HomeIndustrial MineralsArcelorMittal swings into profit

ArcelorMittal swings into profit

ArcelorMittal SA “’
making steel …
and profits
Johannesburg, South Africa — MININGREVIEW.COM — 26 October 2010 – ArcelorMittal South Africa “’ the South African unit of the largest global steelmaker “’ has swung into a third-quarter profit, but the company is forecasting lower earnings in the last quarter of 2010.

The company added that its liquid steel output had risen by 11% to 910 000t, but was 8% lower than the previous quarter.

In a results statement issued here, ArcelorMittal SA said sales volumes had decreased by 21% to 374 000t, compared with the same period last year. Headline earnings per share had totalled 17 cents for the three months to end-September, compared with a loss of 16 cents a year earlier.

“Sales prices in rand terms were on average 28% higher than the prices achieved a year ago and up 6% on the previous quarter,” the ArcelorMittal unit said.

The company went on to say that it expected earnings in the fourth quarter of 2010 to be hit by lower international steel prices and the seasonal slowdown in domestic sales. It would also be affected by a stronger rand against the US dollar.

It added that a sharp rise in raw material costs and a decline in infrastructure developments in the country had also affected its earnings.