ArcelorMittal Raises Share Buyback Plan By $1 Billion

ArcelorMittal has a good amount of financial results for the third quarter

ArcelorMittal, the world’s largest steelmaker, announced Thursday that it has augmented its share buyback program by an additional $1 billion after reporting its strongest quarter in more than a decade.

This increase will bring an ROI of $6 billion announced after September 2020. The buyback program currently has a provision of $1.8 billion.

Arcelor said global steel demand is expected to grow 12-13% this year, except in China, where real demand is weak.

Regarding the real estate sector in China, we currently expect steel demand in China to shrink slightly in 2021.

At 9:55 am, the share price was up 3.93% to EUR 28.43. Interest, taxes, depreciation, and earnings before depreciation (EBITDA), the most significant third-quarter on the market, rose $6.06 billion, about six times from the previous quarter.

That’s just below the median estimate of $6.15 billion returned in the company survey.

“The third-quarter results continue to be driven by a strong pricing environment that resulted in the highest net profit and lowest net debt since 2008,” said Adizua Mittal, CEO, in a statement. determined.

The company added that this was the strongest quarter of 2008, up 19.9% ​​from the previous three months.

ING analyst Stijn Demeester said: “This was due to a significant increase in steel prices and steel spreads, but also a combination of car order cancellations, delivery delays and production cuts due to rising energy prices. This contrasts with a 9% volume reduction. “..

According to the company, net debt fell to US$3.9 billion, the lowest level since 2006, from US$5 billion at the end of the previous quarter.

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