ArcelorMittal, the Luxembourg-based steel giant that's in the process of selling off most of its Northwest Indiana operations, lost $300 million in the third quarter, as compared to $600 million in the second quarter.
The steelmaker, which will retain ownership of its research and development center in East Chicago, did see an improved operating performance with gross operating income of $700 million in the third quarter, as compared to an operating loss of $300 million in the second quarter. Despite the coronavirus pandemic, it pulled in $900 million in gross earnings before interest, taxes, depreciation and amortization in the third quarter, as compared to $700 million in EBITDA in the second quarter.
ArcelorMittal said the auto business and other end markets had been recovering.
“The third quarter marked an improved operating performance for the group with steel markets recovering gradually from the very challenging second quarter after the ending of lockdowns. All steel segments saw improved demand with Brazil and ACIS showing particularly encouraging profitability improvement," ArcelorMittal Chairman and CEO Lakshmi Mittal said.
"Our mining segment also delivered a strong performance taking advantage of the higher iron-ore price environment and outperforming production targets. The quarter was also characterized by strong cash flow generation and the achievement of some important strategic milestones. In this very tough environment, we take considerable satisfaction from the fact that our deleveraging program and asset disposal program are now complete."
ArcelorMittal is selling off almost all of its U.S. assets, including its steel mills in Northwest Indiana, to Cleveland-Cliffs.
Following the agreed sale of ArcelorMittal USA, "we can now prioritize returning cash to shareholders," he said.