Upcoming AWS Coverage on Gibraltar Industries Post-Earnings Results

LONDON, UK / ACCESSWIRE / June 1, 2017 / Active Wall St. announces its post-earnings coverage on ArcelorMittal (NYSE: MT). The Company disclosed its financial results for the first quarter fiscal 2017 (Q1 FY17) on May 12, 2017. The Luxembourg-based Company reported 20.1% y-o-y growth in quarterly sales. Register with us now for your free membership at:

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One of ArcelorMittal's competitors within the Steel & Iron space, Gibraltar Industries, Inc. (NASDAQ: ROCK), reported on May 05, 2017, its financial results for Q1 2017 which ended on March 31, 2017. AWS will be initiating a research report on Gibraltar Industries in the coming days.

Today, AWS is promoting its earnings coverage on MT; touching on ROCK. Get our free coverage by signing up to:

http://www.activewallst.com/register/

Earnings Reviewed

During the quarter ended on March 31, 2017, ArcelorMittal reported sales of $16.09 billion, up from $13.40 billion recorded at the end of Q1 FY16. However, sales numbers for the reported quarter lagged behind market expectations of $16.66 billion. The Company's quarterly sales growth was primarily due to higher seaborne iron ore reference prices, market-priced iron ore shipments, and average steel prices, partly offsetting lower steel shipment.

The steel producer reported Q1 FY17 net income attributable to equity holders of the parent of $1.00 billion, or $0.33 per diluted share, compared to net loss attributable to equity holders of the parent of $416 million, or $0.23 loss per diluted share, in Q1 FY16. Moreover, net income numbers beat market earnings estimates of $0.24 per diluted share.

Operating Metrics

In Q1 FY17, ArcelorMittal's operating income surged to $1.58 billion from $275 million in Q1 FY16. The Company's operating also improved to 9.8% in Q1 FY17 from 2.1% in Q1 FY16. The Company reported EBITDA of $2.23 billion in Q1 FY17 compared to $927 million in Q1 FY16. Furthermore, EBITDA margin was up to 13.9% in Q1 FY17 from 6.9% in Q1 FY16.

In Q1 FY17, iron ore production was 14.0 million metric tonnes compared to 14.1 million metric tonnes in Q1 FY16. The Company's crude steel production improved marginally to 23.6 million metric tonnes in Q1 FY17 from 23.2 million metric tonnes in Q1 FY16. Additionally, total shipments of steel products in Q1 FY17 were 21.1 million metric tonnes versus 21.5 million metric tonnes in Q1 FY16.

Segment Performance

During Q1 FY17, NAFTA segment's sales came in at $4.46 billion compared to $3.82 billion in the year ago comparable period. The segment reported operating income of $396 million in Q1 FY17 compared to $205 million in Q1 FY16. Furthermore, the segment's EBITDA was $524 million in Q1 FY17 versus $339 million in previous year's same quarter.

Brazil segment's sales were $1.61 billion in Q1 FY17, which was above last year's recorded sales numbers of $1.26 billion. The segment's reported operating income of $175 million in Q1 FY17 versus $89 million in Q1 FY16. Additionally, the segment's EBITDA stood at $246 million in Q1 FY17 compared to $145 million in the prior year's same period.

In Q1 FY17, Europe segment reported sales of $8.22 billion compared to $7.15 billion in Q1 FY16. The segment's operating income was $636 million in Q1 FY17 compared to $86 million in the year ago same quarter. Moreover, the segment's EBITDA grew to $909 million in Q1 FY17 from $363 million in the previous year's comparable period.

The Company's ACIS segment's sales grew to $1.81 billion in Q1 FY17, from $1.19 billion in the year ago period. The segment reported operating income of $116 million in Q1 FY17 against operating loss of $15 million in the prior year's same period. Additionally, the segment's EBITDA improved to $191 million in Q1 FY17 from $61 million in Q1 FY16.

Mining segment's sales surged from $600 million in Q1 FY16 to $1.03 billion in Q1 FY17. The segment's Q1 FY17 operating income came in at $378 million, compared to operating loss of $2 million in Q1 FY16. Furthermore, the segment's EBITDA stood at $480 million in Q1 FY17, versus $98 million in the last year quarter.

Cash Flow & Balance Sheet

For the three months ended on March 31, 2017, ArcelorMittal reported net cash used in operating activities of $299 million compared to net cash used in operating activities $690 million in the year ago comparable period. The Company had cash and cash equivalents balance of $2.40 billion, as on March 31, 2017, compared to $2.86 billion, at the close of books on March 31, 2016. Furthermore, the Company ended the quarter with total long-term debt of $11.05 billion compared to $16.31 billion as on March 31, 2016.

Reverse Stock Split

On May 11, 2017, ArcelorMittal's management announced that it will proceed to consolidate each three existing shares in the Company without nominal value into one share without nominal value. The Reverse Stock Split became effective on May 22, 2017.

Stock Performance

At the closing bell, on Wednesday, May 31, 2017, ArcelorMittal's stock slipped 2.28%, ending the trading session at $21.84. A total volume of 7.88 million shares were traded at the end of the day, which was higher than the 3-month average volume of 6.48 million shares. In the last twelve months, shares of the Company have skyrocketed 49.79%. Shares of the Company have a PE ratio of 6.87 and currently have a market cap of $22.06 billion.

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SOURCE: Active Wall Street