ArcelorMittal SA’s shares crashed 43% after warning of a potential headline loss of up to R515 million.
- The steelmaker blamed the economic impact of load shedding and a contraction in key steel consuming sectors.
- ArcelorMittal SA expects its headline earnings per share to fall as much as 117% in its current financial year.
- The company’s net borrowings remain elevated despite anticipating a release of working capital.
- ArcelorMittal SA’s CFO resigned after just two weeks in the job.
- The slump wiped around R1.7 billion off the company’s market value.
- Weak consumer confidence, load shedding, high inflation and rising interest rates affected demand for steel.
- Remedial actions are underway to improve ArcelorMittal’s net borrowing position.