Africa's largest steel producer, ArcelorMittal South Africa, has announced its financial results for the first quarter of 2012, posting increased steel sales and marginally lower production costs.
In the given quarter, ArcelorMittal registered a net profit of ZAR 283 million ($34.9 million) compared to a profit of ZAR 195 million in the corresponding quarter of 2011. Its EBITDA increased by 26 percent year on year to ZAR 817 million ($100.8 million). Sales revenues were ZAR 9.1 billion ($1.12 billion), up 18 percent year on year despite fairly stable steel shipments.
For the second quarter of 2012, ArcelorMittal South Africa expects earnings to be substantially lower than the previous quarter due to lower domestic demand, lower steel prices, higher costs such as electricity and transport, and lower sales of commercial coke due to the usual shutdown by the ferrochrome industry during the winter months.