarter of 2021, ACIS crude steel production in the third quarter of 2021 was 3.0 tonnes, up 1.3% compared to the second quarter of 2021. Crude steel production in Q3 2021 was 18.5% higher compared to 2.5 t in Q3 2020, mainly due to increased production in Ukraine in Q3 2021 and COVID-19 related quarters 2 and Q3 2020 quarterly quarantine measures in South Africa.
Steel shipments in Q3 2021 decreased by 15.5% to 2.4 tons compared to 2.8 tons in Q2 2021, mainly due to weak market conditions in the CIS and delays in shipments of export orders at the end of the quarter, which led to a decrease in shipments in Kazakhstan.
Sales in the third quarter of 2021 decreased by 12.6% to $2.4 billion compared to $2.8 billion in the second quarter of 2021, mainly due to a decrease in steel shipments (-15.5%), partially offset by higher average selling prices for steel (+7.2%). .
Operating income for the third quarter of 2021 was $808 million compared to $923 million in the second quarter of 2021 and $68 million in the third quarter of 2020.
EBITDA in the third quarter of 2021 was $920 million, down 10.9% from $1,033 million in the second quarter of 2021, mainly due to lower steel shipments being partially offset the effect of price on cost. EBITDA in the third quarter of 2021 was significantly higher than the $188 million in the third quarter of 2020, mainly due to lower steel shipments, which partially offset the positive impact of the price on cost.
Given the sale of ArcelorMittal USA in December 2020, the company no longer records coal production and shipments in its income statement.
Iron ore production in the third quarter of 2021 (AMMC and Liberia only) increased by 40.7% to 6.8 tons from 4.9 tons in the second quarter of 2021, down 4.2% from the third quarter 2020. The increase in production in the third quarter of 2021 was mainly due to the return to normal operation of AMMC, which suffered a 4-week strike in the second quarter of 2021, which was partially offset by a decrease in production in Liberia due to a locomotive accident and a seasonally strong monsoon. rain impact.
Iron ore shipments in the third quarter of 2021 increased by 53.5% compared to the second quarter of 2021, mainly due to the aforementioned POX, and decreased by 3.7% compared to the third quarter of 2020.
Operating income increased to $741 million in Q3 2021 from $508 million in Q2 2021 and $330 million in Q3 2020.
3Q 2021 EBITDA increased by 41.3% to $797 million from $564 million in 2Q 2021, reflecting the positive impact of increased iron ore shipments (+53.5%), partly offset by that transport costs were offset by lower iron ore reference prices (-18.5%). ) and higher prices. EBITDA in the third quarter of 2021 was significantly higher than the $387 million in the third quarter of 2020, mainly due to higher underlying iron ore prices (+38.4%).
Joint Venture ArcelorMittal has invested in several joint ventures and joint ventures around the world. The company believes that the joint venture between Calvert (50% stake) and AMNS India (60% stake) is of particular strategic importance and requires more detailed disclosures to improve operational performance and understand the company’s value.