ArcelorMittal (MT) Ships Rebar for Panama Canal Project
Steel giant ArcelorMittal (MT) announced that it has shipped more than 192,000 tons of rebar for the Panama Canal expansion project. The company supplied the latest rebar, in grade 60 and grade 75, which will be utilized in the construction of the third set of locks.
The third set of locks is the main part of the Panama Canal expansion project and aims to provide a transit system for Post-Panamax ships, through the construction of locks on the Atlantic and Pacific sides of the channel. The construction and design of this part is, therefore, a crucial part for the Panama Canal expansion project. The third set of locks will enable the Panama Canal to meet the present and future demands of maritime traffic by increasing its capacity.
Ever since the contract was signed with customer Grupos Unidos por el Canal (:GUPC) in Oct 2010, ArcelorMital has supplied more than 242,000 tons of steels from its Las Truchas plant for the project. ArcelorMittal Projects team, which is part of Distribution Solutions, handles sales and logistics, while staying in direct interface with the customers.
The Panama Canal Authority (ACP) and its customers stated that they are looking into the construction and design of the fourth set of locks for the canal, which will require another 121,200 tons of steel products - the equivalent of twelve Eiffel Towers.
Last month, ArcelorMittal released its second-quarter 2014 results. The company reported net income of $52 million or 3 cents per share in the quarter, contrary to a net loss of $0.8 billion or 44 cents a year ago.
Revenues went up 2.5% year over year to $20.7 billion in the reported quarter. Sales increased year over year due to improved steel shipments and higher marketable iron ore shipments. Total shipments rose 2.9% year over year to 21.5 million metric tons in the quarter.
ArcelorMittal currently has a Zacks Rank #3 (Hold).
Other companies in the steel industry with favorable Zacks Rank include Grupo Simec S.A.B. de C.V. (SIM), TimkenSteel Corporation (TMST) and United States Steel Corporation (X). All of these stocks sport a Zacks Rank #1 (Strong Buy).
Read the Full Research Report on MT
Read the Full Research Report on X
Read the Full Research Report on SIM
Read the Full Research Report on TMST
Zacks Investment Research
