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

Steelmaker ArcelorMittal Posts $709M 3Q Loss

LUXEMBOURG (AP) â¿¿ ArcelorMittal, the world's largest steelmaker, slashed its dividend as it slid into a third-quarter loss on the back of a slowdown in China.

The company reported Wednesday that it made a $709 million loss during the July-September period in contrast to last year's equivalent profit of $659 million and the second-quarter's profit of $959 million. It blamed lower economic growth in China, which is now the world's second-largest economy after years of stellar growth.

Arcelor also said it was committed to reducing its debt and increasing its productivity and efficiency. The Luxembourg-based steel and mining giant saw its debt increase by $1.2 billion during the third quarter, to $23.2 billion, because of negative operating cash flow.

In a conference call with reporters, Aditya Mittal, the company's chief financial officer, said the goal is to get net debt down to $22 billion by the fourth quarter of this year.

He said ArcelorMittal had sold $2.7 billion worth of assets since the euro crisis began three years ago, and it planned to sell still more. He declined to be specific about which assets might be on the auction block.

It's already saving $1 billion by cutting its dividend to 20 cents a share from 75 cents, Mittal said.

While acknowledging that risks remain, Mittal was generally optimistic about the global economy despite ongoing problems in the 17-country eurozone.

He also cautioned about the change in leadership in China and the U.S.'s fiscal difficulties. The U.S. faces a so-called fiscal cliff, whereby a combination of tax increases and budget cuts may become necessary if a budget agreement is not clinched soon. That could result in an economic slowdown in the U.S., where ArcelorMittal is a significant player.

Overall, from a global economic standpoint the indications are that "we have reached the bottom," Mittal said.

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
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs