ArcelorMittal South Africa posts 123 million rand H1 loss

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ArcelorMittal South Africa posts 123 million rand H1 loss

The steel and mining company posted a 123 million rand loss for the six months that ended June 30 this year, compared to headline earnings of R106 million for the same period in 2012.

Second quarter headline earnings were however strong, having risen to 147 million rand as opposed to the 270 million rand loss posted in the first quarter.

“We have reason to be pleased with the second quarter’s strong rebound in earnings, which was underpinned by a return to normal production at Vanderbijlpark, coupled with stable operations at all the other mills,” ArcelorMittal South Africa CEO Nonkululeko Nyembezi-Heita said in a press statement.

The company released their results on Thursday, recording a revenue decrease by 11 per cent to 15.9 million rand over the half-year due to a decline in steel shipments by 16 per cent. Revenue figures for the same period last year was posted at 17.7 million rand.

Steel production for the six months was 246 000 tonnes lower at 2.5 million tonnes and  steel sales for the period totalled 2.1 million tonnes compared to 2.5 million tonnes in the same period last year.

 “It is also most gratifying that the positive trend in safety performance continued with a first half lost time injury frequency rate of 0.66 and reaching an all-time record of 23 months without a fatality,” Nyembezi-Heita added.

Last year, the company also completed the first half of the year with zero fatalities.

ArcelorMittal South Africa is the largest steel producer in Africa and currently produces five million tonnes of liquid steel per year.  The company has an industrial presence in 27 countries across Asia, Europe, the Americas and Africa. ArcelorMittal South Africa is a part of the ArcelorMittal Group, the world’s largest steel producer.