) hosted its 2014 Investor day yesterday. The company reaffirmed
its 2014 outlook of 3.5% to 4% growth in the global steel market.
The company also discussed the different ways of adding value in
ArcelorMittal highlighted its key value drivers and key enablers
including a strong balance sheet, active portfolio management, a
decentralized organizational structure and the best talent. The
company stated that its medium-term earnings before interest,
tax, depreciation and amortization (EBITDA) will be $150 per ton.
Meanwhile, the company will streamline its management and
reorganize its steel businesses by geography effective Jan 1,
2014. External reporting will follow this structure under the new
segments: ACIS, Brazil (and neighboring countries), Europe,
Mining and NAFTA.
ArcelorMittal also provided updates on its development and
investment projects. The company announced revisions to phase II
of its project in Liberia, which will enable it to supply 15
million tons per year of high quality sinter feed at
significantly lower cost for the first eight to ten years. The
company expects to incur total capital expenditure of about $1.7
billion for the revised phase II project.
ArcelorMittal further announced the possibility of growth at
ArcelorMittal Mines in Canada. The company identified an
expansion potential of 6 million tons per year to 30 million tons
The company also provided an update on the automotive
franchise business focusing on the acquisition of the
ThyssenKrupp facility in Calvert Alabama from Japan's
Nippon Steel & Sumitomo Metal Corporation
), now known as AM/NS Calvert.
ArcelorMittal currently carries a Zacks Rank #3 (Hold).
Other companies in the steel industry with favorable Zacks
AK Steel Holding Corporation
United States Steel Corp.
). While AK Steel holds a Zacks rank #1 (Strong Buy), United
States Steel retains a Zacks Rank #2 (Buy).
AK STEEL HLDG (AKS): Free Stock Analysis
ARCELOR MITTAL (MT): Free Stock Analysis
NIPPON STEEL CP (NSSMY): Get Free Report
UTD STATES STL (X): Free Stock Analysis
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