12-18-2016, 03:52 AM
Though ArcelorMittal's (NYSE:MT) mining segment, which includes iron ore, is only a small portion of its revenue, it is set to deliver strong EBITDA growth going forward. An improvement in iron ore prices due to robust demand in the U.S., coupled with the company's cost reductions, will play a key role in helping ArcelorMittal improve its performance in this segment. More specifically, last quarter, ArcelorMittal got just under 6% of its revenue from the mining segment at $809 million, but it accounted for almost 11% of its EBITDA. In fact, last quarter, ArcelorMittal's mining EBITDA grew 42% year-over-year, while for the first nine months of the year, the segment's EBITDA has increased 25%. This growth in the mining segment's profitability can be attributed to the rapid rise in iron ore prices.
ArcelorMittal: Don't Miss This Key Catalyst - ArcelorMittal (NYSE:MT) | Seeking Alpha