QUOTE AND NEWS
Automotive World  Feb 17  Comment 
Blake Zuidema, Director Automotive Product Application, ArcelorMittal has been confirmed as a speaker at Fuel Economy Detroit. Dr. Blake K. Zuidema is the director of automotive product applications at ArcelorMittal, the world’s largest steel...
Reuters  Feb 17  Comment 
A proposed joint venture between state-owned Steel Authority of India Ltd and ArcelorMittal SA to build an $897 million automotive steel plant in India has hit an impasse, with the two disagreeing on key terms, officials said.
Automotive World  Feb 16  Comment 
ArcelorMittal is to build its new global headquarters in Kirchberg, Luxembourg and has invited eight architecture firms to submit their designs for the building. The project confirms ArcelorMittal’s commitment to maintaining its presence in...
Financial Times  Feb 12  Comment 
Lakshmi Mittal concerned new rules will discriminate against European producers
Wall Street Journal  Feb 10  Comment 
Lakshmi Mittal, CEO of world’s largest steelmaker, says he hopes President Trump’s trade and infrastructure policies will boost the industry and help fend off the glut from China.
Automotive World  Feb 10  Comment 
ArcelorMittal today announces that it has received anti-trust approval from the European Commission with respect to the formation of a joint venture (JV), STEELCAME, with the Cellino Group. The formation of STEELCAME, in which ArcelorMittal will...
newratings.com  Feb 10  Comment 
LUXEMBOURG (dpa-AFX) - Shares of ArcelorMittal (MT) were gaining around 5 percent in the early morning trading after the steel and mining company reported Friday a profit in its fourth quarter, compared to last year's hefty loss, in the...
The Hindu Business Line  Feb 7  Comment 
When telecom czar Sunil Bharti Mittal said, “Battles will be fought on the street every day among the players,” to an interview with BusinessLine in December 2015, almost a year before the launch of ...
Automotive World  Jan 27  Comment 
ArcelorMittal announces that The Capital Group Companies Inc. has notified it of a decrease in its voting rights in ArcelorMittal from 5.4976% to 4.8054%. The notification is available on the Luxembourg Stock Exchange’s electronic database OAM...
The Economic Times  Jan 22  Comment 
Prabhu, who was accompanied by Railway Board chairman A K Mittal and other senior officials, also visited the accident site near Kuneru railway station




 

ArcelorMittal (NYSE:MT) is a steel producer.

Company Overview

History

ArcelorMittal was formed in 2006 by the merger of Arcelor and Mittal Steels. Previously, Mittal Steels produced the largest amount of steel by volume and Arcelor produced the second largest. After the merger, ArcelorMittal represents around 10% of the world's steel output.

Before the acquisition, Arcelor and Mittal Steels independently acquired various smaller companies, especially distressed steel making assets in Central and Eastern Europe[1]. After the acquisition, ArcelorMittal continues this strategy of horizontal integration. ArcelorMittal is now listed in the stock exchanges in New York, Paris, Amsterdam, Brussels, Luxembourg, and the Spanish stock exchanges. Its headquarters is located in Luxembourg.

CEO and the Board of Directors

ArcelorMittal's CEO is Lakshmi Mittal, currently the fourth richest man according to Forbes. He's a citizen of India who headed Mittal Steels before the acquisition. He's also a non-executive board member of Goldman Sachs.

ArcelorMittal has chosen an international board of directors, with members from France, India, Luxembourg, and other countries. ArcelorMittal maintains that these choices were made to reflect the wide array of international operations conducted by the company.

Financial Analysis[2]

ArcelorMittal's six business segments are Flat Carbon Americas, Flat Carbon Europe, Long Carbon Americas and Europe, AACIS, Stainless Steel, and Steel Solutions and Services.

Flat Carbon Americas (21.6% of total sales)

Flat Carbon Americas makes a range of flat carbon steel products, including slab, hot-rolled, cold-rolled and coated plates and sheets.

In North America, ArcelorMittal USA and ArcelorMittal Hamilton are the largest flat-rolled supplier in the United States and Canada respectively. ArcelorMittal USA is the largest plate producer in North America.

In South America, ArcelorMittal Tuburao and ArcelorMittal Lazaro Cardenas are the largest slab producers in Brazil and Mexico respectively.

Flat Carbon Europe (30.7% of total sales)

Like Flat Carbon Americas, Flat Carbon Europe makes a range of flat carbon steel products, including slab, hot-rolled, cold-rolled and coated plates and sheets. With major production facilities in Belgium, France, Germany and Spain, this segment is the largest supplier of steel sheets to the European automotive industry.

Long Carbon Americas and Europe (25.8% of total sales)

Long Carbon Americas and Europe makes a range of long carbon steel products, including rebars, rails, sections, sheet piles and wire rod. This segment is the world's largest producer of sections, sheet piles and wire rod.

AACIS (10.5% of total sales)

AACIS makes flat and long carbon steel products for Asia, Africa and the Commonwealth of Independent States. With major production facilities in Kazakhstan, South Africa and Ukraine, AACIS is the largest producer of steel products in Africa and one of the largest producers in Asian and the Commonwealth of Independent States.

Stainless Steel (6.7% of total sales)

As the name indicates, this segment of ArcelorMittal makes stainless steels, electrical steels and nickel alloys. With major production facilities in Belgium, Brazil and France, Stainless Steel is one of the world's largest producer of nickel alloys and the only producer of stainless and electrical steels in South America.

Steel Solutions and Services (18.5% of total sales)

Steel Solutions and Services offers a range of services from steel processing and engineering to technical consultancy and project management. With major facilities in Poland, the Czech Republic, Romania and Austria, Steel Solutions and Services in the world's largest steel distributor and processor.

Key Trends & Forces

Raw Materials Prices Affect Costs

ArcelorMittal consumes several resources with volatile prices, such as iron ore, coal, and scrap metal. ArcelorMittal produces 46% of its own iron ore and 13% of its own coal, but must buy the remainder from outside suppliers. ArcelorMittal has sold its less profitable plants to other companies in an attempt to downsize and cut costs.

Emerging Markets

ArcelorMittal's agenda includes capitalizing the productive power of the emerging markets of China and India. Although not yet specified how, ArcelorMittal is actively pursuing emerging markets and recognizing them as sources of profit.

ArcelorMittal has commented on a medium-term ambition to get to 200 million tonnes of annual steel production. With ArcelorMittal in 2009 at under 80 million tonnes of steel output and the next-largest acquisition targets each producing just 25-30 million tonnes of steel per annum, the most likely means of achieving this aim would seem to be:

  • Takeover of several large steel making competitors - including Baosteel, POSCO, Nippon Steel, JFE. The current ownership structures of these firms (which involve Government ownership e.g. for Baosteel) suggest this to be an unlikely scenario
  • Organic growth - where given the importance of the construction sector in steel consumption; and the increasing prominence of Asia in total steel demand - more probable strategic options may involve ArcelorMittal's pursuit of building design, building fabrication, steel distribution and erection joint ventures in countries such as China, Japan, India and Korea.


Competition

ArcelorMittal competes with:

References

  1. History of ArcelorMittal
  2. {{cite 10k|ticker=MT|year=2009|form=20-Yeah buddyyyyyyyyyyyyyy ===Business Segments<ref>{{cite 10k|ticker=MT|year=2009|form=20-F|link=http://www.wikinvest.com/stock/ArcelorMittal_(MT)/Filing/20-F/2010/F83672219|pg=79}}</li></ol></ref>
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki