All data is delayed
Loading...
See More

Price drop hammers ArcelorMittal SA

Jul 25 2012 11:39
Reuters

Company Data

ARCELORMITTAL SOUTH AFRICA LIMITED [JSE:ACL]

Last traded 5
Change 0
% Change 1
Cumulative volume 207052
Market cap 0

Last Updated: 01/01/0001 at 12:00. Prices are delayed by 15 minutes. Source: McGregor BFA

KUMBA IRON ORE LIMITED [JSE:KIO]

Last traded 173
Change -2
% Change -1
Cumulative volume 422959
Market cap 0

Last Updated: 01/01/0001 at 12:00. Prices are delayed by 15 minutes. Source: McGregor BFA

Johannesburg - ArcelorMittal SA [JSE:ACL], a unit of the world's top steelmaker, reported an 84% drop in first-half earnings on Wednesday. Hit by lower prices and soft demand, the company said it expects a further reduction in the third quarter.

Africa's biggest steelmaker said diluted headline earnings per share for the six months to end-June totalled 26 cents compared with 166c in the same period last year.

"Third-quarter financial results are expected to extend the headline loss incurred in second quarter on the back of lower steel prices and a further decline in domestic demand," the company said in a statement.

ArcelorMittal South Africa, which sells 90% of its steel in Africa, said revenue rose 7% to R17.8bn.

It did not declare an interim dividend.

The company also said it was in talks with Kumba Iron Ore [JSE:KIO] to extend an interim iron ore supply agreement which expires on July 31.

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

ArcelorMittal South Africa paid R1.1bn more for iron ore in 2011 due to the dispute.

* Follow Fin24 on Facebook, Twitter and Google+.
arcelormittal sa  |  steel  |  mining

NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.
 

Company Snapshot

We're Talking About...

Savings Month

It's never too late to start saving. Visit our special issue and add your voice.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

The proposal to nationalise SARB will

Previous results · Suggest a vote

Loading...