Luxembourg, July 29, 2021 – Today, ArcelorMittal (“ArcelorMittal” or the “Company”), the world’s leading integrated steel and mining company (MT (New York, Amsterdam, Paris, Luxembourg)), MTS (Madrid)) announced the results of three – and six-month periods ending June 30, 20211,2.
Note. As previously announced, beginning in the second quarter of 2021, ArcelorMittal has revised the presentation of its reportable segments to display only AMMC and Liberia operations in the mining segment. All other mines are accounted for in the steel segment, which they mainly supply. From the second quarter of 2021, ArcelorMittal Italia will be spun off and accounted for as a joint venture.
Aditya Mittal, CEO of ArcelorMittal, commented: “In addition to our half-year results, today we released our second climate action report, which demonstrates our intention to be at the forefront of the .Zero Internet transition in our industry. The intentions are reflected in the new targets announced in the report – a new group-wide target to reduce carbon emissions by 25% by 2030 and an increased target for our European operations by 35% by 2030. These goals are the most ambitious in our industry. and build on the progress we’ve already made this year. In recent weeks, we announced that ArcelorMittal plans to build the world’s #1 full-scale zero-carbon steel plant. Earlier this year, we launched XCarb™, a new brand for all of our initiatives to reduce carbon emissions, including Green Steel13 certifications, low carbon products and the XCarb™ Innovation Fund, which invests in new technologies related to decarburization of the steel industry. The decade will be critical and ArcelorMittal is committed to working with stakeholders in the regions where we operate to learn how to act quickly.”
“From a financial standpoint, the second quarter saw a continued strong recovery while inventory remained subdued. This resulted in healthier spreads in our core markets than in the first three months of the year, confirming our better reporting since 2008. Quarterly and semi-annual results.This allows us to further improve our balance sheet and meet our obligation to return cash to shareholders.Our results are clearly welcome after the unprecedented disruptions that the business and our employees have experienced in 2020. I want more Thank you once again to all of our employees for tackling this volatility and being able to quickly resume production to maximize productivity.Take advantage of the current exceptional market conditions.”
“Looking ahead, we see a further improvement in the demand forecast in the second half of the year and have therefore revised our steel consumption forecast for this year.”
Health and Safety – Frequency of Lost Time for Own Staff and Workplace Injury to Contractors Protecting the health and well-being of employees remains a top priority for the company by continuing to strictly adhere to World Health Organization (COVID-19) guidelines and following specific government directives and implemented. We continue to ensure close monitoring, strict hygiene and social distancing measures in all operations and telecommuting where possible, as well as the provision of necessary personal protective equipment for our employees.
Occupational health and safety performance based on own and contractor lost time injury rate (LTIF) in Q2 2021 (“Q2 2021”) was 0.89 times Q1 2021 (“Q1 2021”) 0.78x. data for the December 2020 sale of ArcelorMittal USA has not been restated and does not include ArcelorMittal Italia for all periods (now accounted for using the equity method).
Health and safety indicators for the first six months of 2021 (“1H 2021”) were 0.83x compared to 0.63x for the first six months of 2020 (“1H 2020”).
The company’s efforts to improve health and safety performance are focused on improving the safety of its employees with an absolute focus on eliminating fatalities.
Changes have been made to the company’s executive compensation policy to reflect the new focus on safety. This includes a significant increase in the proportion of short-term incentives related to safety, as well as tangible links to broader ESG topics in long-term incentives.
On July 21, 2021, ArcelorMittal announced the completion of its second investment in the newly launched XCarb™ Innovation Fund as the lead investor in a $200 million Series D Form Energy funding, generating $25 million. Form Energy was founded in 2017 to accelerate the development of a revolutionary low-cost energy storage technology for a year-round reliable, secure and fully renewable grid. In addition to the $25 million investment, ArcelorMittal and Form Energy have signed a joint development agreement to explore ArcelorMittal’s potential to provide Form Energy with customized iron as a raw material for battery production.
Results for the six months ended June 30, 2021 and analysis of the results for the six months ended June 30, 2020: 34.3 tonnes half-year, down 5.2%. Cliffs on December 9, 2020 and ArcelorMittal Italia14, merged from April 14, 2021), which rose by 13.4% as economic activity recovered. ), Brazil +32.3%, ACIS +7.7% and NAFTA +18.4% (range-adjusted).
Sales in the first half of 2021 increased by 37.6% to $35.5 billion compared to $25.8 billion in the first half of 2020, mainly due to higher average realized steel prices (41.5% ), partly funded by ArcelorMittal USA and ArcelorMittal Italia. off.
Depreciation of $1.2 billion in the first half of 2021 was broadly stable on a volume-adjusted basis compared to $1.5 billion in the first half of 2020. FY 2021 depreciation charges are expected to be approximately $2.6 billion (based on current exchange rates).
There were no impairment charges in the first half of 2021. Impairment losses in the first half of 2020 amounted to USD 92 million due to the permanent closure of the coking plant in Florence (France) at the end of April 2020.
1H 2021 No special items. Specialty goods in the first half of 2020 were $678 million due to NAFTA and stock-related fees in Europe.
Operating profit of $7.1 billion in 1H 2021 was mainly driven by a positive impact on steel costs (due to higher demand coupled with a significant increase in steel spreads, supported by destocking and not fully reflected in results due to lagging orders) and improved iron ore prices. reference price (+100.6%). An operating loss of US$600 million in the first half of 2020 was primarily attributable to the aforementioned impairments and exceptional items, as well as lower steel spreads and iron ore market prices.
Revenue from associates, joint ventures and other investments was $1.0 billion in the first half of 2021, compared to $127 million in the first half of 2020. Significantly higher revenue in the first half of 2021 in annual dividends from Erdemir of US$89 million, driven by higher contributions from AMNS India8, AMNS Calvert (Calvert)9 and other investees. COVID-19 adversely impacted revenue from associates, joint ventures and other investments in 1H 2020.
Net interest expense in the first half of 2021 was $167 million compared to $227 million in the first half of 2020 after debt repayment and liability management. The company still expects net interest expense for all of 2021 to be approximately $300 million.
Foreign exchange and other net financial losses were $427 million in the first half of 2021, compared to a loss of $415 million in the first half of 2020.
ArcelorMittal’s income tax expense in H1 2021 was US$946 million (including US$391 million in deferred tax credits) compared to US$524 million in H1 2020 (including US$262 million in deferred tax credits). benefits) and income tax expenses).
ArcelorMittal’s net income for the first half of 2021 was $6.29 billion, or basic earnings per share, of $5.40, compared to a net loss of $1.679 billion, or basic loss per common share, of $1. $57 in the first half of 2020.
Analysis of Q2 2021 results compared to Q1 2021 and Q2 2020 Adjusted for changes in volume (i.e. excluding shipments of ArcelorMittal Italy 14), steel shipments increased in Q2 2021 up 2.4% from 15.6 metric tons in the first quarter of 2021 as economic activity increases. resumed after a continued slowdown. Shipments increased consistently across all segments: Europe +1.0% (range adjusted), Brazil +3.3%, ACIS +8.0% and NAFTA +3.2%. Range-adjusted (excluding ArcelorMittal in Italy and ArcelorMittal in the US), total steel shipments in Q2 2021 were 16.1 tonnes, +30.6% more than Q2 2020: Europe +32 .4% (range-adjusted); NAFTA +45.7% (range adjusted); ACIS +17.0%; Brazil +43.9%.
Sales in the second quarter of 2021 were $19.3 billion compared to $16.2 billion in the first quarter of 2021 and $11.0 billion in the second quarter of 2020. Compared to 1Q 2021, sales increased by 19.5%, mainly due to higher average realized steel prices (+20.3%), due to lower shipments from POX (mainly due to a 4-week strike and the subsequent impact of full operating activities) is partially offset by lower mining revenues. Compared to the second quarter of 2020, sales in the second quarter of 2021 increased by +76.2%, mainly due to higher average realized steel prices (+61.3%), higher steel shipments (+8.1%) and significantly higher iron ore prices. base price (+114%), which is partially offset by a decrease in iron ore shipments (-33.5%).
Depreciation in the second quarter of 2021 was $620 million compared to $601 million in the first quarter of 2021, significantly lower than the $739 million in the second quarter of 2020 2020 in the sale of ArcelorMittal USA).
There are no special items for Q2 2021 and Q1 2021. Special items of $221 million in the second quarter of 2020 included expenses related to NAFTA stockpiles.
Operating profit for the second quarter of 2021 was $4.4 billion compared to $2.6 billion in the first quarter of 2021, and an operating loss for the second quarter of 2020 was $253 million (including special items mentioned above). The increase in operating profit in the second quarter of 2021 compared to the first quarter of 2021 reflected the positive impact of the steel business on price costs, with improved steel shipments (range-adjusted) offset by weaker performance in the mining segment (decrease due to reduced iron ore supply) is partly offset by higher iron ore reference prices).
Revenue from associates, joint ventures and other investments in the second quarter of 2021 was $590 million compared to a loss of $453 million in the first quarter of 2021 and a loss of $15 million in the second quarter of 2020. Q2 2021 saw strong growth of 15% driven by improved results from AMNS India8, Calvert9 and Chinese investors, while Q1 2021 also generated $89 million in dividend income from Erdemir.
Net interest expense in the second quarter of 2021 was $76 million compared to $91 million in the first quarter of 2021 and $112 million in the second quarter of 2020, mainly due to post-redemption savings.
Foreign exchange and other net financial losses in the second quarter of 2021 were $233 million compared to a loss of $194 million in the first quarter of 2021 and a profit of $36 million in the second quarter of 2020.
In the second quarter of 2021, ArcelorMittal recorded an income tax expense of $542 million (including deferred tax income of $226 million) compared to $404 million in the first quarter of 2021 (including deferred tax income of $165 million). million USD). ) and $184 million (including $84 million in deferred tax) in the second quarter of 2020.
ArcelorMittal’s net income in the second quarter of 2021 was $4.005 billion (basic earnings per share of $3.47) compared to $2.285 billion (basic earnings per share of $1.94) in the first quarter of 2020. Net loss for the second quarter of the year was $559 million (basic loss per common share of $0.50).
As previously announced, as the company is taking steps to streamline and streamline its operations, the primary responsibility for self-sustaining mining has shifted to the steel sector (which is the main consumer of the mine’s products). The Mining segment will be primarily responsible for ArcelorMittal Mining Canada (AMMC) and Liberia operations and will continue to provide technical support to all mining operations within the group. As a result, from the second quarter of 2021, ArcelorMittal has revised the presentation of its reportable segments in accordance with IFRS requirements to reflect this organizational change. The mining sector only reports on AMMC and Liberia activities. Other mines are included in the steel segment, which they mainly supply.
Crude steel production in the NAFTA segment rose 4.5% to 2.3t in the second quarter of 2021 from 2.2t in the first quarter of 2021 as demand improved and operations in Mexico resumed after the previous quarter they were interrupted by bad weather.
Shipments of steel in the second quarter of 2021 increased by 3.2% to 2.6 tons compared to 2.5 tons in the first quarter of 2021. Adjusted range (excluding the impact of ArcelorMittal USA sold in December 2020), steel shipments in the second quarter of 2021 increased by +45.7% compared to the second quarter of 2020 affected by COVID-19, compared to 1, 8 million tons.
Sales in the second quarter of 2021 increased by 27.8% to $3.2 billion compared to $2.5 billion in the first quarter of 2021, mainly due to a 24.9% increase in average realized steel prices and an increase in steel shipments (as noted above).
Special items for 2Q21 and 1Q21 are equal to zero. Special items of expenditure in the second quarter of 2020 amounted to $221 million related to inventory costs.
Operating profit for the second quarter of 2021 was $675 million compared to $261 million in the first quarter of 2021, and an operating loss for the second quarter of 2020 was $342 million, which was impacted by the aforementioned special items and the COVID-19 pandemic.
EBITDA in the second quarter of 2021 was $746 million compared to $332 million in the first quarter of 2021, mainly due to the aforementioned positive price cost effect and increased shipments, as well as the impact of previous severe weather conditions on our business period in Mexico. influence. EBITDA in the second quarter of 2021 was higher than $30 million in the second quarter of 2020, mainly due to significant positive pricing effects.
The share of crude steel production in Brazil increased by 3.8% to 3.2 t in the second quarter of 2021 compared to 3.0 t in the first quarter of 2021 and was significantly higher compared to 1.7 t in the second quarter 2020, when production was adjusted to reflect lower demand caused by COVID-19. -19 pandemic. 19 Epidemic.
Steel shipments in the second quarter of 2021 increased by 3.3% to 3.0 mt compared to 2.9 mt in the first quarter of 2021, mainly due to a 5.6% increase in shipments of thick rolled products (increase in exports) and increase in shipments of long products (+0.8%). ). Steel shipments increased by 44% in the second quarter of 2021 compared to 2.1 million tonnes in the second quarter of 2020, driven by increased sales of both flat and long products.
Sales in the second quarter of 2021 rose 28.7% to $3.3 billion from $2.5 billion in the first quarter of 2021 as average realized steel prices rose by 24.1% and steel shipments increased by 3 .3%.
Operating income for the second quarter of 2021 was $1,028 million compared to $714 million in the first quarter of 2021 and $119 million in the second quarter of 2020 (due to the impact of the COVID-19 pandemic).
EBITDA increased by 41.3% to $1,084 million in the second quarter of 2021 compared to $767 million in the first quarter of 2021, mainly due to a positive price impact on cost and increased steel shipments. EBITDA in the second quarter of 2021 was significantly higher than the $171 million in the second quarter of 2020, mainly due to a positive impact on the price and an increase in steel shipments.
Part of the European production of crude steel fell by 3.2% to 9.4 tons in Q2. 2021 compared to 9.7 tons in 1 sq. 2021 and was higher compared to 7.1 tons in Q2. 2020 (influenced by COVID-19). pandemic). ArcelorMittal canceled the combined assets in mid-April 2021 following the formation of a public-private partnership between Invitalia and Acciaierie d’Italia Holding, an affiliate under the ArcelorMittal Ilva lease and purchase agreement and liabilities. Band-adjusted, crude steel production increased by 6.5% in the second quarter of 2021 compared to the first quarter of 2021, mainly due to the restart of Blast Furnace No. B in Ghent, Belgium in March, as stocks slabs have been cut to maintain rolling use. Steel shipments in the second quarter of 2021 decreased by 8.0% to 8.3 tons compared to 9.0 tons in the first quarter of 2021. Volume-adjusted, excluding ArcelorMittal Italy, steel shipments increased by 1%. Steel shipments in the second quarter of 2021 increased by 21.6% (adjusted for a range of 32.4%) compared to 6.8 metric tons in the second quarter of 2020 (driven by COVID-19), with flat and section steel shipments rentals have increased.
Sales in the second quarter of 2021 increased by 14.1% to $10.7 billion compared to $9.4 billion in the first quarter of 2021, mainly due to a 16.6% increase in average realized prices (flat products +17 .4% and long products +15.2%).
Operating income in the second quarter of 2021 was $1.262 billion, compared to an operating income of $599 million in the first quarter of 2021 and an operating loss of $228 million in the second quarter of 2020 (as affected by the COVID-19 pandemic).
EBITDA in the second quarter of 2021 was $1.578 billion, almost double from $898 million in the first quarter of 2021, mainly due to the positive impact of price on cost. EBITDA increased significantly in the second quarter of 2021 compared to $127 million in the second quarter of 2020, mainly due to the positive impact of price on cost and increased steel shipments.
Crude steel production in the ACIS segment increased by 10.9% to 3.0 tons in the second quarter of 2021 compared to 2.7 tons in the first quarter of 2021, mainly due to improved production performance in South Africa. Crude steel production in Q2 2021 increased by 52.1% compared to 2.0 t in Q2 2020, mainly due to the introduction of COVID-19 related quarantine measures in South Africa in Q2 2020 G.
Steel shipments in the second quarter of 2021 increased by 8.0% to 2.8 tons compared to 2.6 tons in the first quarter of 2021, mainly due to improved operating performance, as described above.