South Africa's ArcelorMittal reports wider H1 loss

by Reuters 12 views0

ArcelorMittal South Africa posts 123 million rand H1 loss

Africa’s largest steelmaker ArcelorMittal South Africa said on Friday its half-year losses widened amid lower international demand and a weak economy in its home market.

Its headline loss per share rose to nearly 25 cents per share for the six months ended 30 June from 2 cents a year earlier, the unit of ArcelorMittal said in a filing on the Johannesburg Securities Exchange.

“Locally, the economy is nearly at a standstill due to electricity supply constraints, infrastructure development

delays and the low spending in the mining sector,” the South African steelmaker said in a statement.

Sales volumes fell by 7 percent to 2.03 million tonnes, dragged down by a 29 percent drop in export sales due to lower prices, while sales in its home market rose by 2 percent.

The company has asked the South African government to protect the domestic steel industry by imposing anti-dumping duties on imports of cheap steel from China. [ID:nL5N0ZS09K]

Headline earnings (or loss) per share is the main profit measure in South Africa that excludes one-off items.