MT - ArcelorMittal's Q3 profits come under pressure from higher energy costs lower shipments

ArcelorMittal ( NYSE: MT ) was able to keep its Q3 revenue decline below analyst expectations, with a turnover of $18.98B (-6.2% Y/Y).

However, net income shrunk from $4.6B in Q3 2021 to $993M in the latest quarter. EBITDA too dropped by nearly a third to $638M, weighed down by a negative price-cost effect and lower steel shipments.

This quarter's EBITDA also saw a $31M contribution from the newly acquired Hot Briquetted Iron plant in Corpus Christi, Texas.

Steel shipments were down 5.5% Y/Y to 2.8M metric tons, with ArcelorMittal ( MT ) attributing the decline to weaker demand in Europe and the war in Ukraine, offset in part by higher NAFTA steel shipments.

Average steel selling prices were also down 4.9% in the quarter, leading to a 3.3% decline in sales to $3.5M in Q3.

CEO Aditya Mittal said: "“The strong market conditions enjoyed for much of the past two years deteriorated in the third quarter as seasonally lower shipments, a reduction in exceptional price levels, destocking and higher energy costs combined to put profits under pressure. The business responded quickly to the changing environment, cutting higher cost capacity to manage addressable demand and reduce fixed costs, and reducing European gas consumption by 30%."

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