Dahlman Rose Comments On ArcelorMittal Following Earnings Report
February 09, 2011 11:48 AM
ArcelorMittal (NYSE: MT) reported 4Q10 results roughly in line with Dahlman Rose and consensus estimates. Dahlman is increasing its 2011 estimate and sees further upside in 2012, in accordance with its recently revised price deck. Dahlman is maintaining its Hold rating.
The company did not give quantitative 2Q11 guidance, but did indicated that 2Q11 results should see most of the impact from the recent price hikes. Results in 1Q11 will also benefit from higher shipments as capacity utilization is expected to increase to 76% from 69%.
Dahlman likes the international diversification of ArcelorMittal's steelmaking assets and applaud the moves the company is making to increase its level of raw material integration. However, it believes that uncertainty regarding potential acquisitions may weigh on the shares in the near-term.
MT is trading lower at $38.09
