ArcelorMittal, the global steel and mining giant, has demonstrated remarkable resilience in its third quarter 2024 performance, posting solid financial results despite challenging market conditions. The company's strategic diversification and operational efficiency have helped maintain stability in a complex economic environment, while continuing to advance its position as the world's leading integrated steel and mining company.
The financial performance for Q3 2024 showed sales of $15.2 billion, representing a 6.5% decrease from the previous quarter's $16.2 billion. The company achieved an EBITDA of $1.6 billion, with an EBITDA per metric ton of $118, significantly above the company's historical average. Operating income stood at $663 million, reflecting the company's ability to maintain profitability despite market pressures. These results underscore ArcelorMittal's robust business model and effective cost management strategies.
ArcelorMittal's commitment to safety remains paramount, with the completion of a comprehensive safety audit by dss+ providing six key recommendations for implementation. The company's Lost Time Injury Frequency rate was 0.88 in Q3 2024, indicating ongoing focus on workplace safety improvements across its global operations. The company has pledged to accelerate the implementation of these recommendations, demonstrating its unwavering commitment to employee safety.
The company's strategic investments and growth initiatives continue to progress, with significant developments in various regions. Notable achievements include the commissioning of renewable power projects in India, the successful ramp-up of operations at the Mexico hot strip mill, and the completion of the Vega CMC project in Brazil. These projects are expected to contribute an additional $1.8 billion to EBITDA potential relative to historical normalized levels. The company's investment in Vallourec, acquiring a 28.4% stake for $1.0 billion, further demonstrates its strategic growth ambitions.
Financial strength remains a cornerstone of ArcelorMittal's strategy, with net debt of $6.2 billion as of September 30, 2024. The company maintains a robust balance sheet while continuing its commitment to shareholder returns, having repurchased 1.5% of outstanding shares during Q3 2024, bringing the total reduction in fully diluted share count to 37% since September 2020. This balanced approach to capital allocation demonstrates the company's commitment to both growth investments and shareholder returns.
The company's regional performance shows varying results, with North America experiencing some challenges due to price-cost effects, while Brazil demonstrated improvement through higher volumes and lower costs. European operations faced seasonal effects and restructuring costs, particularly at the Krakow facility in Poland. The Mining segment contributed significantly with iron ore production increasing by 13.1% to 6.6 million metric tons in Q3 2024.
ArcelorMittal's strategic positioning and global presence continue to provide advantages in navigating market challenges. The company maintains a positive outlook on medium to long-term prospects, supported by its diverse portfolio of assets and ongoing strategic investments in growth projects and decarbonization initiatives. The company's renewable energy portfolio has expanded to 2.1GW, including investments in India, Brazil, and Argentina, demonstrating its commitment to sustainable operations.
