Why ArcelorMittal Stock Crashed Today
Shares of international steelmaking giant ArcelorMittal (NYSE: MT) closed Friday, trading down 8.9% after announcing that it will "idle its steelmaking operations in Kryvyi Rih, Ukraine in order to ensure the safety and security of our people and assets."
Arcelor said that it had already been "evaluating the situation on a daily basis," however, and that "production had previously been reduced with the plant operating at a technical minimum (approximately one-third of its normal production levels)." So today's closure announcement is actually functionally equivalent to Arcelor saying "we're reducing output by one-third of capacity".
Does that justify a near-9% haircut to Arcelor's stock price, though?
Source Fool.com
