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ArcelorMittal Q2 net income falls 2% to $3,923 million

The company had posted a net income of $4,005 million in the corresponding period last year.

July 28, 2022 / 02:59 PM IST
Essar Steel case: The Supreme Court cleared ArcelorMittal's takeover of Essar Steel. The judgement is key because it is likely to help facilitate the biggest takeover of bad debts in Indian corporate history. It also ruled that the Committee of Creditors will have the final say in the resolution plans under the Insolvency and Bankruptcy Code (IBC) and that the National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT) cannot interfere with CoC’s commercial decisions.

Essar Steel case: The Supreme Court cleared ArcelorMittal's takeover of Essar Steel. The judgement is key because it is likely to help facilitate the biggest takeover of bad debts in Indian corporate history. It also ruled that the Committee of Creditors will have the final say in the resolution plans under the Insolvency and Bankruptcy Code (IBC) and that the National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT) cannot interfere with CoC’s commercial decisions.

ArcelorMittal on Thursday posted a 2 per cent decline in its net income at $3,923 million for the second quarter ended June 30, 2022.

The company had posted a net income of $4,005 million in the corresponding period last year.

The Luxembourg-headquartered integrated steel and mining company follows the January-December fiscal year.

In a statement, ArcelorMittal said sales were at $22.1 billion in April-June quarter of 2022, as compared to $19.3 billion in the second quarter in 2021.

The company said that total steel shipments in the second quarter of 2022 were lower at 14.4 million tonnes (MT), compared to 16.1 MT in the corresponding quarter of the preceding year.

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"Steel shipments in 2Q 2022 were… largely reflecting the impact of the conflict in Ukraine… and weaker shipments in Europe,” it said.

Gross debt increased to $8.8 billion as of June 30, 2022, as compared to $8.7 billion as of March 31, 2022 and $8.4 billion as of December 31, 2021.

"The period was overshadowed by the outbreak of war in Ukraine, where we have steel and mining operations, bringing instability and suffering to the country and our 26,000 employees,” Aditya Mittal, ArcelorMittal Chief Executive Officer, said.

Globally the conflict is impacting growth and adding further inflationary pressure, which is spilling over into weakening of demand.

"Despite the more uncertain global macro outlook, our business is well positioned to effectively manage through the cycle,” he said.
PTI
first published: Jul 28, 2022 02:59 pm
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