24.36 +0.01 (0.02%)
After hours: 4:21PM EST
|Bid||23.00 x 1400|
|Ask||24.75 x 1400|
|Day's Range||24.33 - 25.04|
|52 Week Range||23.80 - 37.50|
|Beta (3Y Monthly)||3.36|
|PE Ratio (TTM)||4.99|
|Earnings Date||Feb 21, 2017 - Feb 27, 2017|
|Forward Dividend & Yield||0.10 (0.39%)|
|1y Target Est||41.78|
As we noted previously, steel stocks like AK Steel (AKS) and ArcelorMittal (MT) are trading with a year-to-date loss. Steel stocks have underperformed broader equity markets (DIA) in 2018 despite President Trump’s Section 232 tariffs. In this part, we’ll discuss the key reasons why bears love steel stocks.
Now, we’re towards the end of the third-quarter earnings season. Talking of steel stocks, all of the leading US steel producers have released their quarterly earnings. Steel Dynamics was the first major steel company to release its quarterly performance on October 17. Nucor’s (NUE) earnings were released on October 18.
In the final article of this series, we’ll look at Cleveland-Cliffs’ (CLF) valuation and compare it to those of its US steel peers (SLX). Among US (SPY) steel stocks (XME), U.S. Steel Corporation (X) and ArcelorMittal (MT) are trading at the lowest forward EV-to-EBITDA multiples of 3.06x and 3.65x, respectively. Cleveland-Cliffs, on the other hand, is trading at the highest multiple of 5.9x.
SA reached a tentative deal on a new labor contract covering about 15,000 workers after several months of negotiations. The four-year agreement for workers includes wage increases between 3% and 4% each year and a $4,000 ratification bonus. “The proposed four-year agreement mirrors the industry standard on wages, lump-sum payments and pensions and maintains or improves our existing health-insurance benefits for active and retired Steelworkers and their dependents,” the steelworkers union said in prepared remarks.
US steel production is the key factor driving US steelmakers’ (SLX) (XME) revenues. Investors track production data to get a sense of the direction of overall volumes.
As noted in the previous article, Chinese steel production is up handsomely this year and is running at record levels. China’s car sales have fallen for three consecutive months. China is the world’s largest automotive market.
ArcelorMittal's (MT) Q3 results benefit from higher steel selling prices. The company also keeps 2018 outlook unchanged citing favorable market conditions and healthy demand.
In the previous articles, we looked at indicators pertaining to the US steel industry. Steel production is a key metric that investors should track, as it gives insight into the supply side of the equation. According to the World Steel Association, global steel production rose 4.4% YoY in September.
A divestment by ArcelorMittal and upbeat trading statements from IAG and Paddy Power Betfair were the highlights of the European corporate slate on Friday
(MT.AE) said Friday that it has received a binding offer from Liberty House Group for its Dudelange operation in Luxembourg and some of its finishing lines in Belgium. The deal is the final part of a divestment package agreed to by ArcelorMittal in order to gain approval from the European Commission for its acquisition of Italy’s Ilva SpA, the company said. The Belgian assets comprise ArcelorMittal’s hot-dipped galvanizing lines 4 and 5 in Flemalle and its hot-rolled pickling, cold rolling and tin packaging lines in Tilleur.
The assets are the final part of a divestment package the Company agreed with the European Commission (‘EC’) during its merger control investigation into the Company’s acquisition of Ilva S.p.A (‘Ilva’).
Liberty has agreed to buy two steel mills in Belgium and one in Luxembourg from ArcelorMittal. Over the past three years Mr Gupta has built an industrial empire spanning four continents, with $17bn in turnover and a workforce of more than 20,000.
Steel prices are the key driver of steel companies’ earnings. We saw a sharp rally in US steel prices this year after Section 232 tariffs. Steel companies like Nucor (NUE) and Steel Dynamics (STLD) are posting record earnings amid higher US steel prices. AK Steel (AKS) also posted its highest third-quarter earnings in a decade. Cleveland-Cliffs (CLF) also benefits from higher US steel prices.
So far in this series, we’ve looked at US steel supply indicators like domestic production and imports. Along with supply, we also need to look at steel demand indicators. In this article, we’ll look at some indicators of US steel demand (SPY).
ArcelorMittal (MT.AS), the world's largest steelmaker, expects its financial results to improve in the coming months as global economic growth drives demand and U.S. tariffs lead to higher prices for the metal. Arcelor reported a 42 percent year-on-year increase in third-quarter core profit (EBITDA) to $2.73 billion (2.11 billion pounds), roughly in-line with analyst expectations, while sales rose 5 percent to $18.5 billion. The steel market has been impacted this year by the 25 percent import tariffs put in place by U.S. President Donald Trump to try to reduce imports from China and Europe.
Lakshmi Mittal became the CEO of ArcelorMittal (AMS:MT) in 1976. This analysis aims first to contrast CEO compensation with other large companies. Next, we’ll consider growth that the business demonstrates. Read More...
Net profit at the Luxembourg-based steelmaker was $899 million compared with $1.21 billion a year earlier. ArcelorMittal also said it has completed the takeover of Italy’s Ilva SpA, which will be folded into the group’s European flat products unit and will now be known as ArcelorMittal Italia.
1 November 2018 – ArcelorMittal (‘the Company’) announces that AM Investco Italy Srl (‘AM Investco’)’s transaction to acquire Ilva S.p.A. (‘Ilva’) has completed today. ArcelorMittal is the principal partner in AM Investco with a 94.4 per cent equity stake in the consortium, with Banca Intesa Sanpaolo holding 5.6 per cent. AM Investco’s lease and purchase agreement is effective from today (1 November 2018). Following completion of the transaction, ArcelorMittal has now assumed full management control of Ilva, which will form a new business cluster within ArcelorMittal Europe - Flat Products and be known as ArcelorMittal Italia.
Luxembourg, November 1, 2018 - ArcelorMittal (referred to as “ArcelorMittal” or the “Company”) (MT (New York, Amsterdam, Paris, Luxembourg), MTS (Madrid)), the world’s leading.
’s planned purchase of a steelworks in the Czech Republic has run into opposition, after local trade unions wrote to European regulators objecting to the deal over concerns about its plans for the business.
Benjamin Graham’s amusing analogy — of a nervy “business partner” — helped explain the unpredictable nature of bourses. ArcelorMittal’s underlying profits from steel have more than doubled since 2016. Mr Graham appreciated cheap stocks, such as ArcelorMittal.
Steel imports are a key indicator that investors should follow. US steel companies like U.S. Steel (X), AK Steel (AKS), and Nucor (NUE) see unfairly traded steel products as their major challenge. The steel industry got a major reprieve when President Trump imposed a 25% tariff on US steel imports in March.
FRANKFURT/BENGALURU (Reuters) - By opening a deeper investigation into Thyssenkrupp's planned steel joint venture with Tata Steel, the European Commission (EC) raised expectations on Wednesday they will have to sell assets to win its approval. Tata Steel shares fell by as much as 6.2 percent on Wednesday, with analysts pointing to potential delays to the deal, which would create Europe's second-largest steelmaker after ArcelorMittal. Thyssenkrupp, whose shares were 3.3 percent higher at 18.725 euros at 1129 GMT, and Tata Steel plan to combine their steel activities in Germany, the Netherlands and Britain.
BRUSSELS/FRANKFURT, Oct 30 (Reuters) - The European Commission has opened a deeper investigation into Thyssenkrupp's planned steel joint venture with Tata Steel over concerns that it could raise prices and harm competition. The so-called Phase II investigation was widely expected and follows a similar probe into ArcelorMittal's takeover of Italy's Ilva, which was cleared only after the group pledged to sell assets. Thyssenkrupp and Tata Steel earlier this year unveiled plans to combine their steel activities in Germany, the Netherlands and Britain to become the continent's second-largest steelmaker after ArcelorMittal.