Steel giant ArcelorMittal MT has announced the issuance of CHF 225 million (roughly $238 million) 2.50% Notes due Jul 3, 2020. The notes were issued under ArcelorMittal’s €6 billion wholesale Euro Medium Term Notes Program (EMTN).
A separate Swiss Prospectus has been prepared in connection with the notes offering. The proceeds of the issuance will be utilized to repay or prepay existing debt.
ArcelorMittal’s long-term debt stood at about $17 billion as of Mar 31, 2015, compared with $18.2 billion as of Mar 31, 2014. The company posted a loss in the first quarter of 2015 due to lower iron-ore prices, a stronger U.S. dollar and surge in imports in the U.S.
ArcelorMittal 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 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 slump in steel selling prices, seasonally lower market priced iron ore shipments and reduced 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 #3 (Hold).
Better-ranked companies in the steel space include Schnitzer Steel Industries, Inc. SCHN, Commercial Metals Company CMC and Evraz Highveld Steel & Vanadium Ltd. HGVLY. While Schnitzer Steel holds a Zacks Rank #1 (Strong Buy), Commercial Metals and Evraz Highveld carry a Zacks Rank #2 (Buy).
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