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Publication date: November 21, 2024
- Year of incorporation: 2006 (formed from the merger of Arcelor and Mittal Steel)
- Year added to the AEX: 2007
- Highest share price ever: About €118 in 2008
- Average trading volume: About 2.4 million shares per day
- Average performance since AEX uptake: Average +5% over the past year
Introduction to the Company
ArcelorMittal S.A. is the world's largest steel and mining company, headquartered in Luxembourg. The company operates in over 60 countries and has production facilities across North and South America, Europe, Asia, and Africa. ArcelorMittal combines expertise in steel production with mining activities and offers a wide range of products and solutions used in industries such as automotive, construction, energy, and household appliances. The company is listed on Euronext Amsterdam and the New York Stock Exchange under the ticker symbol MT.
Key figures & performance
In 2023, ArcelorMittal reported revenue of €61.76 billion, driven by global demand for steel and minerals. The company achieved a net profit of €1.87 billion, a decline compared to 2022 due to higher raw material costs and economic uncertainties in key markets. ArcelorMittal’s market capitalization is approximately €18.8 billion, and shareholders received a dividend of €0.42 per share in 2023. The company maintains a strong focus on operational efficiency and cost management to navigate the volatility of the steel sector.
History & development
ArcelorMittal was established in 2006 through the merger of Mittal Steel Company and Arcelor, two of the world’s largest steel producers. Mittal Steel, led by Indian industrialist Lakshmi Mittal, was already a dominant force in the steel industry. The merger strengthened the company’s global position, creating an enterprise with unparalleled scale and worldwide reach.
In recent years, ArcelorMittal has focused its strategy on improving sustainability and developing innovative steel products. The company has made significant investments in technologies to reduce CO2 emissions and is a pioneer in producing "green steel" using hydrogen and other low-carbon processes.
Industry & competition
ArcelorMittal operates in the global steel industry, which is influenced by economic cycles, demand from the construction and automotive sectors, and raw material prices. The company competes with major players like Nippon Steel, China Baowu Steel Group, and POSCO. ArcelorMittal differentiates itself through vertical integration with its own mining operations, offering a strategic advantage in cost management and raw material supply.
ArcelorMittal's impact on the AEX
ArcelorMittal holds a relatively small weight in the AEX index, at approximately 1.17% (measured in 2024). The stock’s performance is influenced by global macroeconomic trends, raw material prices, and steel demand. As a cyclical stock, ArcelorMittal exhibits greater volatility compared to defensive stocks in the index.
Investment analysis & outlook
ArcelorMittal is regarded by analysts as an interesting investment opportunity, particularly due to global infrastructure growth and increasing steel demand in emerging markets. The company continues to benefit from its economies of scale, vertical integration, and innovations in sustainable steel. Potential risks include economic slowdowns, rising energy and raw material costs, and increasing competition from Chinese steel producers.
Below, you can track the performance of ArcelorMittal compared to the AEX over the past five years. This highlights the stock’s volatility, which responds more strongly to economic fluctuations than the broader market.
News & Updates
Recently, ArcelorMittal announced a significant increase in its investments in green technologies, allocating a budget of $10 billion over the next ten years to reduce CO2 emissions from its production processes. Additionally, the company has entered into strategic partnerships with governments and other companies to promote sustainable steel solutions. The acquisition of several mining facilities in Brazil in 2023 strengthened its vertical integration and improved raw material supply.
For more information about ArcelorMittal's performance and strategic plans, visit the official website: ArcelorMittal.com.
Disclaimer: Investing involves risk. Our analysts are not financial advisors. Always consult an advisor when making financial decisions. The information and tips provided on this website are based on our analysts' own insights and experiences. They are therefore for educational purposes only.
