ArcelorMittal Faces Small Profit Risk from Closing Ukraine Site
Dow Jones17:27
0927 GMT - ArcelorMittal faces a small downside risk to its third-quarter earnings due to being unable to safely restart its Ukrainian site, J.P. Morgan's Dominic O'Kane says. The company will record a non-cash impairment of around $1 billion, which is not expected to impact earnings before interest, taxes, depreciation and amortization. However, JPM sees a risk of higher EBITDA losses in the "other" segment, which includes the Ukraine operation. The contribution of the site to group profit is relatively small, the analyst notes. Wider disruption at Ukrainian steelmaking sites could positively impact European steel prices, JPM noted. Shares are up 2.2%.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Comments