The world's largest steelmaker Luxembourg-based ArcelorMittal has announced its financial results for the third quarter and the first nine months of 2012, posting a net loss for the third quarter.
In the third quarter, ArcelorMittal registered a net loss of $709 million compared to a net profit of $659 million in the same quarter of 2011. The company's sales in the third quarter this year decreased to $19.72 billion, down 18.5 percent year on year. ArcelorMittal's EBITDA decreased to $1.33 billion, compared to $2.4 billion in the same period of 2011.
In January-September of the current year, ArcelorMittal's net profit amounted to $261 million, decreasing from $3.26 billion in the same period of the previous year. The company's sales in the given period decreased to $64.9 billion, down 9.25 percent year on year. ArcelorMittal's EBITDA decreased to $5.75 billion, compared to $8.4 billion in January-September 2011.
ArcelorMittal's crude steel production amounted to 21.9 million mt in the third quarter, down 2.23 percent year on year, while the crude steel output of the company for the first nine months decreased by four percent year on year to 67.4 million mt.
Meanwhile, ArcelorMittal's Flat Carbon Europe segment reported an operating loss of €303 million for the third quarter which includes restructuring costs but excludes interest and tax costs. The operating loss of €643 million for the first nine months of the current year reflects the continued difficult operating environment in Europe where further weakening of demand has combined with a seasonal slowdown.
According to the company statement, the decline in iron ore prices during the third quarter and the weaker global economic backdrop adversely impacted steel prices and steel volumes, affecting ArcelorMittal's previous expectations for profitability in the second half of the year. ArcelorMittal now expects a $7 billion EBITDA for the whole year.