ArcelorMittal SA, the world's largest steelmaker, plunged into quarterly loss and slashed its stock dividend on Wednesday, blaming a slump in Chinese demand and operating losses in Europe.
ArcelorMittal SA (IW 1000/35), the world's largest steelmaker, plunged into quarterly loss and slashed its stock dividend on Wednesday, blaming a slump in Chinese demand and operating losses in Europe.
Luxembourg-based ArcelorMittal reported a third-quarter net loss of $709 million and said that cutting debt is a priority.
In the third quarter of last year, the group reported a net profit of $659 million.
Chronically weak demand and difficult trading conditions forced the group to revise downward its profit outlook for the second half of this year.
ArcelorMittal also reported an operating loss of $643 million on the production of flat carbon steels in Europe in the first nine months of the year.
The group, caught in controversy stemming from its decision to close two furnaces in northern France, said sales in the third quarter fell by 19% to $19.7 billion.
The furnaces, which have been damped down for 14 months, are being closed because they are uncompetitive in a tough trading climate, partly because they are located too far from ports for transportation, ArcelorMittal has said.
French officials are looking for a buyer, and have received several expressions of interest, including one from the Russian group Severstal, according to the French financial daily Les Echos.
