|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's range||8.26 - 8.74|
|52-week range||5.98 - 21.44|
|Beta (5Y monthly)||2.15|
|PE ratio (TTM)||N/A|
|Earnings date||07 May 2020|
|Forward dividend & yield||0.18 (2.19%)|
|Ex-dividend date||16 May 2019|
|1y target est||37.97|
ArcelorMittal South Africa has issued force majeure notices to customers and suppliers "where appropriate" as a nationwide three-week lockdown impacts Africa's biggest steel producer. Triggering a force majeure clause in contracts allows certain terms of an otherwise legally binding agreement to be ignored because of unavoidable circumstances. ArcelorMittal South Africa also said on Friday it has cut salaries for all employees, effective this month, for a "likely" period of three months.
ArcelorMittal said on Wednesday it had signed a deal that would see a significant injection of Italian state funding into the Ilva steelworks and would suspend a bid to walk away from the troubled plant, which it took over in 2018. The accord provides a respite in the four-month dispute that has seen ArcelorMittal threatening to hand back Ilva to the government after disagreements over plans to rescue the plant that was losing 2 million euros (1.71 million pounds) a day last year. The deal will see Rome taking an equity stake at least equal to Arcelor Mittal's remaining liabilities against the original purchase price for Ilva.
It's nice to see the ArcelorMittal (AMS:MT) share price up 15% in a week. But if you look at the last five years the...
(Bloomberg Opinion) -- It’s been almost two years since President Donald Trump announced, on March 1, 2018, that he would be imposing a 25% tariff on steel imports to the U.S. and 10% on aluminum. “We must not let our country, companies and workers be taken advantage of any longer,” he tweeted at the time.The tariffs exempted a few countries to start, and were rolled back last May for products from Canada and Mexico, but otherwise still stand. Things have gone pretty well for the country in the meantime. For companies and workers in the U.S. steel and aluminum industries, not so much. U.S. Steel Corp.’s share price, for example, closed at its highest level in almost seven years on the day the tariffs were announced. It has since declined 80%.Not every steel and aluminum manufacturer’s stock chart makes this point quite so perfectly. The biggest U.S. steel producer, mini-mill operator Nucor Corp., saw its stock price peak in January 2018, not March, and it’s down a mere 31% since then. At the biggest U.S. aluminum producer, Alcoa Corp., the stock peaked in April 2018 and is down 74% since. Those are still sharp declines amid a generally rising stock market, though, and I was unable to find a single publicly traded U.S. steel or aluminum maker that hasn’t experienced something similar since early or mid-2018.As for the workers, primary metals manufacturers did keep adding jobs for the rest of 2018. But they began shedding them last April and now employ fewer people than when the tariffs were announced.As described in detail in the current Bloomberg Businessweek, the tariffs have directly harmed some U.S. steelmakers that depend on imported semi-finished steel slabs. For the most part, though, the industry’s troubles seem to be the product not of the metals tariffs but of a global industrial slump. The world’s biggest steelmaker, Luxembourg-based ArcelorMittal SA, has also experienced a big (45%) stock-price drop since mid-2018. Also, as someone who speculated back in March 2018 that the tariffs might help metals manufacturers at the expense of the much-larger industries that use that metal, I feel obliged to report that this doesn’t seem to have happened either, at least not in terms of employment.What does strike me, though, as I think of the industry sectors that President Trump has gone to bat for in a big way with tariffs and other forms of aid — metals makers, appliance manufacturers, coal miners, and oil and gas drillers sprang immediately to mind — is that hardly any of them have been having a great time of it lately, with all those I just named shedding jobs last year.(1) Meanwhile, the giant technology companies that have been recipients chiefly of the president’s ire keep chugging right along. The causes for these differing fortunes surely go way beyond White House policy, and it’s worth reiterating that the economy overall has been growing and creating jobs. But it does raise some questions about the president’s priorities.There is an unkind saying about Trump to the effect that everything he touches dies, a reference to the many past business failures with which he has been associated. It’s not entirely true — the Manhattan real estate business is still quite alive, despite his continued involvement in it — and the direction of causality isn’t always clear. With Trump’s economic interventions, maybe it’s just that the man is drawn to things that have their glory days behind them (like golf!). As someone who chose to pursue a career in journalism, I cannot help but have some sympathy with this worldview. But nostalgia seems like a counterproductive motivation for industrial policy. Picking winners is hard enough for a government to do successfully, but you’re stacking the deck against yourself if you focus most of your attention on the losers.On Tuesday, the president seemed to change his tune a bit on big tech, celebrating the stock-market gains of the “trillion-dollar club” of Google-parent Alphabet Inc., Amazon.com Inc., Apple Inc. and Microsoft Corp. I wouldn’t make too much of that — on the same day the Federal Trade Commission, controlled by Trump appointees, ordered those four companies plus Facebook Inc. to cough up details of past acquisitions for an investigation that might eventually lead to antitrust action. But if Trump ever decides to help the tech giants, look out. A clearer sell signal would be hard to imagine.(1) According to the Bureau of Labor Statistics, there was an increase in employment in oil and gas extraction over the course of 2019, but an even bigger decrease in employment in "support activities for oil and gas extraction."To contact the author of this story: Justin Fox at email@example.comTo contact the editor responsible for this story: Stacey Shick at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Justin Fox is a Bloomberg Opinion columnist covering business. He was the editorial director of Harvard Business Review and wrote for Time, Fortune and American Banker. He is the author of “The Myth of the Rational Market.”For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
ArcelorMittal and commissioners of the Ilva steelworks in southern Italy have agreed to extend talks to the end of the month after making progress towards a possible deal to buy the plant, a lawyer for the company said on Friday. "Negotiations between the two parties have made a significant step forward and set a new deadline to Feb. 28," ArcelorMittal lawyer Ferdinando Emanuele told reporters. A Milan court was scheduled to discuss on Friday a government bid to stop ArcelorMittal's withdrawal from the plant, but the hearing has been postponed to March 6 in order to let the two parties reach a final deal, the lawyer added.
ArcelorMittal , the world's largest steelmaker, forecast increased demand and a drop in its debt levels this year after earnings beat forecasts at the end of 2019, lifting its shares. Market conditions remained challenging, Chief Financial Officer Aditya Mittal told a conference call, although there were early signs of improvement, particularly in ArcelorMittal's core markets of the United States, Europe and Brazil. Mittal said destocking accounted for at least half of the demand declines from its three main markets last year.
(Bloomberg Opinion) -- Canadian transportation champion Bombardier Inc. is running out of road. Its shares lost more than one-third of their already much diminished value last week after another disastrous profit warning.The trains and private jet manufacturer may be forced to exit its commercial aerospace joint venture with Airbus SE because of a shortage of cash; a writedown looms when the group reports 2019 results next month. In the meantime, it’s looking at ways to accelerate repayment of its $10 billion debt pile, which suggests a breakup might be on the cards. Bombardier has held talks about a combination of its rail businesses with French rival Alstom SA, Bloomberg reported on Tuesday, adding that this is one of several options being considered.On the other side of the Atlantic another storied industrial conglomerate, ThyssenKrupp AG, is suffering a comparable crisis. The German steel and car-parts maker has put its prized elevator division up for sale to help with its massive debt and pension liabilities.When their respective restructurings are completed, these vast and politically important employers will be shadows of their former selves. ThyssenKrupp has already been booted from Germany’s benchmark Dax index, while Bombardier’s on the cusp of becoming a penny stock (again).So how did they get into such a mess and why haven’t they managed to extricate themselves, despite years of restructuring and several false dawns? In both cases, hubris, shoddy governance and poor project management have played a role in their downfall. The fate of the two companies was sealed around a decade ago when they bet the farm on high-risk growth strategies — and lost. Bombardier signed off on the C-Series, an ambitious attempt to break Airbus and Boeing Co.’s lock on the commercial aerospace market. The small, fuel-efficient jet won rave reviews but orders were disappointing and delays caused costs to balloon to about $6 billion and debt to pile up. Bombardier made things worse by trying to bring several new business jets to market at the same time. Weak sales forced it to abandon development of the Learjet 85 — resulting in a $2.5 billion writedown — and to cede control of the C-Series to Airbus for the humiliating sum of one Canadian dollar.ThyssenKrupp’s original sin was sinking about 12 billion euros ($13.3 billion) into a pair of steel plants in Brazil and the U.S. to try to keep pace with the acquisitive ArcelorMittal SA. Poor construction work and a faulty business plan led to massive losses from which ThyssenKrupp has never really recovered.Woeful governance had a hand in both corporate disasters. Bombardier has a dual-share structure that gives the founding Bombardier-Beaudoin families majority voting control even though they own a much smaller fraction of the share capital. Pierre Beaudoin served as chief executive officer from 2008 until 2015 — during which time his father, Laurent, remained chairman — but he didn’t do a very good job. Pierre is now the chairman.ThyssenKrupp’s anchor shareholder, the Krupp Foundation, presided over a management culture that prized fealty and the preservation of corporate perks, including the company’s hunting grounds, but failed to prevent compliance breaches. Recent boardroom fireworks at the German giant (two chief executives and a chairman have departed in quick succession) suggest it remains dysfunctional.In their attempt to stop the rot, ThyssenKrupp and Bombardier have followed a similar script. Scrap the dividend, sell underperforming assets, slash thousands of jobs and cut costs. But the cash flow needed to cut debt has never consistently materialized and things have got worse.In 2019 ThyssenKrupp burned through 1.1 billion euros of cash and it expects to consume even more in 2020, risking a breach of banking covenants. Bombardier burned about $1.2 billion in cash last year, far in excess of the roughly break-even target it set at the start of the year.A problem for both companies has been estimating the cost and completion date of large projects. It’s one reason why ThyssenKrupp’s industrial plant construction unit — once a decent source of cash flow from large customer prepayments — has become a bottomless money pit (the unit is now up for sale). At Bombardier, several high-profile train projects have run late and over budget. Bombardier must pay penalties for late delivery.Judging by their balance sheets, both companies appear to be in trouble. ThyssenKrupp has just 2.2 billion euros in net assets, while Bombardier’s liabilities far exceed its reported assets.However, unlike Bombardier’s, ThyssenKrupp’s bonds still trade well above par and its 7.4 billion euros market capitalization is almost four times that of the Canadian company. That’s because ThyssenKrupp still has something of value to sell: The elevators unit could fetch more than 15 billion euros if management decides to part with all of it (the sale process is ongoing and ThyssenKrupp might opt to keep a majority stake).Bombardier doesn’t face an immediate cash crunch thanks to the proceeds of recent asset sales and no big debt maturities this year. But having already offloaded its ageing Q400 turboprop aircraft line and its Belfast wing factory, it’s not exactly overburdened with stuff to sell to meet future liabilities.Neither of Bombardier’s two remaining core divisions, trains and private jets, is worth as much as ThyssenKrupp’s elevators. In 2015 Bombardier sold a 30% stake in its rail division to the Quebec public pension fund, valuing the whole unit at $5 billion. The business aviation division would probably fetch more.For both businesses, the difficulty with flogging more silverware is that what’s left over probably won’t generate much profit.The moral of these twin corporate calamities is simple: If tens of thousands of people depend on you for employment, don’t bite off more than you can chew. And make sure the higher-ups know what’s going on.To contact the author of this story: Chris Bryant at email@example.comTo contact the editor responsible for this story: James Boxell at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
An Italian court ruled on Tuesday that one of three blast furnaces at ArcelorMittal's Ilva steel plant need not be shut down despite concerns it was in breach of safety rules, throwing a lifeline to the loss-making plant in southern Italy. The decision overturns a previous order from a local magistrate that the furnace should be closed after the death of a worker at Europe's biggest steel plant in the city of Taranto. The ruling removes a potential hurdle in talks between state-appointed commissioners managing the Ilva plant and ArcelorMittal to revive a 2018 deal for the world's biggest steelmaker to buy the loss-making steelworks.
The company, whose net debt stood at $10.7 billion at the end of September, said on Monday the sale of the stake in Global Chartering Ltd (GCL) to DryLog Ltd would cut its debt by $530 million. ArcelorMittal said it expected to close the deal before the end of this year. GCL operates 28 dry cargo vessels, 25 of which are on long-term leases and three owned outright, and will continue to handle a share of ArcelorMittal's shipments.
ArcelorMittal and commissioners of the Ilva steelworks have moved closer to a deal over the future of the ailing plant and have agreed to extend their talks, a lawyer representing the company said on Friday. "There is an agreement that lays out the groundwork for negotiations that will continue until a deadline of Jan. 31 in order to reach a binding accord," ArcelorMittal lawyer Ferdinando Emanuele told reporters. A Milan court was scheduled to discuss on Friday a government bid to stop ArcelorMittal's withdrawal from Europe's biggest steel plant, but the hearing is now likely to be postponed to leave room for the negotiations.
ArcelorMittal SA said on Monday it had formed a joint venture with Nippon Steel Corp to run Essar Steel, the bankrupt Indian steel company that ArcelorMittal has taken over. Last month, India's Supreme Court had cleared the way for ArcelorMittal to take over Essar Steel following a legal tussle that dragged through multiple courts for over two years.ArcelorMittal and Nippon Steel had bid jointly for Essar, which has a capacity of 10 million tonnes of steel per year.
The Italian state is ready to take an 18% stake in the troubled Ilva steel plant in southern Italy through a public agency, newspaper Il Messaggero reported on Sunday, citing a draft proposal to save the factory. Industry ministry officials will present the plan on Monday to steel firm ArcelorMittal, the daily said, in an attempt to convince it to scrap its threat to walk away from a 2018 deal to buy the plant in the city of Taranto. The factory directly employs around 8,200 workers in one of Italy's least prosperous areas.
A lawyer representing ArcelorMittal said on Wednesday the company hoped it could reach a deal with the Italian government over the Ilva plant, after the steelmaker tried to walk away from a 2018 deal to buy the site. ArcelorMittal has blamed its threatened exit on a decision by parliament to scrap a guarantee of legal immunity from prosecution over environmental risks while it carried out a clean-up at Ilva, in the southern Italian city of Taranto. "There is the basis for a negotiation that can lead to an agreement", lawyer Ferdinando Emanuele said after a Milan court postponed to Dec. 20 a hearing to discuss a government bid to stop ArcelorMittal from tearing up the 2018 purchase deal.
Italy's Industry Minister Stefano Patuanelli said on Tuesday that state-owned agency Invitalia could take a stake in Europe's biggest steel plant Ilva, while state intervention through Cassa Depositi e Prestiti (CDP) was more difficult. Rome and ArcelorMittal are on the brink of a legal battle as the latter tries to walk away from a 2018 deal to buy the steel plant in the southern city of Taranto, which directly employs around 8,200 workers in one of Italy's least prosperous areas.
Steelmaker ArcelorMittal has agreed to immediately restart talks with the Italian government over the future of the Ilva plant, Prime Minister Giuseppe Conte said after a four-hour meeting with the company. Rome and ArcelorMittal are on the brink of a legal battle as the latter tries to walk away from a 2018 deal to buy the steel plant in the southern city of Taranto, which directly employs around 8,200 workers in one of Italy's least prosperous areas. India-based ArcelorMittal has blamed its threatened exit on the Italian government's move to scrap a guarantee of legal immunity from prosecution over environmental risks while it carried out the clean-up at Ilva's heavily polluted site.