) has announced that it has completed the first installment of
its stake sale in ArcelorMittal Mines Canada. The sale was a part
of the previously announced agreement, pursuant to which
ArcelorMittal`s wholly-owned subsidiary ArcelorMittal Mines
Canada (AMMC) and a consortium led by POSCO and China Steel
Corporation (CSC) entered into a joint venture partnership that
will own ArcelorMittal`s Labrador Trough iron ore mining and
The consortium will acquire a 15% interest in the joint venture
for total consideration of $1,100 million in cash, with AMMC and
its affiliates retaining 85% interest.
With the payment of the first installment, the consortium
acquired an 11.05% interest in the joint venture for total
consideration of $810 million in cash, with ArcelorMittal Mines
Canada retaining an 88.95% interest in the joint venture.
The second installment is expected to be completed by the second
quarter of 2013 and will raise the consortium's interest in the
joint venture to 15%.
In Feb 2012, ArcelorMittal posted a net loss of $4 billion or
$2.58 per share in the fourth quarter of 2012 compared with a net
loss of $1 billion or 65 cents per share a year ago. The bottom
line was hurt by hefty charges and challenging economic
conditions in Europe where the demand for steel dropped 8.8% last
Adjusted loss of $1.47 cents a share for the quarter exceeded
the Zacks Consensus Estimate of a loss of 15 cents per share. The
adjusted loss excludes $4.8 billion of goodwill impairment
charges associated with the company's European businesses and
$192 million of restructuring charges.
Revenues declined 14% year over year to $19,309 million in the
reported quarter, trailing the Zacks Consensus Estimate of
$20,168 million. Sales also declined 2.1% on a sequential basis
due to lower average steel selling prices. Shipments declined
2.9% to 20 million metric tons in the quarter.
ArcelorMittal currently retains Zacks Rank #5 (Strong Sell).
ARCELOR MITTAL (MT): Free Stock Analysis
GIBRALTAR INDUS (ROCK): Free Stock Analysis
SHILOH INDS INC (SHLO): Get Free Report
CIA SIDERUR-ADR (SID): Free Stock Analysis
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Other steel producers having a favorable Zacks Rank are
Gibraltar Industries Inc.
Shilo Industries Inc.
Companhia Siderurgica Nacional
). While Gibraltar and Shilo Industries hold a Zacks Rank #1
(Strong Buy), Companhia Siderurgica has a Zacks Rank #2 (Buy).