ArcelorMittal, the world’s leading steel company, today announced
results for its Flat Carbon Europe segment for the six month period
ended June 30, 2012.
The segment recorded an operating loss of €340 million which includes
restructuring costs but excludes interest and tax costs. This follows a
loss of €499 million in the second half of 2011 reflecting the continued
difficult operating environment in Europe.
Compared to the same period of 2011, the segment’s crude steel
production fell 8% from 15,501 Mt to 14,325 Mt as output was adjusted to
weak demand levels.
Steel shipments for Q2 2012 fell to 6,771 Mt, a decrease of 9.2% as
compared to 7,461 Mt for 1Q 2012. This was due to lower demand in
Europe, following the end of restocking, as well as lower exports.
Sales were €5,634 million for 2Q 2012, a decrease of 4.3% as compared to
€5,887 million for 1Q 2012. Sales decreased primarily due to lower steel
shipment volumes offset in part by higher average steel selling prices
Capital expenditure in the segment in the first half of 2012 was €375
million, slightly higher than the €356 million spent in the same period
of the previous year.
Steel demand in the developed world has been impacted globally as a
result of the severe problems experienced in the economy since the onset
of the financial crisis at the end of 2008. Developed world demand
remains far below its peak, at only 410 million tonnes in 2011 compared
with 492 million tonnes in 2007. The situation is most severe in Europe,
which has been further exacerbated by the as yet unresolved euro crisis
and the recovery is limited by weak consumer demand, government
expenditure cuts and slow rebound in investment growth.
Against this very challenging backdrop, ArcelorMittal is taking measures
to optimise production at its most competitive sites, improve
competitiveness and invest in its quality assets and research and
development to ensure it remains the market leader in automotive steel.
Robrecht Himpe, Head of Flat Carbon Europe and member of the
ArcelorMittal management committee, said: "The current economic
situation in Europe is impacting a wide range of industries. If our
customers are facing lower demand for their products then this impacts
their demand for steel. The challenges imposed on the automotive
industry for example have been well documented recently. However I am
confident that the actions we are taking to optimize production at our
most competitive facilities will support our leading market position and
ensure a sustainable future for the business. We maintain our unwavering
commitment to supply our customers with the highest quality steel and
best customer service."
ArcelorMittal is the world's leading steel and mining company, with a
presence in more than 60 countries.
ArcelorMittal is the leader in all major global carbon steel markets,
including automotive, construction, household appliances and packaging,
with leading R&D and technology. The Group also has a world class mining
business with a global portfolio of over 20 mines in operation and
development, and is the world’s 4th largest iron ore producer. With
operations in over 22 countries spanning four continents, the Company
covers all of the key industrial markets, from emerging to mature, and
has outstanding distribution networks.
Through its core values of sustainability, quality and leadership,
ArcelorMittal commits to operating in a responsible way with respect to
the health, safety and well-being of its employees, contractors and the
communities in which it operates. It is also committed to the
sustainable management of the environment. It takes a leading role in
the industry's efforts to develop breakthrough steelmaking technologies
and is actively researching and developing steel-based technologies and
solutions that contribute to combat climate change. ArcelorMittal is a
member of the FTSE4Good Index and the Dow Jones Sustainability World
In 2011, ArcelorMittal had revenues of $94.0 billion and crude steel
production of 91.9 million tonnes, representing approximately 6 per cent
of world steel output. The Group's mining operations produced 54 million
tonnes of iron ore and 8 million tonnes of metallurgical coal.
ArcelorMittal is listed on the stock exchanges of New York (MT),
Amsterdam (MT), Paris (MT), Luxembourg (MT) and on the Spanish stock
exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS).
For more information about ArcelorMittal visit: www.arcelormittal.com