© AFP Archivbild
Although Arcelor Mittal is also struggling in these times of uncertainty, the steel giant has already reacted to its modest performances in the third quarter of the year and initiated ways to reduce costs.
Arcelor Mittal has published its report for the third quarter of 2022, which outlines that the company's profits (before taxes) almost decreased by half from the previous one to attain $2.7 billion. During Q3 of 2021, the steel giant registered profits of $6 billion.
Net profits amounted to just under $1 billion. In comparison, Q2 saw a net profit of $3.9 billion. That is a 78% in net income for the steel giant from Q2.
Between July and September last year, the company made $4.6 billion.
© Arcelor Mittal
After the first nine months of the year, Arcelor Mittal's net profits amounted to close to $9 billion, down from $11 billion for the same period in 2021. Gross profits, in comparison, were $13 billion in 2022 versus $14.2 billion in 2021.
The company repurchased a further 31m shares during the quarter.
During the third quarter, prices decreased while costs went up, most notably those in relation to energy, notes the company's report. Transportation of steel decreased by 7% on a year-on-year comparison.
The company describes a challenging situation attributed to slowing real demand for their products.
Their report says impacts on apparent consumption have been exacerbated by rapid supply chain destocking.
As a result, steel prices have declined, at a faster rate than raw materials.
Chief Executive Officer Aditya Mittal said the strong market conditions enjoyed for much of the past two years deteriorated in Q3 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 per cent,” he said.
However the Luxembourg-headquartered company's strong balance sheet can continue to support its focus on executing strategy and ensure its long-term position, as well as "deliver sustainable investor returns".
The CEO also emphasised that decarbonisation efforts remain one of the companies priorities.
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Christos Floros covers News and Politics for RTL Today @christosfloros
