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.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV