ArcelorMittal Closes Issuance Of Notes Under EMTN Program

ArcelorMittal (NYSE:MT) issued €750-million 1% notes due May 19, 2023, and €750-million 1.75% notes due Nov 19, 2025.

The notes were issued under the company’s €10-billion wholesale Euro Medium Term Notes (EMTN) Program.

ArcelorMittal plans to use the proceeds from the issuance for general corporate purposes, including the refinancing of its existing debt.

The company’s shares have tumbled 32.4% in the past year compared with a 21.7% decline of the industry.

It incurred net loss of $539 million or 53 cents per share in third-quarter 2019 against net income of $899 million or 89 cents per share in the year-ago quarter. Its loss per share was wider than the Zacks Consensus Estimate of a loss of 29 cents.

The company’s revenues were $16,634 million in the quarter, down 10.2% year over year. Moreover, the top line lagged the Zacks Consensus Estimate of $16,655.5 million.

At the end of the third quarter, ArcelorMittal had cash and cash equivalents of $3.6 billion, up from $2.5 billion in the prior-year quarter. The company’s long-term debt was around $11 billion, up roughly 32.5% year over year.

ArcelorMittal revised expectations for global apparent steel consumption (ASC) growth for 2019. It now expects global ASC growth of 0.5-1% compared with 0.5-1.5% growth mentioned earlier.

For the United States, the company expects a decline in ASC of 0.5-1% compared with flat to 1% growth stated previously. In Europe, it anticipates ASC decline of 3% compared with a 1-2% decrease mentioned earlier.

For Brazil, the company expects rise in ASC of 0.5-1%, down from 1.5-2.5% growth stated earlier. For China, it expects overall ASC growth of 1.5-2%, up from 0.5-1.5% mentioned previously.

ArcelorMittal Price and Consensus

Zacks Rank & Stocks to Consider

ArcelorMittal currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Impala Platinum Holdings Ltd. (OTC:IMPUY) , Franco-Nevada Corporation (TSX:FNV) and Agnico Eagle Mines Limited (NYSE:AEM) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Impala Platinum has an expected earnings growth rate of 255.2% for the current fiscal year. The company’s shares have surged 234.6% in the past year.

Franco-Nevada has a projected earnings growth rate of 46.2% for 2019. The company’s shares have rallied 40.2% in a year.

Agnico Eagle has an estimated earnings growth rate of 168.6% for the current year. Its shares have moved up 62.5% in the past year.

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