Falling European demand widens ArcelorMittal Q4 loss to $1 bn

The company has plans to spent around $4-4.5 billion in the current year as capex.

hidden December 20, 2014 06:25:59 IST
Falling European demand widens ArcelorMittal Q4 loss to $1 bn

Luxembourg/New Delhi: The world's largest steel maker ArcelorMittal's loss widened to $1 billion in October-December 2011 due to subdued European demand and an $1.3 billion outgo on deferred tax, impairments and restructuring charges.

"The progressive recovery that we have been experiencing was impacted in the second half of the year by the growing uncertainty over the economic situation in Europe, which particularly affected sentiment and performance in the fourth quarter," ArcelorMittal chairman and CEO Lakshmi Mittal said.Falling European demand widens ArcelorMittal Q4 loss to 1 bn

The company, which had reported $780 million loss in October-December quarter of 2010, partly attributed the loss during the fourth quarter to $1.3 billion non-cash charges, which deferred tax, asset impairments and restructuring.

Net sales of the company, however, were up at $22.4 billion during the reporting quarter against $20.6 billion in the last quarter of 2010. It sold 20.6 million tonnes steel during the reporting quarter and 21.1 million tonnes in the immediate past quarter.

"Sales were lower during the fourth quarter of 2011 as compared to the third quarter of 2011 primarily due to lower average steel selling prices (-6.2 per cent) and lower steel shipment volumes (-2.5 per cent)," the company said.

Admitting that the market condition in Europe remained "a live concern", Mittal said an improvement in sentiment could be seen now against the fourth quarter, but sales volume for the first six months were expected to be similar to the first half of 2011.

"We are again targeting increased production from our mining business," he said. ArcelorMittal produced 21.7 million tonnes steel in the October-December quarter of last year.

For the year as a whole, ArcelorMittals' net income was also down to $2.3 billion against $2.9 billion in 2010. Sales, however, rose by 0.9 percent to 85.8 million tonnes as against 85 million tonnes in 2010.

ArcelorMittal has plans to spent around $4-4.5 billion in the current year as capex. This includes investment in the mining sector as well.

PTI

Updated Date:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Anil Agarwal indicates he is open to raising bid for Essar Steel, says Vedanta best suited to take over indebted firm
Business

Anil Agarwal indicates he is open to raising bid for Essar Steel, says Vedanta best suited to take over indebted firm

Anil Agarwal said Vedanta's Rs 35,000-36,000 crore offer in the first round of bidding for Essar Steel was the highest in the three-way race for Essar Steel that lenders are auctioning to recover about Rs 50,800 crore of overdue loans

ArcelorMittal, Gerdau to sell stakes in US steel mill for $770 mn
Corporate

ArcelorMittal, Gerdau to sell stakes in US steel mill for $770 mn

ArcelorMittal is the world's leading steel and mining company, with a presence in more than 60 countries and an industrial footprint in over 20 countries.<br />

ArcelorMittal may close more sites in Europe
Business

ArcelorMittal may close more sites in Europe

The group has already permanently shutdown two plant furnaces in Liege, Belgium. <br /><br />