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ArcelorMittal (MT) Completes Sale of Temirtau Operations to QIC
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ArcelorMittal (MT - Free Report) successfully concluded the sale of its Kazakh steel and mining operation, ArcelorMittal Temirtau, to the Qazaqstan Investment Corporation (QIC), a state-controlled direct investment fund. Following extensive discussions between ArcelorMittal and the government of Kazakhstan, a sustainable agreement for the integrated steelmaking asset in the Karaganda region was reached.
The transaction, valued at $286 million, includes an additional $250 million for repaying outstanding intra-group dues. ArcelorMittal is also set to receive a sovereign-fund guaranteed payment of $450 million, disbursed in four equal annual installments, as a repayment of an intra-group loan.
As part of the deal, all assets of ArcelorMittal Temirtau, outlined in the company’s consolidated accounts and third-quarter 2023 earnings release, have been transferred to QIC on an 'as is' operational basis. This signifies that QIC has assumed control and responsibility for the operations and the entity will be rebranded accordingly.
ArcelorMittal has contributed approximately $35 million to the Kazakhstan Khalkyna Foundation, which focuses on healthcare and education projects in the Karaganda region. This move reflects ArcelorMittal's commitment to supporting local communities and investing in vital sectors for the region’s betterment.
Shares of ArcelorMittal have lost 6.7% in the past year compared with a 16.2% rise of the industry.
Image Source: Zacks Investment Research
ArcelorMittal anticipates 1-2% year-over-year growth in global steel consumption (excluding China) for 2023. The company maintains a positive outlook on steel demand in the medium to long term. Capital expenditures for 2023 are projected in the range of $4.5-$5 billion. Additionally, strategic projects are expected to contribute to an additional $1.3 billion in normalized EBITDA.
The consensus estimate for AXTA’s current-year earnings is pegged at $1.58, indicating year-over-year growth of 6.8%. AXTA beat the Zacks Consensus Estimate in three of the last four quarters and missed one, with the average earnings surprise being 6.7%. The company’s shares have increased 26.9% in the past year.
The Zacks Consensus Estimate for ANDE’s current-year earnings has been revised upward by 5.1% in the past 60 days. ANDE beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 32.8% on average. The stock has rallied around 49.7% in a year.
The consensus estimate for Alamos’ current fiscal year earnings is pegged at 53 cents, indicating a year-over-year surge of 89.3%. AGI beat the Zacks Consensus Estimate in all of the last four quarters, with the average earnings surprise being 25.6%. The company’s shares have surged 39.2% in the past year.
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ArcelorMittal (MT) Completes Sale of Temirtau Operations to QIC
ArcelorMittal (MT - Free Report) successfully concluded the sale of its Kazakh steel and mining operation, ArcelorMittal Temirtau, to the Qazaqstan Investment Corporation (QIC), a state-controlled direct investment fund. Following extensive discussions between ArcelorMittal and the government of Kazakhstan, a sustainable agreement for the integrated steelmaking asset in the Karaganda region was reached.
The transaction, valued at $286 million, includes an additional $250 million for repaying outstanding intra-group dues. ArcelorMittal is also set to receive a sovereign-fund guaranteed payment of $450 million, disbursed in four equal annual installments, as a repayment of an intra-group loan.
As part of the deal, all assets of ArcelorMittal Temirtau, outlined in the company’s consolidated accounts and third-quarter 2023 earnings release, have been transferred to QIC on an 'as is' operational basis. This signifies that QIC has assumed control and responsibility for the operations and the entity will be rebranded accordingly.
ArcelorMittal has contributed approximately $35 million to the Kazakhstan Khalkyna Foundation, which focuses on healthcare and education projects in the Karaganda region. This move reflects ArcelorMittal's commitment to supporting local communities and investing in vital sectors for the region’s betterment.
Shares of ArcelorMittal have lost 6.7% in the past year compared with a 16.2% rise of the industry.
Image Source: Zacks Investment Research
ArcelorMittal anticipates 1-2% year-over-year growth in global steel consumption (excluding China) for 2023. The company maintains a positive outlook on steel demand in the medium to long term. Capital expenditures for 2023 are projected in the range of $4.5-$5 billion. Additionally, strategic projects are expected to contribute to an additional $1.3 billion in normalized EBITDA.
ArcelorMittal Price and Consensus
ArcelorMittal price-consensus-chart | ArcelorMittal Quote
Zacks Rank & Key Picks
ArcelorMittal currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Axalta Coating Systems Ltd. (AXTA - Free Report) , sporting a Zacks Rank #1 (Strong Buy), and The Andersons Inc. (ANDE - Free Report) and Alamos Gold Inc. (AGI - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for AXTA’s current-year earnings is pegged at $1.58, indicating year-over-year growth of 6.8%. AXTA beat the Zacks Consensus Estimate in three of the last four quarters and missed one, with the average earnings surprise being 6.7%. The company’s shares have increased 26.9% in the past year.
The Zacks Consensus Estimate for ANDE’s current-year earnings has been revised upward by 5.1% in the past 60 days. ANDE beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 32.8% on average. The stock has rallied around 49.7% in a year.
The consensus estimate for Alamos’ current fiscal year earnings is pegged at 53 cents, indicating a year-over-year surge of 89.3%. AGI beat the Zacks Consensus Estimate in all of the last four quarters, with the average earnings surprise being 25.6%. The company’s shares have surged 39.2% in the past year.