ArcelorMittal MT announced that it has concluded the pricing of two series of U.S. dollar denominated notes. The notes consist of $500 million aggregate principal amount of 5.125% notes due 2020 and $500 million aggregate principal amount of 6.125% notes due 2025. The offering is expected to close on Jun 1, 2015, on satisfaction of customary conditions.
ArcelorMittal will utilize the net proceeds to repay existing debt, particularly the early redemption of bonds maturing in Aug 2015.
AcelorMittal posted a loss in the first quarter of 2015 due to lower iron-ore prices, a stronger U.S. dollar and surge of imports in the U.S.
The company reported net loss of $728 million or 41 cents per share in the first quarter, which widened from a loss of $205 million or 12 cents per share in the year-ago quarter. The loss per share was also wider than the Zacks Consensus Estimate of a loss of 7 cents.
Revenues went down 13.5% year over year to $17.1 billion in the reported quarter, marginally beating the Zacks Consensus Estimate of $17 billion. Sales declined 8.6% sequentially due to lower steel selling prices, seasonally lower market priced iron ore shipments and lower iron ore prices, partly offset by increased steel shipments. Total steel shipments for the quarter were 21.6 million metric tons compared with 21 million metric tons in the year-ago quarter.
ArcelorMittal currently has a Zacks Rank #4 (Sell).
Stocks to consider in the steel and related industries include Olympic Steel Inc. ZEUS, Evraz Highveld Steel & Vanadium Ltd. HGVLY, and POSCO PKX. While Olympic Steel sports a Zacks Rank #1 (Strong Buy), Evraz Highveld and POSCO carry a Zacks Rank #2 (Buy).
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