Steel giant, ArcelorMittal (MT) signed a $6 billion Revolving Credit Facility to replace the €5 billion Revolving Credit Facility under its existing €17 billion Credit Facility Agreement dated November 30, 2006.
The new revolving credit facility will mature in 5 years and will be used for the general corporate purposes of the company.
ArcelorMittal is also evaluating its options of building small plants in India with an investment of $1.5–3 billion each. ArcelorMittal is expected to get over 1500 acres of land in the next 30 days for the construction of its $ 6.4 billion project in the Karnataka state.
The Karnataka steel plant will have a capacity of six million metric tons a year.
In the medium term, the company intends to take a modular approach and also evaluate smaller projects in various Indian states, with potential individual investments estimated in the $ 1.5–3.0 billion range. It desires to diversify its initiatives in India.
In February, ArcelorMittal reported diluted net loss of 51 cents per share in the fourth quarter of 2010, much below the Zacks Consensus Estimate of 19 cents as well as last year’s 89 cents. The reported loss was attributable to impairments and some were also related to Aperam. However, in fiscal 2010, ArcelorMittal earned $1.72 per diluted share versus 11 cents in the prior year.
Total steel shipments in the fourth quarter of 2010 were 21.1 million metric tons compared with 19.5 million metric tons in the year-ago quarter. In fiscal 2010, total steel shipments climbed 22% year over year to 85.0 million metric tons from 69.6 million metric tonnes in the prior year.
Currently, ArcelorMittal has a short-term (1 to 3 months) Zacks #3 Rank (Hold) on the stock.
ARCELOR MITTAL (MT): Free Stock Analysis Report
Zacks Investment Research
