ArcelorMittal has a 22.6% drop in sales
ArcelorMittal, the world’s leading integrated steel and mining company, reported sales of $ 14.844 million in the first quarter of 2020, a 22.6% year-on-year drop.
The company is the largest steel producer in the Americas, Africa and Europe and has steel manufacturing operations in 18 countries on four continents, including 46 mini-factory and integrated steel manufacturing facilities. As of December 31, 2019, it had approximately 191,000 employees.
Affected by COVID-19, ArcelorMittal recorded losses of $ 1.12 billion, compared to a profit of $ 414 million in the first quarter of 2029.
«Improved operating performance in the first quarter has been significantly overshadowed by the COVID-19 crisis,» said Lakshmi N. Mittal, President and CEO of ArcelorMittal.
Faced with a significant humanitarian challenge, the company’s first priority has been to take all necessary actions to safeguard the well-being of its people and provide support to the extent required in the communities in which we operate.
«But we have also moved decisively to protect the business against the completely unprecedented scenario we are facing, where the social and economic blockade has contributed to a significant decrease in demand,» added Mittal.
ArcelorMittal and the challenges
ArcelorMittal’s steelmaking operations have a high degree of geographic diversification. Approximately 37% of its crude steel is produced in the Americas, approximately 49% is produced in Europe, and approximately 14% is produced in other countries, such as Kazakhstan, South Africa, and Ukraine.
“We quickly moved to temporary idle furnaces, reducing production in all markets and reducing capital and operating costs to adapt to this environment.
“There are still too many uncertainties to accurately predict what the rest of the year holds. However, it seems likely that over the course of this month countries will begin to announce details of their exit strategies, «said Mittal.
While this is likely to be a relief, not an immediate end to the blockade, construction and manufacturing are expected to be among the first sectors allowed to restart operations.
