ArcelorMittal (MT) to Launch Second Generation iCARe Steel

ArcelorMittalMT said that it is officially launching the second generation of iCARe electrical steels at the coil-winding expo CWIEME, in Berlin, from Jun 20-22.

The iCARe steel grades play a vital role in manufacturing electric motors used in both conventional cars and electric vehicles. In Jun 2012, iCARe was the first electrical steel product range launched by ArcelorMittal. It was specifically designed to meet the requirements of electrical vehicles.

The second generation of iCARe steels will help to improve power density compared with the first generation, resulting in less weight for identical motors. Other advantages for the new, second generation grades include reduced use of electricity at all levels of performance, generation of less heat, providing greater strength and superior magnetic properties. This in turn will lead to better performance of engines and increase driving range.

ArcelorMittal said that the main challenge for electric vehicles continues to be the limited distance over which they can be driven. The introduction of second generation iCARe into the automobile manufacturing will allow the industry to add more power and driving range. The technology also applies to many small motors car, because superior energy balance helps to save electricity and thereby extend the driving range of vehicles.

The company also noted that the market for e-bikes and e-cars in Europe is growing robustly. The number of electric motors used in both electric and conventional cars is also on the rise. To illustrate, in an average-priced conventional car, there can be as many as 70 electric motors, operating everything from headlight controllers to power seat positioners and power windows. In case of Luxury cars, the number of motors required can be more than 100.

ArcelorMittal's initiative of introducing new iCARe electrical steels support the manufacturers of drive systems in their efforts to build more efficient and better-performing electric motors by using improved materials.

ArcelorMittal has outperformed the Zacks categorized Steel-Producers industry over a year. The company's shares gained 31.5% over this period while the industry saw a gain of 22.7%.

The company continues to expect global apparent steel consumption to rise 0.5-1.5% year over year in 2017. It will remain focused on progressing in three areas, namely cost optimization, product mix and volume growth.

ArcelorMittal should gain from its efforts to reduce debt, lower cost, expand capacity and improve efficiency. The company remains on track with its cost reduction actions under its Action 2020 program. The Action 2020 program includes plans to optimize costs and increase steel shipment volumes, along with improving the portfolio of high added value products.

ArcelorMittal is also expanding its automotive steel line of products. The company is expanding its global portfolio of automotive steels by launching a new generation of advanced high strength steels (AHSS). It is also planning to expand its family of third-generation advanced high strength steel. These products will ensure that the company is best positioned to meet customer requirements via a strong technical and product portfolio.

ArcelorMittal Price and Consensus

ArcelorMittal Price and Consensus | ArcelorMittal Quote

ArcelorMittal currently sports a Zacks Rank #1 (Strong Buy).

Other Stocks to Consider

Other top-ranked stocks in the basic materials space include Kronos Worldwide Inc. KRO , Huntsman Corporation HUN and The Chemours Company CC . All the three stocks sport a Zacks Rank #1. You can see the complete list of today's Zacks Rank #1 stocks here .

Kronos has expected long-term earnings growth rate of 5%.

Huntsman has expected long-term earnings growth rate of 7%.

Chemours Company has expected long-term earnings growth rate of 15.5%.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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