ArcelorMittal

As a response, ArcelorMittal is cutting annual production in Europe by about 4.2 million tons in the second half of the year compared with its previous production plan. We now see EBITDA in ArcelorMittal's European division reducing to less than $1.8 billion in 2019, down from a level of $3.8 billion in 2018. The stable outlook reflects our view that despite the current softness in the market, ArcelorMittal will be able to generate material positive cash flows in the coming years, allowing it to reduce its absolute debt, and over time build some headroom under the rating to mitigate the inherit volatility of the steel industry. Given our expectation that the steel industry will see some recovery in the second

...ArcelorMittal faces a pivotal period as it plans to execute various strategic projects while market conditions soften. The company plans to turnaround recently acquired Italian steel producer Ilva; complete the acquisition and integration of Essar; continue executing its five-year strategic plan Action 2020; and product mix improvement projects in Mexico and Brazil. At the end of June, the company completed the disposal of steel assets in Central and Eastern Europe (CEE) and Western Europe. This comes at a time when its core markets are showing signs of a slowdown, especially in Europe where automotive demand has weakened. The company's results in fourth-quarter 2018 and first-quarter 2019 have already deteriorated, with aggregate EBITDA in the last two quarters of $3.7 billion compared with $4.7 billion in the previous period. We are revising our 2019 adjusted EBITDA projection down to $7.5 billion-$8.0 billion from more than $9 billion we projected earlier this year, and about $11 billion...

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