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Key Updates to Watch for in ArcelorMittal’s 2Q17 Call

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ArcelorMittal’s 2Q17 call

ArcelorMittal (MT) is scheduled to release its 2Q17 earnings on July 27 and plans to hold a conference call on the same day. Previously in this series, we looked at analysts’ estimates for ArcelorMittal’s 2Q17 earnings. In this article, we’ll see what markets might watch for in ArcelorMittal’s 2Q17 call.

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Acquisition

In 2Q17, a consortium led by ArcelorMittal reached a binding agreement to buy the Ilva steel plant in Italy. During its 2Q17 earnings call, markets will watch ArcelorMittal’s views on how this acquisition would benefit shareholders. Also, markets will likely watch for ArcelorMittal’s projection on when the company expects the acquisition to be EPS (earnings per share) accretive.

There has been a flurry of acquisitions in the steel space over the last eight months. Nucor (NUE) made two acquisitions in the downstream steel business late last year. Earlier this month, AK Steel (AKS) also announced its acquisition of Precision Partners for $360 million in cash. U.S. Steel (X) is also investing to “revitalize” its facilities. These acquisitions reflect steel companies’ optimism in regards to a sustainable turnaround in the industry.

Steel industry outlook

Being the largest steel maker (XME), analysts closely follow ArcelorMittal’s views on the steel industry’s outlook. During its 2Q17 earnings call, markets will watch what ArcelorMittal has to say on the steel industry’s health. Specifically, the company’s views on the recent surge in Chinese steel prices, volatility in seaborne iron ore prices, and the ongoing Section 232 probe in the United States could be of interest to analysts covering the steel industry.

In the next and final part of this series, we’ll look at ArcelorMittal’s valuation ahead of its 2Q17 earnings release.

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