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ArcelorMittal SA full-year loss widens

Feb 06 2013 09:37 Reuters

Company Data

KUMBA IRON ORE LIMITED [JSE:KIO]

Last traded 0
Change 8,69
% Change 0
Cumulative volume 264428
Market cap 78.59bn

Last Updated: 19-12-2014 at 04:40. Prices are delayed by 15 minutes. Source: McGregor BFA

ANGLO AMERICAN PLC [JSE:AGL]

Last traded 0
Change -0,07
% Change 0
Cumulative volume 1922651
Market cap 300.78bn

Last Updated: 19-12-2014 at 04:40. Prices are delayed by 15 minutes. Source: McGregor BFA

ARCELORMITTAL SOUTH AFRICA LIMITED [JSE:ACL]

Last traded 0
Change 1,36
% Change 0
Cumulative volume 667888
Market cap 12.29bn

Last Updated: 19-12-2014 at 04:40. Prices are delayed by 15 minutes. Source: McGregor BFA

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Price drop hammers ArcelorMittal SA

 

Johannesburg - ArcelorMittal SA [JSE:ACL], a unit of the world's top steelmaker, on Wednesday reported a full-year loss due to a drop in domestic steel sales and a decline in commercial coke sales.

Africa's biggest steelmaker said liquid steel production was down 7% while annual capacity dropped from 8.0 million tonnes to 6.5 million tonnes after deciding last year it was cheaper to shut three electric arc furnaces rather than complete a project to capture emissions.

ArcelorMittal's South African operation reported a headline loss per share of 129 cents, compared with a headline loss per share of 13 cents in the previous year.

The fourth quarter loss was substantially higher than in the previous three months due to a seasonal drop in demand during December.

"We expect the loss making position to be reversed in the first quarter amid signs of improved domestic sales volumes as well as marginally higher prices," said chief executive Nonkululeko Nyembezi-Heita.

Revenue was up 3% to R32.2bn.

Shares in the company have been flat so far this year, compared with a 4% rise in the JSE Top 40 - (Tradeable) [JSE:J200] index.

The company is betting on projects to build renewable power plants, transport infrastructure and water systems to boost its earnings.

A major issue facing the South African unit is the outcome of a dispute over iron ore prices with Kumba Iron Ore [JSE:KIO], a unit of Anglo American [JSE:AGL].

The two firms have been at loggerheads over prices since early 2010 after a preferential deal lapsed. An arbitration hearing will decide if the steelmaker can keep sourcing iron ore from Kumba at a discount.  

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arcelormittal south africa  |  steel
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