ArcelorMittal(US:MT)2025-03-10 17:31Financial Performance - ArcelorMittal reported sales of $62.4 billion for the year ended December 31, 2024, an 8.5% decrease from $68.3 billion in 2023, primarily due to a 7.6% decline in average steel selling prices and a 2.4% decrease in steel shipments [943]. - Operating income for 2024 was $3.31 billion, a significant increase from $2.34 billion in 2023, despite lower sales [929]. - Operating income for the year ended December 31, 2024, was $3.3 billion, an increase of 43.5% compared to $2.3 billion in 2023, despite challenges from illegal blockades and lower iron ore prices [953]. - Income from investments in associates, joint ventures, and other investments decreased to $779 million for the year ended December 31, 2024, from $1,184 million in 2023, affected by lower contributions from AMNS India [996]. - ArcelorMittal's net income attributable to equity holders of the parent was $1.3 billion in 2024, compared to $0.9 billion in 2023 and $9.3 billion in 2022 [1045]. Sales and Shipments - Steel shipments decreased by 2.4% to 54.3 million tonnes in 2024 compared to 55.6 million tonnes in 2023; on a comparable basis, shipments were 1.7% higher when excluding Kazakhstan operations [933]. - Average steel selling prices fell by 7.6% in 2024 compared to 2023, consistent with international price trends [936]. - The North America segment reported sales of $11.9 billion in 2024, a decrease from $13.0 billion in 2023, with operating income dropping to $1.31 billion from $1.92 billion [929]. - The Europe segment's sales fell to $29.95 billion in 2024 from $31.7 billion in 2023, with operating income decreasing to $386 million from $879 million [929]. - Sustainable Solutions segment sales were $10.72 billion in 2024, down from $11.47 billion in 2023, with operating income declining to $57 million from $225 million [929]. Production and Costs - Total iron ore production increased by 1.1% to 42.4 million tonnes in 2024, up from 42.0 million tonnes in 2023 [940]. - Cost of sales for 2024 was $56.7 billion, down from $63.5 billion in 2023, driven by lower raw material costs [946]. - Energy costs for the year ended December 31, 2024, totaled $5.858 billion, a decrease of 14.0% from $6.815 billion in 2023, and represented 10% of cost of sales [949]. - Crude steel production in North America decreased by 13.6% to 7.5 million tonnes in 2024, impacted by illegal blockades, resulting in an estimated loss of 800,000 tonnes of production [956]. - Crude steel production in Brazil increased by 4.0% to 14.5 million tonnes in 2024, driven by the consolidation of ArcelorMittal Pecém [968][970]. Debt and Financing - As of December 31, 2024, ArcelorMittal's total debt was $11.6 billion, an increase from $10.7 billion in 2023 [1052]. - Net debt rose to $5.1 billion in 2024 from $2.9 billion in 2023, reflecting an increase in long-term and short-term debt [1053]. - The company signed a new $5.5 billion revolving credit facility on May 29, 2024, maturing in 2029, replacing the previous facility [1066]. - The repayment schedule for total gross debt as of December 31, 2024, includes $2.7 billion in 2025 and $1.3 billion in 2026 [1061]. - Gearing ratio (net debt divided by total equity) increased to 10% in 2024 from 5% in 2023 [1047]. Cash Flow and Investments - For the year ended December 31, 2024, net cash provided by operating activities decreased to $4.9 billion, compared to $7.6 billion in 2023 and $10.2 billion in 2022 [1083][1085]. - Capital expenditures for the year ended December 31, 2024, were $4.4 billion, with expectations for 2025 capital expenditures to remain in the range of $4.5 to $5.0 billion [1087][1090]. - Net cash used in investing activities was $5.0 billion for the year ended December 31, 2024, down from $5.8 billion in 2023 [1087][1096]. - The Company repurchased 78 million shares for a total value of $2.0 billion by December 31, 2024, representing 92% of the current share buyback program [1079]. - Dividend payments for the year ended December 31, 2024, totaled $580 million, compared to $531 million in 2023 and $663 million in 2022 [1105]. Market Risks - The company is exposed to various market risks, including fluctuations in raw material prices and foreign currency exchange rates [1108]. - ArcelorMittal's foreign currency translation risk could significantly impact its consolidated financial statements due to the translation of subsidiaries' financials denominated in currencies other than the U.S. dollar [1120]. - The company has implemented strict policies to manage financial market risks, overseen by the CEO and CFO [1111].