ArcelorMittal(US:MT) Newsfilter·2024-05-02 05:00Core Insights - ArcelorMittal reported a significant recovery in financial performance for Q1 2024, with net income of $0.9 billion compared to a net loss of $3.0 billion in Q4 2023, driven by improved steel prices and shipment volumes [2][15][14] - The company is focused on organic growth through strategic capital expenditures, aiming to enhance EBITDA potential by approximately $1.8 billion by the end of 2026 [3][34] - Health and safety remain a top priority, with ongoing audits aimed at achieving zero serious injuries and fatalities [2][9] Financial Performance - Q1 2024 sales increased by 11.9% to $16.3 billion from $14.6 billion in Q4 2023, attributed to higher average steel selling prices (+4.8%) and increased steel shipment volumes (+1.4%) [14][15] - EBITDA for Q1 2024 rose by 34.6% to $1.956 billion compared to $1.454 billion in Q4 2023, reflecting improved results across North America, Brazil, Europe, and India [14][15] - The company experienced a free cash outflow of $1.4 billion in Q1 2024 due to seasonal working capital needs and capital expenditures [16] Operational Highlights - Steel shipments increased by 5.0% in Q1 2024 compared to Q4 2023, with crude steel production reaching 14.4 million tonnes [2][41] - The company has made strategic investments in growth projects, including a 28% stake acquisition in Vallourec for approximately $1.1 billion, enhancing its position in the value-added tubular market [3][34] - The company’s net debt increased to $4.8 billion at the end of Q1 2024, up from $2.9 billion at the end of Q4 2023, primarily due to seasonal working capital investments [16] Regional Performance - North America saw a 13.8% increase in sales to $3.3 billion in Q1 2024, driven by higher average steel selling prices and increased shipments [19] - In Brazil, sales rose by 12.6% to $3.1 billion, although steel shipments declined by 10.7% due to seasonal inventory build and lower domestic demand [21] - Europe reported an 18.4% increase in sales to $7.8 billion, attributed to improved shipment volumes following destocking [24] Strategic Initiatives - The company is advancing its decarbonization projects, including a 1GW renewables project in India and the Vega CMC project in Brazil, expected to commence operations in H1 2024 [3][7] - ArcelorMittal plans to maintain a minimum of 50% return of post-dividend free cash flow to shareholders through share buyback programs [3][34] - The company is also focused on producing low-carbon steel, with plans to showcase its XCarb® products during the Paris Olympics [7][34]