ArcelorMittal reports downward momentum in Q4 2022

Luxembourg-based global steel producer ArcelorMittal has reported negative operating profits for the fourth quarter of 2022. For the full year, the company nonetheless has calculated a net income of $9.3 billion on sales of nearly $80 billion worth of product.

“Despite the challenges that emerged as the year unfolded, our full year results demonstrate the benefits of our strengthened asset portfolio and the improvements we have made to our cost base in recent periods,” ArcelorMittal CEO Aditya Mittal says. For the fourth quarter, the company has reported an operating loss of $306 million.

“Our two low-carbon customer products, XCarb green steel certificates and XCarb recycled and renewably produced, continue to gain momentum with customers; and the XCarb Innovation Fund made a series of investments in compelling new low-carbon technologies," Mittal says.

In 2022, the company’s overall sales rose by more than $3 billion compared with the prior year. However, its operating income fell by nearly 32 percent from $270 million in 2022 to $184 million in 2021.

The company produced about 14.6 percent less steel last year compared with 2021, one of the challenges Mittal referred to in his comments.

Among the 2022 highlights the firm identified was the acquisition of a hot-briquetted iron (HBI) production facility in Texas. The company has said it will send HBI from that plant to its 1.5-million-metric-ton-per-year electric arc furnace (EAF) AM/NS Calvert mill in Alabama, which also can accept scrap.

In Europe, ArcelorMittal instead has leaned into scrap. Another of the 2022 highlights it mentions in its earnings report includes its acquisition of four scrap metal recycling yards or networks in Europe.

Regarding the year in progress, Mittal says, “As we look ahead, evidence suggests that the customer destock we saw in the second half of 2022 has peaked, hence providing support to apparent steel consumption and steel spreads.”

Mittal adds, “Although geopolitical uncertainty remains high, we remain confident in the strength and resilience of ArcelorMittal and in our ability to successfully execute our strategy of growth, decarbonization and sustainable returns through all aspects of the cycle.”