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Johannesburg - ArcelorMittal [JSE:ACL] reported a 35% rise in third-quarter profit on Thursday as sales rose but it said a fall in domestic sales would ensure a weaker fourth-quarter result.
The steel producer posted headline earnings of 50 cents per share for the three months to end-September compared with 37 cents in the previous quarter.
The company, which sells 90% of its steel in Africa, said fourth-quarter earnings would be lower as domestic sales were expected to fall significantly due to the normal seasonal slowdown and general weakness in the domestic market.
It also said it would write off R1.8bn on the value of its mine assets after it agreed to pull out of the management and operation of its Thabazimbi iron ore mine.
This follows the finalisation of a supply agreement with Kumba Iron Ore [JSE:KIO] on Tuesday.
The agreement resolves a four-year dispute with Kumba, a division of Anglo American [JSE:AGL], and secures the steel maker's future iron ore requirements at a set cost.
Shares in ArcelorMittal South Africa opened 2.4% firmer. The stock has added more than 12% this year but has underperformed a 16% gain in the JSE's All Share index.
The steel producer posted headline earnings of 50 cents per share for the three months to end-September compared with 37 cents in the previous quarter.
The company, which sells 90% of its steel in Africa, said fourth-quarter earnings would be lower as domestic sales were expected to fall significantly due to the normal seasonal slowdown and general weakness in the domestic market.
It also said it would write off R1.8bn on the value of its mine assets after it agreed to pull out of the management and operation of its Thabazimbi iron ore mine.
This follows the finalisation of a supply agreement with Kumba Iron Ore [JSE:KIO] on Tuesday.
The agreement resolves a four-year dispute with Kumba, a division of Anglo American [JSE:AGL], and secures the steel maker's future iron ore requirements at a set cost.
Shares in ArcelorMittal South Africa opened 2.4% firmer. The stock has added more than 12% this year but has underperformed a 16% gain in the JSE's All Share index.
