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Johannesburg - ArcelorMittal SA [JSE:ACL], a unit of the largest global steelmaker, on Tuesday swung to a third-quarter profit but forecast lower earnings in the last quarter of the year.
ArcelorMittal SA's liquid steel output rose by 11% to 910 000 tonnes, but was 8% lower than the previous quarter, it said.
ArcelorMittal SA said sales volumes decreased by 21% to 374 000 tonnes compared with the same period last year. The company said headline earnings per share totalled 17 cents for the three months to end-September compared with a loss of 16 cents a year earlier.
"Sales prices in rand terms were on average 28% higher than the prices achieved a year ago and up 6% on the previous quarter," the ArcelorMittal unit said.
The company said it expected earnings in the fourth quarter of 2010 to be hit by lower international steel prices and the seasonal slowdown in domestic sales.
The company said it would also be affected by a stronger rand against the US dollar.
South African exporters mainly receive payment for their exports in dollars but pay for their local costs in the rand, which has risen more than 25% against the US unit since the beginning of last year.
ArcelorMittal South Africa said a sharp rise in raw material costs and a decline in infrastructure developments in the country had affected its earnings.
ArcelorMittal SA's liquid steel output rose by 11% to 910 000 tonnes, but was 8% lower than the previous quarter, it said.
ArcelorMittal SA said sales volumes decreased by 21% to 374 000 tonnes compared with the same period last year. The company said headline earnings per share totalled 17 cents for the three months to end-September compared with a loss of 16 cents a year earlier.
"Sales prices in rand terms were on average 28% higher than the prices achieved a year ago and up 6% on the previous quarter," the ArcelorMittal unit said.
The company said it expected earnings in the fourth quarter of 2010 to be hit by lower international steel prices and the seasonal slowdown in domestic sales.
The company said it would also be affected by a stronger rand against the US dollar.
South African exporters mainly receive payment for their exports in dollars but pay for their local costs in the rand, which has risen more than 25% against the US unit since the beginning of last year.
ArcelorMittal South Africa said a sharp rise in raw material costs and a decline in infrastructure developments in the country had affected its earnings.
