ArcelorMittal Reports Huge Q4 Loss Amidst Challenging Market

SEATTLE (Scrap Monster): Luxembourg-headquartered leading steelmaker ArcelorMittal announced results for the three-month and twelve-month periods ended December 31, 2019. The company reported net loss in excess of $2.4 billion during the year, with Q4 accounting for almost $1.8 billion of the loss. ArcelorMittal noted that the yearly loss was mainly due to challenging market conditions.

The company generated $2.4 billion free cash flow during the previous year. It ended 2019 with gross debt of $14.3 billion and net debt of $9.3 billion. The reported net debt was the lowest level since the merger. The results included financials related to completion of acquisition of Essar Steel in partnership with Nippon Steel.

ArcelorMittal expressed optimism for 2020. There are clear signs of real demand slowdown beginning to stabilize. The apparent steel consumption in core markets are expected to see marked improvement during this year.

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Commenting on the results, Mr. Lakshmi N. Mittal, Chairman and CEO, ArcelorMittal observed that 2019 was a very tough year for the company, primarily on account of the challenging market. However, encouraging early signs of improvement are visible in core markets, especially in the U.S., Europe and Brazil. The low inventory levels, coupled with market recovery should result in improved pricing, he added.