Africa's largest steel producer, ArcelorMittal South Africa, has announced its financial results for the first half of 2012, posting sharply decreased earnings and lower sales compared to the first half of 2011.
In the given period, ArcelorMittal registered a net profit of ZAR 102 million ($12.3 million) compared to a net profit of ZAR 654 million ($78.85 million) in the corresponding half of 2011. EBITDA for the first half of this year of ZAR 1.04 billion represents a drop of ZAR 0.6 billion compared to the corresponding six months of the previous year due to lower sales and higher input costs offset by higher domestic prices, said the company.
Meanwhile, steel shipments were down two percent, with flat product shipments dropping six percent, while long product shipments were up 10 percent, all on year-on-year basis. ArcelorMittal South Africa's local shipments decreased by four percent as a result of poor domestic market conditions, while exports increased by six percent, both compared to the first half of 2011.
During the first half of 2012, ArcelorMittal South Africa's crude steel production was 349,000 mt lower compared to the first half of 2011, amounting to 2.7 million mt. On the other hand, the company's crude steel production was up 15 percent compared to the previous six months following various production interruptions during the second half of last year.