Update regarding the impact of COVID-19
March 31 2020 - 2:00AM
Update regarding the impact of COVID-19
31 March 2020, 08:00 CET
Further to the statement issued on 19 March, ArcelorMittal today
provides an update on the impact of COVID-19.
Firstly, we would like to recognise the resilience and
flexibility of our global workforce, whose health and well-being is
our first priority. Where possible, employees are working remotely
from home. Where assets continue to operate, we are following the
recommendations from government as well as the World Health
Organisation (‘WHO’). We appreciate this brings new challenges for
everyone and are working together as a community to support each
other through these unprecedented times.
The global escalation of COVID-19 and the measures introduced by
governments worldwide to contain the virus are negatively
impacting economic activity and industrial supply chains in many
parts of the world. Consequently, we are either seeing or expect to
see a significant decline in industrial activity in many if not all
of the geographic markets in which we operate, which is impacting
our business. In response we are reducing production and
temporary idling steelmaking and finishing assets, adapted on a
country by country basis in alignment with regional demand as well
as government requirements. This will not necessarily happen
uniformly at assets across the globe given the escalation of the
virus is at different points in different regions. While
Europe is currently the epicenter, according to official WHO data
cases in the NAFTA region have now exceeded those in China,
with cases also increasing in Africa, India, South America and
the CIS. Where demand for our
products continues, for example for food packaging, we
will endeavour to maintain reduced operations to ensure we can meet
customer’s requirements. In order to mitigate the impact of
the lower level of production we are implementing significant
measures to preserve cash and reduce costs in-line with reduced
production levels. This includes accessing measures introduced by
governments to support companies throughout these unprecedented
times. We are thankful to all governments for their swift
introduction of such measures which will be critical to many
industries as we navigate this period.
The current market volatility and uncertainty is tough
for every country, every individual and every company. We are
however buoyed by the fact our company has in recent years
prioritised the strengthening of its balance sheet to provide a
strong financial foundation in all market conditions. Net debt is
at a record low, we have a very manageable debt maturity
profile having used available cash to prepay debt in recent years
and also benefit from a significant liquidity position.
We intend to provide updated guidance on our 2020 cash
requirements, including capital expenditure, when we announce our
first quarter 2020 results on 7 May 2020. In order to
ensure the safety and wellbeing of our employees, shareholders and
stakeholders, we have however decided to postpone the
AGM planned for 5 May 2020. A new date will be
communicated in due course. Like many in the private sector,
we are attempting to harness our skills and resources in a useful
and collaborative way to help address the challenges presented
by COVID-19. Specifically, we have focussed our actions on
collaborating to address the severe lack of the required safety and
medical equipment, including face masks and ventilators. Our
businesses across the world have now collectively donated to
various initiatives. We have also been utilising our global network
to help facilitate the transfer of equipment to and from regions
most impacted. For example, in February we actively helped source
masks for China. Now that China appears to have passed its peak, we
are working with our associates there to help bring medical
equipment to the countries now facing an escalation and
particularly those, such as India and Liberia, that will struggle
to source adequate supplies. Furthermore, we have also been able to
contribute the 3D printing expertise of our R&D team to a
global effort focussed on developing a 3D printed ventilator
prototype. This prototype will be tested imminently in hospitals
and, if successful, will massively increase the ability to rapidly
produce ventilators. We are now focussed on the prototype for a
more advanced ventilator which also has the ability, in addition to
providing lungs with oxygen, to feeding medicine incorporating AI
algorithms.
Finally, where excess capacity exists, we are offering space to
medical facilities to host additional wards. We are proud of
the initiatives our employees are taking to provide social and
humanitarian support during this time.
ENDS
About ArcelorMittal
ArcelorMittal is the world's leading steel and
mining company, with a presence in 60 countries and an industrial
footprint in 18 countries. Guided by a philosophy to produce safe,
sustainable steel, we are the leading supplier of quality steel in
the major global steel markets including automotive, construction,
household appliances and packaging, with world-class research and
development and outstanding distribution networks.
Through our core values of sustainability,
quality and leadership, we operate responsibly with respect to the
health, safety and wellbeing of our employees, contractors and the
communities in which we operate.
For us, steel is the fabric of life, as it is at
the heart of the modern world from railways to cars and washing
machines. We are actively researching and producing steel-based
technologies and solutions that make many of the products and
components people use in their everyday lives more energy
efficient.
We are one of the world’s five largest producers
of iron ore and metallurgical coal. With a geographically
diversified portfolio of iron ore and coal assets, we are
strategically positioned to serve our network of steel plants and
the external global market. While our steel operations are
important customers, our supply to the external market is
increasing as we grow.
In 2019, ArcelorMittal had revenues of $70.6
billion and crude steel production of 89.8 million metric tonnes,
while own iron ore production reached 57.1 million metric
tonnes.
ArcelorMittal is listed on the stock exchanges
of New York (MT), Amsterdam (MT), Paris (MT), Luxembourg (MT) and
on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and
Valencia (MTS). For more information about ArcelorMittal please
visit: http://corporate.arcelormittal.com/
|
|
Contact information ArcelorMittal Investor
Relations |
|
|
|
Europe |
+44 20 7543 1156 |
Americas |
+1 312 899 3985 |
Retail |
+44 20 7543 1156 |
SRI |
+44 207543 1156 |
Bonds/Credit |
+33 171 921 026 |
|
|
|
|
Contact information ArcelorMittal Corporate
Communications |
|
E-mail: |
press@arcelormittal.com |
Phone: |
+442076297988 |
|
|
|
|
ArcelorMittal Corporate Communications |
|
|
|
Paul Weigh |
+44 20 3214 2419 |
|
|
ArcelorMittal (EU:MT)
Historical Stock Chart
From Aug 2024 to Sep 2024
ArcelorMittal (EU:MT)
Historical Stock Chart
From Sep 2023 to Sep 2024