ArcelorMittal (MT) Stock Declines on Q3 Loss

ArcelorMittal (MT) stock is falling after the company reported lower than expected financial results for the third quarter of 2015.
By Amanda Gomez ,

NEW YORK (TheStreet) -- ArcelorMittal (MT) - Get Report stock is down 0.27% to $5.45 in midday trading after the company reported disappointing financial results for the 2015 third quarter.

The steel and mining company reported a loss of 40 cents per share on revenue of $15.59 billion for the quarter ended September 30.

Analysts had estimated a loss of 7 cents per share on $15.71 billion in revenue for the latest quarter.

Steel shipments declined 2.1% year-over-year to 21.1 million tons, while iron ore production dropped 2.9% to 15.4 million tons.

"The already challenging operating conditions have further deteriorated during recent months, largely due to additional declines in steel prices caused by exceptionally low Chinese export prices," CEO Lakshmi Mittal said in a statement. "Our focus is on ensuring we take all the necessary steps to strengthen our competitiveness in this difficult environment."

ArcelorMittal's mining division has reduced its costs by 17% so far this year, surpassing its target of 15% as the company expects the challenging market conditions to persist through 2016.

The company also suspended its dividend for the remainder of 2015 as it plans to reduce its cash requirements by $1 billion in 2016.

Separately, TheStreet Ratings team rates ARCELORMITTAL SA as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:

We rate ARCELORMITTAL SA (MT) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins, weak operating cash flow, generally disappointing historical performance in the stock itself and generally high debt management risk.

You can view the full analysis from the report here: MT

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Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.

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