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ArcelorMittal (NYSE:MT) experienced a 2.3% increase in pre-market trading on Thursday. This boost followed the release of Q4 earnings that surpassed expectations. Moreover, the company is projecting a substantial surge in steel demand for this year, with a notable growth tendency in India.
The Q4 EBITDA remained almost steady at $1.27B, slightly exceeding the anticipated $1.2B according to a consensus compiled by the company. However, the net loss for the quarter was $2.97B, a significant reversal from the $261M profit recorded in the corresponding period the previous year. This loss was attributed to a $1.41B impairment related to investments in Acciaierie d’Italia and a $2.43B charge resulting from the sale of operations in Kazakhstan.
Citi analysts suggested that the earnings beat for Q4 was propelled by surpassing predictions and average steel prices from Europe. They also noted that steel prices seemed to benefit from the upturn of spot prices in the latter part of the quarter.
ArcelorMittal (MT) indicated that it is observing initial signs of a rebound in steel demand as the destocking trend, experienced in Q3, mitigates. The company forecasts a 3%-4% growth in global steel demand outside China for this year, primarily propelled by the expansion in India, where demand is anticipated to rise by as much as 8.5%.
Jefferies analyst Cole Hathorn expressed cautious optimism about the company’s outlook, ascribing strong cash inflow in Q4 to supporting potential share buybacks of more than $1.2B, in contrast to the consensus of $1B for 2024.
