ArcelorMittal SA (NYSE:MT) said Friday it cannot safely and sustainably restart operations at its ArcelorMittal Kryvyi Rih plant in Ukraine after a series of missile strikes damaged the site and killed employees.
The decision follows company statements issued on Aug. 17 and Sept. 14 after earlier attacks on the facility.
Four Missile Strikes Hit ArcelorMittal Kryvyi Rih
ArcelorMittal said the Ukrainian operation was targeted by four missile strikes over the past five weeks. The latest attack occurred Sept. 21.
The attacks killed five employees and injured 17 others. One employee remains in critical condition. The strikes also caused extensive damage to production facilities.
ArcelorMittal Kryvyi Rih CEO Mauro Longobardo said the company had concluded that it could no longer operate the site safely.
The company is discussing the plant’s future with the Ukrainian government. For now, it plans to preserve key infrastructure so production could potentially restart after the war ends.
Expects $1 Billion Impairment
ArcelorMittal expects to record a non-cash impairment charge of about $1 billion. The charge will mainly reflect reduced value for property, plant and equipment at Kryvyi Rih.
Since Russia’s invasion of Ukraine began in February 2022, ArcelorMittal has provided more than $700 million in financial support to the Ukrainian operation.
The company said it has also introduced measures to support employees and their families during the conflict.
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ArcelorMittal Stock Analysis
ArcelorMittal stock rose nearly 2% in Friday’s premarket session as broader risk appetite improved ahead of the opening bell. Nasdaq futures gained 0.59%, while S&P 500 futures rose 0.36%.
ArcelorMittal remains in a strong long-term uptrend. The stock has gained about 97% over the past 12 months and remains well above its 200-day simple moving average of $61.44.
Its 50-day SMA of $72.25 also remains above the 200-day average. That keeps the broader technical trend positive.
However, near-term momentum has weakened. ArcelorMittal is trading about 2.9% below its 20-day SMA of $74.36. At the same time, the stock is hovering near its 50-day average, making that level an important support zone.
The MACD is below its signal line, while the histogram remains negative. That points to fading short-term momentum.
Resistance sits near $76, above the 20-day moving average. Support is near $72, close to the 50-day SMA.
Analyst Outlook
ArcelorMittal carries a Buy consensus rating, with an average price forecast of $75.50.
Morgan Stanley initiated coverage with an Overweight rating and an $82 price forecast on Aug. 24. Wells Fargo maintained an Equal-Weight rating and raised its price forecast to $69 on July 31. JPMorgan upgraded the stock to Neutral on July 10.
The stock trades at a price-to-earnings ratio of about 30 times.
ArcelorMittal Benzinga Edge Rankings
ArcelorMittal’s Benzinga Edge scorecard shows particularly strong momentum, value and quality readings.
The stock has a Momentum score of 94.28, a Value score of 79.91 and a Quality score of 70.56. Its Growth score is significantly weaker at 9.71.
Overall, the Edge rankings point to strong price momentum and supportive valuation metrics, while underlying growth remains a weaker part of the profile.
Top ETF Exposure
The American Beacon GLG Natural Resources ETF (NYSE:MGNR) holds ArcelorMittal at a 4.57% portfolio weight.
As a result, sizable inflows or outflows from the ETF could contribute to buying or selling pressure in ArcelorMittal shares.
Price Action
MT Stock Price Activity: ArcelorMittal shares were up 1.73% at $72.53 during Friday’s premarket session, according to Benzinga Pro data.
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