The steel giant ArcelorMittal, which manages the former Ilva in Italy, closes 2019 with a loss of $2,45 billion (2018 had instead closed with a profit of 5,1 billion). Revenues amounted to 70,6 billion, down 7,1%.
Last year's accounts have been scuttled since drop in steel prices and from collapse of international demand. They also weighed on the red devaluation of some assets, especially in the USA, and the exceptional charges related to renovations.
"2019 was a very difficult year - comments the number one of the French-Indian group, Lakshmi Mittal in a note - and it reflects very clearly on our profitability, which has decreased significantly". The group calls the margin squeeze "exceptional and unsustainable", but also argues that the process of destocking is now mature and "the recent signals for steel margins are more encouraging".
In any case, ArcelorMittal registered last year significant cash generation, which reduced net debt to its lowest levels ever, to the point that the group will propose the payment of a dividend of 0,3 dollars per share also in 2020.
On the front of Costs, the group aims for a reduction of one billion for this year.
Meanwhile, the safety index of workers worsened sharply last year as a result of the entry of the Italian businesses into the group. The Lost time injury frequency rate, an index that relates the number of accidents per million hours worked, rose from 0,69 to 1,21 between 2018 and 2019. This is the worst figure since 2011 (1,4). Without considering ArcelorMittal Italia, last year's index would have been 0,75.
The young Mittal, a member of the shareholding family of the world's leading steel group, did not accept the questions of the analysts who asked for more details on the state of the negotiations with the Italian government. In the presentation slides of ArcelorMittal's annual results there is a generic reference to the situation in Italy: "Active negotiations with the Ilva commissioners to renegotiate the terms of our ownership of ex-Ilva assets".
And today should be a key day for Ilva to tighten up on the new agreement in view of tomorrow's hearing at the Court of Milan. On 5 February in Taranto, in a meeting with the unions, the managing director of ArcelorMittal Italia, Lucia Morselli, affirmed that an agreement will be reached and that ArcelorMittal intends to remain in the management of the former Ilva.
