27 June 2018Reading time: 2 minutes

The plan aims to grow profitability of ArcelorMittal. The effect of the plan generate higher profitability by USD 0.6 billion in 2017. Progress has been made on the asset optimization in the US and the transformation program of the company in Europe. ArcelorMittal deploys its cash surplus to reduced debt, the company aim to invest with discipline to generate future returns for shareholders.

The first quarter results of ArcelorMittal showed an EBITDA increase of 17.3% QoQ to EUR 2.5 billion. In relation with the output this performance represent an EBITDA at 118$/t of iron ore. The improvement in steel shipment volumes and soaring selling prices benefitted the company greatly, latter rose by 8.2% QoQ.

Recently, ArcelorMittal has launched a new concept bringing new edge of the use of steel in construction. This new concept called “steligence” is an approach that uses new modularized steel components in construction whenever it is possible. According to the company, this technology could allow 39% less costly foundation and 11% less costly facades, stairs and core elements compared to standard technology. Steligence is the result of several years of research to develop uses of steel in the construction industry specifically. This technology might create new business opportunities for the steelmaker from Luxemburg However the future development remains to be seen.

A majority of analyst give the stock a Buy advice. At this moment the share is traded for approximately EUR 27.30 (22.06.2018), the-high stock price in 2018 was (EUR 30.62). The future price of the share is subject to several political, industrial and sector specific as well as economic factors. Investors should consider such risk when making their investment decisions. Developments can be different at any time than investors expect, which can result in capital losses.

Vontobel products on ArcelorMittal are tradable at DEGIRO.

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18/02/2020 17:28:43