ArcelorMittal (MT) Enters Into Additive Manufacturing Market
ArcelorMittal MT has officially entered the additive manufacturing (AdM) market by establishing itself as a key supplier of steel powder. The company is constructing a state-of-the-art industrial-scale inert gas atomizer in Aviles, Spain, dedicated to producing steel powders for various AdM technologies, including laser powder bed fusion (LPBF), binder jetting (BJ) and direct energy deposition (DED).
Scheduled to commence production in January 2024, the atomizer boasts a substantial batch-size production capacity between 200 kg and three tons, with an initial annual output of 1000 tons. This strategic move enables ArcelorMittal to deliver substantial quantities of steel powders characterized by consistent quality, reliability and traceability, adhering to the exacting standards and specifications of the AdM industry.
Aligning with ArcelorMittal's steadfast commitment to sustainability and decarbonization, the company is dedicated to advancing the eco-friendliness of additive manufacturing. The atomizer will utilize scrap steel to produce powders, leveraging renewable electricity and atomizing with industrial gases generated through renewable energy sources. Also, the packaging solutions employed will be both recycled and recyclable.
ArcelorMittal established a new business unit named ArcelorMittal Powders, which will oversee the commercialization of the atomizer's output. The steel powders will be available in size ranges suitable for all prevalent powder-based metal additive technologies, catering to diverse manufacturing sectors such as aerospace, defense, automotive, medical and energy. These powders will find applications in cutting-edge technological advancements, including brake disc coatings designed to assist Automotive OEMs and Tier Ones in complying with the EU7 regulation on particle emissions. By depositing a layer of powder on the brake disc, wear and corrosion resistance are enhanced, resulting in a significant reduction in particulate emissions during braking.
Shares of ArcelorMittal have lost 10.3% in the past year compared with a 17.1% rise of the industry.
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ArcelorMittal posted earnings of $1.10 per share in third-quarter 2023, down from $1.11 from the previous-year quarter’s levels. The figure beat the Zacks Consensus Estimate of $1.03. Total sales dropped 12% to $16,616 million, missing the consensus estimate of $17,075.1 million. The downside was primarily caused by lower steel prices.
The company projects a 1-2% year-over-year rise in global steel consumption (excluding China) in 2023. ArcelorMittal maintains a positive outlook on steel demand over the medium to long term. Capital expenditures for 2023 are expected to be $4.5-$5 billion. Strategic projects are expected to generate an additional $1.3 billion in normalized EBITDA.
ArcelorMittal Price and Consensus
ArcelorMittal price-consensus-chart | ArcelorMittal Quote
Zacks Rank & Key Picks
ArcelorMittal currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the Basic Materials space are Carpenter Technology Corporation CRS, sporting a Zacks Rank #1 (Strong Buy), and The Andersons Inc. ANDE and Alamos Gold Inc. AGI, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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The Zacks Consensus Estimate for ANDE’s current-year earnings has been revised 8.6% upward in the past 60 days. Andersons beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 32.8% on average. ANDE’s shares have rallied around 39% in a year.
The consensus estimate for Alamos’ current fiscal year earnings is pegged at 52 cents, indicating year-over-year growth of 85.7%. LIN beat the Zacks Consensus Estimate in all of the last four quarters, with the average earnings surprise being 25.6%. The company’s shares have increased 43.8% in the past year.
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