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    MT   LU0323134006

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
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 | 10:15am CET

-- 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; nadya.masidlover@dowjones.com

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on ARCELORMITTAL
01/19 ARCELORMITTAL : Reducing greenhouse gases requires a life cycle approach
01/18 WILBUR ROSS : Trump Commerce nominee Ross to sell private equity firm stake
2016 ARCELORMITTAL : announces financial calendar for 2017
2016 ARCELORMITTAL : “With the right legislative framework, the steel industry ..
2016 ARCELORMITTAL : European Media Day
2016DJEuropean Companies With Chinese Supply-Chains Brace for Anti-Dumping Rules
2016DJWILBUR ROSS : Wilbur Ross to Be Trump's Commerce Secretary
2016DJThyssenkrupp Profit Pressured by Steel Sector Woes
2016 ARCELORMITTAL : and STX France sign a contract for the supply of steel for two n..
2016 ARCELORMITTAL : Evonik, LafargeHolcim and Solvay investigate trans-sector techno..
More news
Sector news : Steel - NEC
01/19 TATA STEEL : UK financier makes new offer to take over Tata Steel pension scheme
01/19DJBHP Billiton, Vale, JV Reach Preliminary Agreement With Brazil Prosecutors Re..
01/17DJFortescue Metals Names Elizabeth Gaines as CFO
01/13 TATA STEEL : in talks to cut its UK pension scheme benefits - Trustees
01/09 B COM PORTUGUES : Millennium approves capital hike of up to 1.33 billion euros
More sector news : Steel - NEC
News from SeekingAlpha
01/18 Steel stocks rally as Commerce nominee Ross signals China tariffs
01/10 Industrial metals stocks surge after China cuts capacity
01/10 PREMARKET GAINERS / LOSERS AS OF 9 : 10 am
2016 ARCELORMITTAL : Why 2017 Will Be A Strong Year
2016 After Hours Gainers / Losers
Advertisement
Financials ($)
Sales 2016 58 032 M
EBIT 2016 3 878 M
Net income 2016 1 549 M
Debt 2016 11 573 M
Yield 2016 0,01%
P/E ratio 2016 16,54
P/E ratio 2017 17,39
EV / Sales 2016 0,64x
EV / Sales 2017 0,57x
Capitalization 25 435 M
More Financials
Chart ARCELORMITTAL
Duration : Period :
ArcelorMittal Technical Analysis Chart | MT | LU0323134006 | 4-Traders
Full-screen chart
Technical analysis trends ARCELORMITTAL
Short TermMid-TermLong Term
TrendsNeutralBullishBullish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 25
Average target price 7,53 $
Spread / Average Target -8,6%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Lakshmi Niwas Mittal Chairman & Chief Executive Officer
Aditya Mittal Chief Financial Officer
Brian E. Aranha Chief Technology Officer & Head-Strategy
Michel Wurth Non-Independent Non-Executive Director
Wilbur L. Ross Independent Non-Executive Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
ARCELORMITTAL10.39%25 435
VALE SA22.58%50 753
NIPPON STEEL & SUMITOM..3.50%22 267
NUCOR CORPORATION4.81%19 867
POSCO--.--%19 861
THYSSENKRUPP AG6.03%14 457
More Results