Luxembourg-based ArcelorMittal, the world's largest steelmaker, has announced its financial results for the first quarter this year. Regarding the 2014 outlook, ArcelorMittal has lowered its global steel demand growth guidance to 3-3.5 percent from its earlier guidance of 3.5-4 percent, while the company expects 3-4 percent steel demand growth for China, with the CIS region steel demand forecast to contract by as much as two percent in the current year.
In the first quarter, ArcelorMittal saw a net loss of $205 million, compared to a net loss of $345 million in the corresponding quarter of the previous year. During the given quarter, the company's sales increased slightly by 0.2 percent year on year to $19.8 billion. Total steel shipments amounted to 21 million mt, rising by 2.4 percent year on year. In the given period, ArcelorMittal's EBITDA increased by 12.07 percent to $1.75 billion, compared to the first quarter of 2013.
ArcelorMittal's crude steel production amounted to 23 million mt in the first quarter, up 2.7 percent year on year, while its iron ore production increased by 13 percent to 14.8 million mt, compared to the first quarter of the previous year.
ArcelorMittal expects its steel shipments to increase by approximately three percent in 2014 compared to 2013, while iron ore shipments are expected to increase by approximately 15 percent. ArcelorMittal's iron ore price assumption remains at approximately $120/mt for 62 percent Fe CFR China.
Meanwhile, ArcelorMittal's Flat Carbon Europe segment has reported an operating profit of €58 million for the first quarter of 2014, compared to an operating loss of €396 million in the fourth quarter of 2013, which was impacted by impairment and restructuring charges totaling €302 million. The Flat Carbon Europe segment's steel shipments for the given quarter increased by 5.6 percent to 10 million mt, while its crude steel production increased by 4.3 percent to 10.9 million mt, both compared to the previous quarter.