ArcelorMittal Issues Euro 750M Notes

Zacks

Steel giant ArcelorMittal (MT) has announced the issuance of €750 million (roughly $1 billion) 3% notes under its €3 billion (around $4.1 billion) wholesale Euro Medium Term Notes Program. The Notes are due March 25, 2019, and the proceeds from the issuance will be utilized for general corporate purposes.

ArcelorMittal, the world’s leading steel company, recently hosted its Investor day. The company reaffirmed its 2014 outlook of 3.5% to 4% growth in the global steel market.

ArcelorMittal highlighted its key value drivers and key enablers including a strong balance sheet, active portfolio management, a decentralized organizational structure and the best talent. The company stated that its medium-term earnings before interest, tax, depreciation and amortization (:EBITDA) will be $150 per ton.  

Meanwhile, the company will streamline its management and reorganize its steel businesses by geography effective Jan 1, 2014. External reporting will follow this structure under the new segments: ACIS, Brazil (and neighboring countries), Europe, Mining and NAFTA.

ArcelorMittal, on Feb 7, posted a net loss of $1.2 billion or 69 cents per share for the fourth quarter of 2013, narrower than the net loss of $3.8 billion or $2.47 per share a year ago, due to lower impairment charges.

Adjusted loss of 31 cents per share was, however, wider than the Zacks Consensus Estimate of a loss of 16 cents per share. For full-year 2013, ArcelorMittal posted a net loss of $2.5 billion or $1.46 per share, lower than the net loss of $3.4 billion or $2.17 per share recorded in 2012.

Revenues rose 2.8% year over year to $19.8 billion in the reported quarter but missed the Zacks Consensus Estimate of $20.1 billion. For 2013, revenues decreased 5.7% to $79.4 billion in 2013 from $84.2 billion in 2012, mainly due to lower average steel selling prices.

ArcelorMittal is a Zacks Rank #4 (Buy) stock.

Other companies in the steel and related industries with favorable Zacks Rank are Norsk Hydro ASA (NHYDY), NN Inc. (NNBR), and Worthington Industries, Inc. (WOR). All of them retain a Zacks Rank #2 (Buy).

Read the Full Research Report on WOR
Read the Full Research Report on MT
Read the Full Research Report on NNBR
Read the Full Research Report on NHYDY


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