Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Euronext Amsterdam  >  ArcelorMittal       LU0323134006

SummaryChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets 

ArcelorMittal Sells Skyline Steel, Astralloy To Nucor For $605 Million

share with twitter share with LinkedIn share with facebook
share via e-mail
0
05/18/2012 | 04:15am EDT

-- ArcelorMittal sells Skyline Steel, Astralloy operations in NAFTA region

-- Nucor is the largest supplier of steel products to Skyline Steel

-- Sale fits with ArcelorMittal's plan to sell non-core assets to reduce debt

-- ArcelorMittal restarting two blast furnaces, shutting one furnace over summer

(adds details)

By Alex MacDonald and Nadya Masidlover

Of

Steel giant ArcelorMittal (MT) announced Friday the sale of Skyline Steel and Astralloy business in the North American Free Trade Agreement region to Nucor Corp. (NUE) for around $605 million, on a debt free and cash free basis.

The deal is in keeping with ArcelorMittal's plan to sell non-core assets to pay down debt and brings the total number of announced non-core asset sales to about $2.2 billion since September 2011, according to Dow Jones Newswires calculations.

"Skyline Steel and Astralloy are strong specialist businesses with excellent prospects in their markets. However, this decision is very much in line with our strategy of focusing on core assets and reducing net debt," said Aditya Mittal, ArcelorMittal's chief financial officer in a statement. "As the largest supplier to Skyline Steel, Nucor was a natural buyer for this subsidiary business," he added.

ArcelorMittal, the world's largest steelmaker accounting for some 6% of the world's production, said that the transaction includes all of ArcelorMittal's stake in Skyline Steel's operations in the U.S., Canada, Mexico and the Caribbean. The sale doesn't include Skyline Steel's operations in the rest of the world, which will continue to be owned and operated by ArcelorMittal.

The deal is subject to regulatory clearance and is expected to close by the end of the second quarter.

Skyline Steel is a wholly-owned subsidiary of ArcelorMittal that distributes high quality and specialty steel products to the construction and infrastructure industries, including marine construction and bridge and highway construction.

Skyline Steel sources its products from a range suppliers including Nucor, its largest supplier, and generated revenues of $873 million in 2011.

As part of the transaction ArcelorMittal and Nucor will enter into certain long-term commercial agreements whereby ArcelorMittal will continue to provide Skyline Steel with a full range of sheet piling and wear resistant products.

Separately, ArcelorMittal confirmed that it's restarting steel production at its Sestao steel plant in June in the Basque country of Spain. The plant had been shut since November 2011 due to weak demand but "there has recently been a low level recovery in demand for certain niche products" which has prompted the company to run one of the electrical furnaces, a continuous caster, and a pickling line in order to produce 0.8 million tons of steel a year.

At the same time, the company is shutting down its 2.2 million-ton-a-year steel blast furnace B at its Gijon plant in Asturias, Spain for planned relining in July.

The result of these two measures means that production capacity will remain static, in line with prevailing low levels of general demand for steel in the region, the company said.

Currently seven out of ArcelorMittal's 25 European furnaces are idled. Worldwide, ArcelorMittal has idled 17 out of 63 blast furnaces.

AcelorMittal also said it plans to start blast furnace 2 at its Temirtau plant in Kazakhstan in the second quarter.

-By Alex MacDonald and Nadya Masidlover, Dow Jones Newswires; +33 1 4017 1740; [email protected]

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on ARCELORMITTAL
05/18 ARCELORMITTAL : and the Fonds Kirchberg announce shortlist of three architectura..
05/18 ARCELORMITTAL : REVERSE SPLIT: 1 of 3
05/17 ARCELORMITTAL : engineering plant in Ostrava to manufacture tram axles for the 2..
05/12 ARCELORMITTAL : reports results for the first quarter 2017
05/11 Union workers ratify ArcelorMittal Quebec mine contract
05/11 ARCELORMITTAL : announces the Reverse Stock Split Effective Date
05/11 ARCELORMITTAL : Poland officially inaugurates completion of investment projects ..
05/10 ARCELORMITTAL : announces results of its Annual and Extraordinary General Meetin..
05/09ARCELORMITTAL SA : quaterly earnings release
05/05 Union gives ArcelorMittal strike notice for Quebec mine
More news
Sector news : Steel - NEC
05/18 THYSSENKRUPP : German planned warship purchases breach rules - cartel office
05/17 TATA STEEL : pension deal raises questions for Thyssenkrupp merger
05/17 Trump turmoil drags European shares into worst day in eight months
05/16DJTATA STEEL : Reports Loss for Last Quarter
05/16DJTATA STEEL : Reports Unexpected 1Q Net Loss
More sector news : Steel - NEC
News from SeekingAlpha
05/17 A Quick Buck In Ford
05/17 Ternium Is A Takeover Candidate For Big Steel Manufacturers
05/15 ArcelorMittal warns Bosnia authorities on iron ore mine sale
05/15 Tracking David Tepper's Appaloosa Management Portfolio - Q1 2017 Update
05/12 PREMARKET LOSERS AS OF 9 : 05 am
Advertisement
Financials ($)
Sales 2017 63 876 M
EBIT 2017 5 049 M
Net income 2017 2 697 M
Debt 2017 9 551 M
Yield 2017 1,51%
P/E ratio 2017 8,52
P/E ratio 2018 8,40
EV / Sales 2017 0,51x
EV / Sales 2018 0,49x
Capitalization 23 019 M
More Financials
Chart ARCELORMITTAL
Duration : Period :
ArcelorMittal Technical Analysis Chart | LU0323134006 | 4-Traders
Full-screen chart
Technical analysis trends ARCELORMITTAL
Short TermMid-TermLong Term
TrendsBearishNeutralBullish
Technical analysis
Income Statement Evolution
More Financials
Consensus 
Mean consensus OUTPERFORM
Number of Analysts 22
Average target price 29,6 $
Spread / Average Target 31%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Lakshmi Niwas Mittal Chairman & Chief Executive Officer
Aditya Mittal Chief Financial Officer & CEO-ArcelorMittal Europe
Brian E. Aranha Chief Technology Officer & Head-Strategy
Michel Wurth Non-Independent Non-Executive Director
Vanisha Mittal Bhatia Non-Independent Non-Executive Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
ARCELORMITTAL-6.26%22 807
ARCELORMITTAL0.00%22 807
POSCO--.--%21 209
NIPPON STEEL & SUMITOM..-7.12%20 720
NUCOR CORPORATION-4.81%18 077
THYSSENKRUPP AG1.99%14 641
More Results