Courtesy of Benzinga.
Steel giant ArcelorMittal (NYSE: MT) has completed the divestment of its 78% stake in European port handling and logistics company ATIC Services S.A. (ATIC) to HES Beheer for €155.4 million (roughly $213 million).
With this transaction, HES Beheer now owns 100% stake in ATIC where it previously held 22% stake. The transaction reflects ArcelorMittal`s strategy of selective deposal of non-core assets.
ArcelorMittal posted a net loss of $0.2 billion or 12 cents per share in first-quarter 2014, narrower than a net loss of $0.3 billion or 21 cents a year ago.
Revenues inched up 0.2% year over year to $19.8 billion in the reported quarter. Sales were almost unchanged from the prior quarter as improved steel shipments were partly offset by lower average steel selling prices, seasonally lower market priced iron ore shipments and lower iron ore reference prices. Steel shipments rose 2.4% year over year to 21 million metric tons.
ArcelorMittal reaffirmed its projection for earnings before interest, taxes, depreciation and amortization (EBITDA) of about $8 billion for 2014. The company expects a recovery in Europe and the U.S. to aid its results this year. It forecasts net interest expense to be roughly $1.6 billion in 2014, down from $1.8 billion in 2013, mainly due to lower average debt.
ArcelorMittal currently has a Zacks Rank #3 (Hold).
Other companies in the steel and related industries with a favorable Zacks Rank include Grupo Simec S.A.B. de C.V. (AMEX:SIM), Universal Stainless & Alloy Products Inc. (NASDAQ: USAP) and ThyssenKrupp AG (TYEKF). While Grupo Simec and Universal Stainless & Alloy Products sport a Zacks Rank #1 (Strong Buy), ThyssenKrupp carries a Zacks Rank #2 (Buy).
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The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.
