This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

ARCELORMITTAL FLAT CARBON EUROPE REPORTS €340 MILLION FIRST HALF OPERATING LOSS

Regulatory News:

ArcelorMittal, the world’s leading steel company, today announced results for its Flat Carbon Europe segment for the six month period ended June 30, 2012.

The segment recorded an operating loss of €340 million which includes restructuring costs but excludes interest and tax costs. This follows a loss of €499 million in the second half of 2011 reflecting the continued difficult operating environment in Europe.

Compared to the same period of 2011, the segment’s crude steel production fell 8% from 15,501 Mt to 14,325 Mt as output was adjusted to weak demand levels.

Steel shipments for Q2 2012 fell to 6,771 Mt, a decrease of 9.2% as compared to 7,461 Mt for 1Q 2012. This was due to lower demand in Europe, following the end of restocking, as well as lower exports.

Sales were €5,634 million for 2Q 2012, a decrease of 4.3% as compared to €5,887 million for 1Q 2012. Sales decreased primarily due to lower steel shipment volumes offset in part by higher average steel selling prices (+4.8%).

Capital expenditure in the segment in the first half of 2012 was €375 million, slightly higher than the €356 million spent in the same period of the previous year.

Steel demand in the developed world has been impacted globally as a result of the severe problems experienced in the economy since the onset of the financial crisis at the end of 2008. Developed world demand remains far below its peak, at only 410 million tonnes in 2011 compared with 492 million tonnes in 2007. The situation is most severe in Europe, which has been further exacerbated by the as yet unresolved euro crisis and the recovery is limited by weak consumer demand, government expenditure cuts and slow rebound in investment growth.

Against this very challenging backdrop, ArcelorMittal is taking measures to optimise production at its most competitive sites, improve competitiveness and invest in its quality assets and research and development to ensure it remains the market leader in automotive steel.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 17,630.27 +189.68 1.09%
S&P 500 2,093.25 +25.61 1.24%
NASDAQ 5,089.2060 +49.43 0.98%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs