ArcelorMittal faced a sharp 38% decline in 2022 as slack in the steel market intensified, especially toward year end when the company shuttered some key production facilities, including one of the two blast furnaces in Gijón. The profit drop in the final quarter alone reached 93%, underscoring the pressure on earnings during a difficult period for the sector.
Net income for fiscal 2022 totaled $9.3 billion, down from $15.0 billion in 2021. The 2022 operating result stood at $10,300 million, versus $17 billion in 2021, while EBITDA dropped to $14.2 billion from $19.4 billion a year earlier. These figures reflect ongoing market headwinds as the company implemented strategic actions to preserve liquidity and competitiveness.
“Even with the challenges that emerged as the year progressed, the results highlight the benefits of a strengthened asset base and a tighter cost structure”, noted the ArcelorMittal chief executive. The leadership emphasised the benefits of second-half adjustments in production and energy use, which helped bolster resilience and positioned the group for future opportunities.
Arcelor plans to eliminate 120 positions in Asturias before green plan adjustment
ArcelorMittal ended 2022 with a net debt reading near a historical low of $2,200 million, marking a substantial improvement from about $4,000 million at the end of 2021. At year-end, gross debt was reported at $11.7 billion, while cash and cash equivalents reached $9.4 billion. These liquidity metrics reinforce the company’s ability to fund ongoing operations and strategic initiatives.
An ongoing focus on free cash flow and balance sheet strength supported growth initiatives and a readiness to seize opportunities in higher-growth markets. The leadership reiterated the aim of maintaining leadership in low-carbon steel production, aligning with broader decarbonisation trends in the industry. In the latter half of 2022, customer activity and demand indicators rose, contributing to stronger steel consumption and improved margins for steel products as the company moved through the decarbonisation cycle.
Looking ahead, the company projected higher capital expenditure for 2023, estimating investments in a range between $4,500 million and $5,000 million. European regulatory authorities were reviewing a plan to provide public support to back an investment exceeding €1,000 million in Asturias, intended to decarbonise the Gijón facility and advance broader sustainability objectives. The forthcoming decisions from the European Commission are pivotal to unlocking this strategic initiative and shaping the region’s industrial transition.