NEW YORK (TheStreet) -- Shares of ArcelorMittal (MT) are down -6.05% to $14.92 on very heavy trading volume this afternoon after the major steelmaker reduced its forecast for earnings this year after lower than anticipated iron ore prices cut into the profit of its mining business, Reuters reports.
The company said it now expected yearly core profit to be "in excess of" $7 billion, below the previous figure of about $8 billion.
Separately, ArcelorMittal said today that it signed deals to purchase stakes in an iron ore project in Guinea as it looks to increase its mining output and leverage its existing presence in the region, Reuters noted..
TheStreet Ratings team rates ARCELORMITTAL SA as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate ARCELORMITTAL SA (MT) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, impressive record of earnings per share growth and revenue growth. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, poor profit margins and generally higher debt management risk."