ArcelorMittal reports 41 pct rise in net income at USD 1.865 bn
In February, ArcelorMittal India - a subsidiary of ArcelorMittal - submitted a competitive resolution plan for ESIL.
The world's largest steelmaker ArcelorMittal today posted 41 per cent rise in net income at USD 1.865 billion for the quarter ended June 30, 2018, on the back of higher sales.
The company has posted a "net income of USD 1.9 billion in the second quarter of 2018", the statement said.
ArcelorMittal follows January-December financial year.
The sales increased to USD 19.998 billion during the quarter over USD 17.244 billion in the year-ago period.
On plans to acquire debt-ridden Essar Steel, the company said: "The process has faced various legal challenges at NCLT and more recently at NCLAT. The NCLAT hearing concluded on July 18, 2018, and a ruling is expected in August, which should provide further clarity on the ESIL (Essar Steel India Ltd) insolvency process."
The resolution plan set out a detailed industrial plan for ESIL aimed at improving its performance and profitability and ensuring it can participate in the anticipated growth of steel demand in India.
Commenting on the results, company's Chairman and CEO Lakshmi N Mittal said this is an encouraging set of results reflecting the structural improvements in both the global steel industry due to supply reform dynamics and within ArcelorMittal as a result of 'Action 2020'.
The significant improvement in the company's balance sheet and earnings outlook, he said, has been recognised by the main credit agencies and it has achieved its stated aim of regaining the investment grade credit rating.
The outlook for the second half of the year is encouraging and ArcelorMittal anticipates current favourable market conditions to continue, he said.
"We believe improvements in underlying industry fundamentals are sustainable, although there is still more to be done to thoroughly address the issue of global overcapacity. We will retain a deleveraging bias, while also pursuing selective opportunities to strengthen the foundations of sustainable value creation," he added.
The company said its gross debt was at USD 13.5 billion as of June-end this year.
Net debt by June decreased to USD 10.5 billion as compared with USD 11.1 billion at March 31, 2018, primarily due to higher net cash, it added.
On purchasing of Italian steel company Ilva's assets, it said the government-appointed trustees overseeing the insolvency liquidation of Ilva extended to September 15, 2018, the deadline for fulfilment of all the conditions precedent to the completion of the contract with ArcelorMittal.
"ArcelorMittal is committed to the rehabilitation of Ilva, in particular addressing its environmental, social and industrial challenges to reposition Ilva as one of Europe's premier steel facilities," it added.
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