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Amsa slips into Q3 loss

Nov 03 2011 08:56 Reuters

Company Data

Arcelormittal Sa Ltd [JSE : ACL]

Last traded R52.45
Change R0.40
% Change 0.77%
Cumulative volume 655,769
Market cap R23.38bn

Last Updated: 25/05/2012 at 19:32. Prices are delayed by 15 minutes. Source: McGregor BFA

 

Top 40 [JSE : J200]

Last traded R29,074.19
Change R-63.65
% Change -0.22%
Cumulative volume 93.53m
Market cap R0.00

Last Updated: 25/05/2012 at 19:33. Prices are delayed by 15 minutes. Source: McGregor BFA

 

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Johannesburg - ArcelorMittal SA [JSE:ACL], a unit of the world's top steelmaker, on Thursday reported a third-quarter loss due to higher costs and lower steel prices, but said earnings in the following three months would improve.

The company reported a headline loss per share for the three months to the end of September of 115 cents. This compares with headline earnings per share of 17c in the same quarter last year.

Results for the quarter were also hit by a recent strike in the steel industry and a shutdown at the company's Saldanha Works operation.

"Operating conditions in the steel industry deteriorated markedly during the third quarter. The local economy weakened measurably, with major steel consuming sectors suffering the most reversals in fortunes," ArcelorMittal said in a statement.

Third-quarter revenue rose to R7.62bn from R7.23bn last year. The company, which sells 90% of its steel in Africa, sold 1.133 million tonnes of steel during the the three months, down 1%.

The company said in September it would lose R1.1bn from a furnace failure at its Newcastle plant.

ArcelorMittal said earnings for the current three months are expected to improve from the third quarter due to "a modest rise in prices on the back of the weaker exchange rate supported by higher production volumes".

Shares in ArcelorMittal South Africa are down more than 14% so far this year, compared with a 0.7% rise in the JSE Top 40 - (Tradeable) [JSE:J200] blue chip index.

ArcelorMittal shares dropped 2.8% to R65.79 on the JSE in Thursday morning trade.

 

 
 
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