ArcelorMittal Profits Plunge in Q1

ArcelorMittal faced a number of challenges that impacted earnings in the first quarter resulting in net income plunging 66 percent to $414 million from $1.19 billion reported in both the fourth quarter of 2018 and first quarter of 2019. Earnings reflected a $150 million impairment charge related to the sale of assets to acquire ArcelorMittal Italia. EBITDA of $1.7 billion fell 15.3 percent from Q4 2018 and 34.2 percent year-over-year.

“Our first quarter results reflect the challenging operating environment the industry has faced in recent months,” said Chairman and CEO Lakshmi Mittal. “Profitability has been impacted by lower steel pricing due to weaker economic activity and continued global overcapacity, as well as rising raw material costs as a result of supply-side developments in Brazil. We continue to face a challenge from high levels of imports, particularly in Europe, where safeguard measures introduced by the European Commission have not been fully effective.”