LONDON -(Dow Jones)- Steel titan ArcelorMittal (MT) expects to reduce its net debt below its target of $22.5 billion by the time it announces its second quarter results in July, the company's Chief Financial Officer said Thursday.
"We expect to be below that [$22.5 billion target] when we announce second quarter results," Aditya Mittal told journalists on a call. When asked if the company would consider cutting its dividend or issue equity in order to shore up its balance sheet, Mittal added that "at this point in time we don't believe we have to" resort to other alternatives in order to shore up the company's balance sheet.
He noted that the company is proceeding well with its non-core asset divestment program, having sold $1.6 billion in assets since September 2011 and more to come before the end of the year.
The company also expects higher operating cashflows to also help reduce its net debt, which reached $23.6 billion as of the end of March.
Net debt rose $1.1 billion in the first quarter due to decreased cash flow from operations, foreign exchange losses and dividends paid, which were partially offset by cash inflow from the partial divestment of its stake in Turkey's largest flat steel producer Erdemir (EREGLI.IS).
-By Alex MacDonald, Dow Jones Newswires; +44 (0)20 7842 9328; firstname.lastname@example.org
(END) Dow Jones Newswires
May 10, 2012 03:13 ET (07:13 GMT)
Copyright (c) 2012 Dow Jones & Company, Inc.