ArcelorMittal today announced results for its Flat Carbon Europe segment for Q2 2013.

The segment recorded an operating loss of €151 million for Q2 2013 which excludes interest and tax costs. This includes restructuring costs totalling €119 million mainly associated to the asset optimisation of the liquid phase in Florange, France. This is compared to an operating loss of €43 million in Q1 2013 that had included €72 million income from DDH (Dynamic Delta Hedge).

Operating loss for H1 2013 (€194 million) decreased by 49% compared to H1 2012 (€340 million).

  • Compared to Q1 2013, the segment’s crude steel production increased 2.8% to 7.5 Mt in Q2 2013 benefiting from the full quarter operations of the blast furnaces at Asturias and Dunkerque, restarted after regular maintenance.
  • Steel shipments in Q2 2013 were 7.1 million tonnes, an increase of 2.6% as compared to 6.9 million tonnes in Q1 2013 due a seasonal recovery.
  • Sales in the Flat Carbon Europe segment increased to €5.3 billion in Q2 2013 as compared to €5.2 billion in 1Q 2013, primarily due to higher steel shipment volumes.
  • Capital expenditure in the segment for Q22013 was €80 million.

After six consecutive quarters of contraction, Eurozone GDP is likely to have stabilised in Q2 2013. Consequently, underlying steel demand in Europe is approaching stabilisation.

The rate of decline in the construction market is beginning to slow down and the July PMI for the Eurozone is expected to be back above 50 for the first time in two years.

Automotive sales hit a low in June, declining by 5.5% year-on-year as all major markets declined except the UK. However, there are signs that sales are bottoming out, and we expect an end to year-on-year declines soon.

Mild growth is expected in H2 2013, driven by a pick-up in trade and stabilising consumption. However, despite support from a smaller decline of inventories, Eurozone steel demand is still expected to decline by 1.5%-2.5% in 2013.

Robrecht Himpe, CEO of Flat Carbon Europe and member of the ArcelorMittal Management Committee, said “We are seeing a noticeable improvement in the results of Flat Carbon Europe operations despite the continued drop in European steel demand. This can largely be attributed to the proactive steps we took to optimise our asset base in Europe in order to improve efficiency and competitiveness. Despite steel demand in Europe beginning to stabilise, some key markets such as automotive and construction, remain difficult. I believe that our adapted operating asset base in Europe will enable us to continue to focus on providing to our customers value and quality products, which are vital in order to continue our recovery in Europe.”

About ArcelorMittal

ArcelorMittal is the world's leading steel and mining company, with a presence in 60 countries and primary steelmaking facilities in 18 countries. In 2019, ArcelorMittal had revenues of $70.6 billion and crude steel production of 89.8 million metric tonnes, while iron ore production reached 57.1 million metric tonnes. Our goal is to help build a better world with smarter steels. Steels made using innovative processes which use less energy, emit significantly less carbon and reduce costs. Steels that are cleaner, stronger and reusable. Steels for electric vehicles and renewable energy infrastructure that will support societies as they transform through this century. With steel at our core, our inventive people and an entrepreneurial culture at heart, we will support the world in making that change. This is what we believe it takes to be the steel company of the future. ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MT), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS). For more information about ArcelorMittal please visit: http://corporate.arcelormittal.com/

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