ArcelorMittal Flat Carbon Europe reports EUR303 million Q3 operating loss
Luxembourg, 31 October 2012 - ArcelorMittal today announced results for its Flat Carbon Europe segment for the third quarter of 2012.
The segment recorded an operating loss of EUR303 million which includes restructuring costs but excludes interest and tax costs. The total operating loss now for the first nine months of 2012 is EUR643 million reflecting the continued difficult operating environment in Europe where further weakening of demand has combined with a seasonal slowdown.
Compared to 2Q 2012, the segment's crude steel production fell 5.9% to 6.7 Mt in 3Q 2012
Steel shipments for 3Q 2012 fell to 5.8 Mt, a decrease of 13.8% as compared to 6.8 Mt for 2Q 2012; and a decrease of 8.6% as compared to 6.4 Mt for 3Q 2011 reflecting the decline is not just seasonal
Sales were EUR4,9billion for 3Q 2012, a decrease of 12.5% as compared to EUR5,6 billion for 2Q 2012. Sales decreased primarily due to lower steel shipment volumes and lower average steel selling prices (-1.0%).
Capital expenditure in the segment for the third quarter of 2012 was EUR145 million and for the first nine months of 2012 CAPEX spend reached EUR520 million
Europe has seen declining GDP since the 3rd quarter of 2011 due to continuing decline in investment and consumption, as austerity and record unemployment weigh on demand. No sustained pick-up in Europe is expected before 2014 and the eurozone as a whole is likely to at best stagnate in 2013. PMI remains below 50 for a fifteenth month indicating manufacturing contraction. Apparent steel demand in the European Union in the first three quarters of 2012 is estimated to have declined around 9.5% year on year and we expect it to decline by close to 8% for the year as a whole. EU demand is now at least 28% below 2007 levels.
Robrecht Himpe, Head of Flat Carbon Europe and member of the ArcelorMittal management committee, said "Underlying steel demand continues to weaken in Europe. Our customers remain cautious and uncertainty is causing them to scale back capital investment. Auto demand is an obvious example and there have been more announcements in recent weeks from major manufacturers as they continue to review activity in Europe. During the last quarter we've continued to implement measures to respond to this situation, to deliver excellent service to our customers and to become more competitive."
ArcelorMittal is the world's leading steel and mining company, with a presence in more than 60 countries.
ArcelorMittal is the leader in all major global carbon steel markets, including automotive, construction, household appliances and packaging, with leading R&D and technology. The Group also has a world class mining business with a global portfolio of over 20 mines in operation and development, and is the world's 4th largest iron ore producer. With operations in over 22 countries spanning four continents, the Company covers all of the key industrial markets, from emerging to mature, and has outstanding distribution networks.
Through its core values of sustainability, quality and leadership, ArcelorMittal commits to operating in a responsible way with respect to the health, safety and well-being of its employees, contractors and the communities in which it operates. It is also committed to the sustainable management of the environment. It takes a leading role in the industry's efforts to develop breakthrough steelmaking technologies and is actively researching and developing steel-based technologies and solutions that contribute to combat climate change. ArcelorMittal is a member of the FTSE4Good Index and the Dow Jones Sustainability World Index.
In 2011, ArcelorMittal had revenues of $94.0 billion and crude steel production of 91.9 million tonnes, representing approximately 6 per cent of world steel output. The Group's mining operations produced 54 million tonnes of iron ore and 8 million tonnes of metallurgical coal.
ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MT), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS).
For more information about ArcelorMittal visit: www.arcelormittal.com
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ArcelorMittal Corporate Communications|
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Source: ArcelorMittal S.A. via Thomson Reuters ONE
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