The company announced further production cuts in the fourth quarter

ArcelorMittal Europe, the European division of the world’s largest steelmaker, cut steel production by 12% y/y in the third quarter of 2022 – to 8 million tons. This is stated in the report, published by the corporation.

Compared to the second quarter of 2022, steel production fell by 3.2%. The reasons were a significant decrease in demand and a reduction in production due to high energy prices.

“Given the worsening macroeconomic conditions and order book, high energy costs and carbon emissions, rising imports, the company has announced further, more significant, production cuts starting in the fourth quarter of 2022 (in France, Spain, Germany and Poland) to bring the supply in line with the addressable demand,” the message says.

ArcelorMittal’s European division reduced gas consumption by 30% in the third quarter. Natural gas prices are expected to be lower in the fourth quarter.

ArcelorMittal Europe shipments in the third quarter of 2022 decreased by 11.1% q/q and by 6.2% year-on-year – to 7.1 million tons. The reason for the decrease in the indicator is the weakening of demand.

ArcelorMittal Europe Q3 results, GMK Center

Reduced shipments led to a 4.8% y/y drop in sales in the third quarter and by 20.5% compared to the previous quarter – to $10.7 billion. Operating profit for this period was $158 million compared to $1.93 billion in the third quarter of 2021 and $2.06 billion in the second quarter of 2022 .

Compared to the second quarter, EBITDA fell by 61% – to $931 million due to lower steel shipments, the negative impact of prices and costs, higher energy costs and the negative impact of currency exchange rates. EBITDA decreased by 58% year-on-year.

As GMK Center reported earlier, ArcelorMittal in January-September 2022, according to the financial report, reduced output of steel by 14.1% y/y. In the third quarter, the company increased its steel output by 2.05% compared to the second quarter – up to 14.9 million tons.

Also, ArcelorMittal for 9 months of 2022 reduced net sales by 17.1% compared to the same period in 2021 – up to $9.04 billion. The company’s net revenue in the third quarter of 2022 decreased by 78.5% y/y – to $0.993 million. The EBITDA indicator in this period was $2.7 billion – half less than the result of the same period in 2021.