- ArcelorMittal (NYSE:MT) -6.7% premarket after confirming plans to seek $3B in new capital from shareholders to shore up its finances following FY 2015 losses of nearly $8B.
- MT blames the loss - which includes a $6.7B setback in Q4, with $4.8B in impairment charges mostly related to its iron ore operations - mainly on falling steel prices that were depressed by a surge of Chinese exports, and to writeoffs in the company’s mining business.
- In an indication of continuing difficult conditions, MT forecasts FY 2016 EBITDA of at least $4.5B, compared with $5.2B in 2015, amid relatively weak demand for steel this year, with only the U.S. market showing growth.
- MT is tapping shareholders for funds rather than focus on asset sales because there are signs the steel market has bottomed out, CFO Aditya Mittal says.
- MT also will sell its 35% stake in Spain’s automotive metals component firm Gestamp Automoción for ~$1B by the end of June as part of its attempt to pay down debt; the company says it wants to reduce net debt to less than $12B from $15.7B at the end of December.
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Earlier: Bloomberg: ArcelorMittal preparing €3B capital raise (Feb. 4)