FX.co ★ ArcelorMittal Q1 Results Down; Remains Positive On Medium/long-term Steel Demand Outlook

Steel and mining giant ArcelorMittal S.A. released its first-quarter report, detailing a decrease in net income. The income, attributed to the company's equity holders, plunged from $1.10 billion last year to $938 million.

The company reported a lower basic earnings per share, which came in at $1.16, a decrease from the previous $1.28 per share recorded a year prior. The operating income also saw a drop, nose-diving from last year's $1.19 billion to $1.07 billion. The EBITDA similarly fell, from $2.14 billion last year to $1.96 billion.

The quarter's sales suffered a fall as well, with the total earnings sliding from the previous year's $18.50 billion to $16.28 billion. In terms of production, the company reported decreased figures in crude steel production at 14.4 million tonnes, steel shipments at 13.5 million tonnes, and total Group iron ore production at 10.2 million tonnes – all were less compared to the previous year's output.

However, ArcelorMittal announced it would maintain a minimum return of 50% post-dividend FCF to its shareholders through its share buyback programs. The base dividend for the fiscal year 2023, which is set at $0.50 per share, will be divided into two equal payments due in June and December 2024.

Looking to the future, the company showed optimism, maintaining a positive stance on the medium to long-term demand for steel. ArcelorMittal expressed confidence in its strategy for growth, while ensuring returns on capital.