) announced that it has completed the sale of 15% interest in its
fully-owned subsidiary ArcelorMittal Mines, Canada (AMMC) to a
consortium led by
) and China Steel Corporation for $1.1 billion.
The sale was a part of the previously announced agreement,
pursuant to which ArcelorMittal's unit AMMC and the consortium
entered into a joint venture partnership. Under the deal, the
partnership will own ArcelorMittal's Labrador Trough iron ore
mining and infrastructure assets.
The consortium acquired a 3.95% interest in the joint venture for
a total consideration of $290 million in cash, which increased
its stake to 15% in the joint venture. AMMC now retains 85% stake
in the joint venture.
A few days ago, ArcelorMittal posted a net loss of $0.3
billion or 21 cents per share for the first quarter of 2013
compared with a net income of $92 million or 6 cents per share a
year ago. Analysts polled by Zacks were expecting earnings of 7
cents a share on an average for the quarter. Challenging economic
conditions, especially in Europe, weighed on the bottom line in
Revenues declined 13% year over year to $19.8 billion in the
reported quarter. Sales increased 2.3% on a sequential basis due
to higher steel shipment volumes. Shipments declined 5.9% year
over year to 20.9 million metric tons in the quarter.
ArcelorMittal retained its outlook for 2013 and expects to
report earnings before interest, tax, depreciation and
amortization (EBITDA) above $7.1 billion assuming that the prices
of iron ore and the margin of steel prices over raw material
costs in 2013 will be similar to the 2012 levels.
ArcelorMittal currently retains Zacks Rank #4 (Sell).
Other companies in the steel industry having favorable Zacks
Angang Steel Company Limited
LB Foster Co.
). Both retain a Zacks Rank #2 (Buy).
ANGANG STEEL LT (ANGGY): Get Free Report
FOSTER LB CO (FSTR): Free Stock Analysis
ARCELOR MITTAL (MT): Free Stock Analysis
POSCO-ADR (PKX): Free Stock Analysis Report
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