ArcelorMittal (NYSE:MT) +9.2% pre-market after Q4 core profit came in above expectations and net debt dropped to a record low.

Q4 EBITDA totaled $925M, better than the average forecast of $858M in a company poll, and net debt fell to $9.3B at the end of 2019, the lowest level since the company was formed in 2006 through the merger of Arcelor and Mittal Steel.

ArcelorMittal has indicated it will substantially increase dividend payments once net borrowings reach $7B, a target it says may be achieved this year.

Results were mostly better than expected and included positive guidance on cash flows, leverage and the demand outlook this year, Citigroup analysts say.

Market conditions remain challenging, yet there are early signs of improvement, particularly in the company's core markets of the U.S., Europe and Brazil, CFO Aditya Mittal says.

On the broader market outlook, the world's top steel producer says it is "more optimistic on the apparent demand outlook for 2020" and forecasts global steel demand to rise 1%-2% this year after expanding 1.1% in 2019.

For now, "the coronavirus will likely have a short-term negative demand impact in China and to a lesser degree elsewhere," the company says, seeing overall steel demand in the country rising by as much as 1% this year.