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Johannesburg - ArcelorMittal South Africa [JSE:ACL], a unit
of the world’s top steelmaker, posted a third-quarter headline loss on
Wednesday and expects an even worse fourth quarter due to lower domestic demand
and production losses.
Africa’s biggest steelmaker reported a headline loss per
share of 42 cents, compared with a headline loss of 115 cents the previous year
and 44 cents in the preceding three months.
“Domestic steel demand remained weak, especially from the
building and construction industry, the main steel consuming sector in South
Africa,” the company said in a statement.
Revenue fell 12% to R7.6bn.
The company said the fourth quarter loss would be
“substantially” higher than in the previous three months due to a seasonal drop
in demand during December and production losses following extended blast furnace
repairs at its Newcastle plant.
The impact would be partially offset by lower prices for raw
materials such as coal and pellets as well as a weaker rand-dollar exchange
rate.
The company declared no dividend.
Shares opened more than 2% lower on the Johannesburg bourse on Wednesday. Shares in the company are down nearly 50% in the year to date, compared with a 15.7% rise in the JSE All Share [JSE:J203] index.
