ArcelorMittal SA reports interim loss

ArcelorMittal SA swung to a R3.4 billion loss in the first half of 2023.

1. Load shedding, higher input costs, and lower steel prices contributed to the losses.
2. Core earnings (EBITDA) plunged over 80% to R499 million.
3. Operating profit was effectively wiped out, falling 97.1% to R94 million.
4. Revenue fell 5.1% to R21 billion despite a 3% rise in sales volumes.
5. Realised rand steel prices declined 8% and USD prices fell over 20%.
6. No dividend was declared.
7. The CFO resigned after only 16 days in the role.
8. Global steel demand is expected to rise 2.2% while China’s growth will impact prices.
9. Demand for steel in South Africa is expected to improve if inflation eases and interest rates fall.