The world's largest steelmaker Luxembourg-based ArcelorMittal has announced its financial results for the first quarter of 2012, posting a sharp decline in net profit on year-on-year basis.
In the first quarter, ArcelorMittal registered a net profit of $11 million compared to a net profit of $1.06 billion in the same quarter of 2011. The company's sales increased to $22.7 billion, up 2.3 percent year on year. ArcelorMittal's EBITDA decreased to $1.9 billion in the first quarter this year, compared to $2.5 billion in the same period of 2011.
ArcelorMittal's crude steel production increased slightly to 22.8 million mt in the given quarter, down from 23.5 million mt in the same quarter of the previous year, while its iron ore production decreased by 6.3 percent year on year.
According to the company statement, for the second quarter of 2012 ArcelorMittal expects overall steel shipment volumes to be at a similar level as in the first quarter of 2012, while all the steel segments are expected to show improved profitability. The company also expects a reduction in net debt through improved operating cash flows and further non-core asset divestments. In March, the company had raised TRY 478.2 million from the sale of a stake in Turkey-based integrated steelmaker Erdemir.