On July 29, Luxembourg-based ArcelorMittal, the world's largest steelmaker by volume and revenue, announced its results for the quarterly and six-month periods ended June 30, 2009.
Accordingly, in the second quarter of 2009 ArcelorMittal reported a net loss - on the basis of the International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) - of $792 million or $0.57 per basic share, compared with a net income of $5.84 billion or $4.20 per basic share last year. In euro terms, the company's net loss was €581 million or €0.42 per basic share, compared to €3.74 billion or €2.69 per basic share last year.
ArcelorMittal recorded the larger-than-expected net loss in the second quarter, its third consecutive quarterly loss, partly due to exceptional charges amounting to $1.2 billion pre-tax, related primarily to write-downs of inventory ($0.9 billion) and provisions for workforce reduction ($0.3 billion), but said it expects to deliver better profits in the third quarter as production increases and raw material costs decrease. The steel giant said that it plans to restart some shuttered output as demand recovers. The company expects its EBITDA to be in the range of $1.4-1.8 billion for the third quarter.
The steel giant's financial highlights on IFRS basis are as follows:
Results (million $, excepting shipments) | Q2 2009 | Q1 2009 | Q2 2008 | H1 2009 | H1 2008 |
Shipments (million mt) | 17.0 | 16.0 | 29.8 | 32.9 | 59.0 |
Sales | 15,176 | 15,122 | 37,840 | 30,298 | 67,649 |
EBITDA | 1,221 | 883 | 8,046 | 2,104 | 13,090 |
Operating Income | -1,184 | -1,483 | 6,621 | -2,667 | 10,235 |
Net income | -792 | -1,063 | 5,839 | -1,855 | 8,210 |
Commenting on the company's results, ArcelorMittal chairman and CEO Lakshmi N. Mittal said, "The first six months of the year have been some of the most challenging the steel industry has ever experienced. Operating in such a difficult environment, I am pleased with the way in which ArcelorMittal has responded to adapt production, cut costs and strengthen our balance sheet."
"In recent weeks we have started to see some initial signs of recovery, as a result of which we are now planning to restart production at some facilities. Provided there are no further unexpected economic deteriorations, we should see continued gradual improvement throughout the second half of the year, with full recovery remaining slow and progressive," Mr Mittal added.