arcelormittal-ny registered (MT) Key Developments
PennEnvironment Takes First Step in Filing Lawsuit against Arcelormittal S.A
Aug 4 15
PennEnvironment has taken the first step in filing a lawsuit against ArcelorMittal S.A. alleging the company has repeatedly violated the federal Clean Air Act at its Monessen coke plant. PennEnvironment said the Philadelphia-based environmental group sent a presuit notice letter to ArcelorMittal, the U.S. Department of Environmental Protection and the Pennsylvania Department of Environmental Protection to begin the process of filing a citizens lawsuit under the federal Clean Air Act. The letter alleges the facility, which was restarted in April 2014, has showered nearby residents with soot acidic gases, and noxious odors. Emissions from the plant include hydrogen sulfide, sulfur dioxide, and particulate matter. The complaint covers residents in the municipalities of Monessen, Donora, Monongahela, and Carroll Township, located in Westmoreland and Washington counties. Citizens are able to bring a lawsuit forward under a provision of the Clean Air Act, which allows individuals and organizations to sue violators in federal court after first providing 60 days notice of their intent to file. The Monessen plant, which is located along the Monongahela River, is a 45-acre conventional coke plant.
ArcelorMittal Reports Unaudited Consolidated Earnings and Production Results for the Second Quarter and Six Months Ended June 30, 2015; Reaffirms Earnings Guidance for 2015; Reports Impairment Charges for Second Quarter of 2015
Jul 31 15
ArcelorMittal reported unaudited consolidated earnings and production results for the second quarter and six months ended June 30, 2015. For the quarter, the company reported sales of $16,890 million compared to $20,704 million a year ago. Operating income was of $579 million compared to $832 million a year ago. Income before taxes and non-controlling interest was of $306 million compared to $240 million a year ago. Net income attributable to equity holders of the parent was of $179 million or $0.10 per diluted share compared to $52 million or $0.03 per diluted share a year ago. EBITDA was $1,399 million compared to $1,763 million a year ago. Net cash provided by operating activities was of $1,019 million compared to $1,548 million a year ago. Purchase of property, plant and equipment and intangibles was of $542 million compared to $774 million a year ago.
For six months, the company reported sales of $34,008 million compared to $40,492 million a year ago. Operating income was of $1,150 million compared to $1,506 million a year ago. Loss before taxes and non-controlling interest was of $204 million compared to income of $144 million a year ago. Net loss attributable to equity holders of the parent was of $549 million or $0.31 per diluted share compared to $153 million or $0.09 per diluted share a year ago. EBITDA was $2,777 million compared to $3,517 million a year ago. Net cash provided by operating activities was of $104 million compared to $1,077 million a year ago. Purchase of property, plant and equipment and intangibles was of $1,287 million compared to $1,649 million a year ago. Net debt of $16.6 billion as of June 30, 2015, stable as compared to March 31, 2015 mainly due to positive free cash flow of $0.5 billion offset by negative forex $0.2 billion and dividends of $0.3 billion. Net debt was lower by $0.9 billion year on year.
Impairment charges for second quarter of 2015 were $19 million relating to the closure of the Georgetown facility in the US, compared to nil in both First Quarter 2015 and Second Quarter 2014.
Assuming current market conditions persist into second half of 2015, and given an improvement is expected in the US due to the ongoing end of destocking and improved Calvert operations, as well as actions taken to improve the cost base, the Company’s guidance for 2015 remains unchanged and the company continue to expect 2015 EBITDA to be within the range of $6.0 billion - $7.0 billion. Furthermore, the Company expects 2015 capital expenditures of approximately $3.0 billion and 2015 net interest expense of approximately $1.4 billion. Importantly, the Company continues to expect positive free cash flow in 2015 and to achieve progress towards the medium term net debt target of $15 billion.
For the quarter, crude steel production was 24.0 MT against 23.1 MT for the same period a year ago.
For the six months, crude steel production was 47.8 MT against 46.1 MT for the same period a year ago.
ArcelorMittal, Q2 2015 Earnings Call, Jul 31, 2015
Jul 24 15
ArcelorMittal, Q2 2015 Earnings Call, Jul 31, 2015
United Steelworkers Union Balks at ArcelorMittal's Draconian Contract Proposal
Jul 21 15
United Steelworkers union said that ArcelorMittal's proposed new labour contract for US facilities is too draconian to be accepted. ArcelorMittal wants a three-year pact with no wage increases, deep cuts in benefits for both active and retired workers, and a two-tier compensation system that would see new workers earn less than current employees. The union accused ArcelorMittal of having 'cherry picked' parts of USW contracts from other industries. ArcelorMittal declined to comment on the union's remarks. The company also wants to stop contributing to the union's voluntary employee beneficiary association in a bid to 'eliminate benefits for legacy retirees and also wants to slash healthcare costs by reducing coverage and increasing monthly premiums. Other proposals include lower incentive payments for some workers, no incentives for others and more limited vacation, sickness and accident benefits.
ArcelorMittal Not Planning to Divest Assets
Jul 14 15
ArcelorMittal (ENXTAM:MT) may not sell assets. PJSC ArcelorMittal Kryviy Rih in a response to an article published by KazTAG by saying that the company no current plans to sell its assets in Kazakhstan, Ukraine or South Africa. Interfax quoted ArcelorMittal sa saying, “ArcelorMittal confirms that it has no current plans to sell it's assets in Kazakhstan, Ukraine or South Africa.” The statement added, “Operating conditions in these regions are very challenging, due to a combination of low economic activity and a falling demand for steel that is further exacerbated by high levels of imports, from China and elsewhere. The devaluation of the ruble is also affecting competitiveness in Kazakhstan. The company is therefore focused on implementing measures to improve the operational performance of the plants.” ArcelorMittal Kryvyi Rih’s Chief Executive Offiver, Paramjit Kahlon said at a trade union conference that ArcelorMittal has invested $1.2 billion ArcelorMittal Kryvyi Rih and the company has no plans to sell the enterprise due to the difficult situation on the metal product markets.