The segment recorded an operating loss of €2,212 million for the fourth quarter of 2012 which includes impairments and restructuring costs but excludes interest and tax costs. The total operating loss for the full year was €2,855 million. Operating results in 4Q 2012 included a $2.5 billion write down of goodwill due to the weaker macro economic and market environment in Europe.
ArcelorMittal today announced results for its Flat Carbon Europe segment for the fourth quarter and full year of 2012.
- Compared to 3Q 2012, the segment’s crude steel production fell 5.1% to 6.4 Mt in 4Q 2012 as inventory levels were reduced and output was aligned with local market demand levels. For the year as a whole production dropped by 7% to 27.4 Mt
- Steel shipments for 4Q 2012 increased to 6 Mt, a small increase of 2.1% as compared to 5.8 Mt for 3Q 2012 due to a mild pick up following the seasonally weaker summer period. However, a decrease of 4% was recorded for the year as a whole to 26 Mt when compared to 27.1Mt in 2011
- Sales were €4.7 billion for 4Q 2012, a marginal decrease of 2.8% as compared to €4.8 billion for 3Q 2012 due to lower prices; while for the year as a whole there was a decrease of 5.1% to €21.1 billion
- Capital expenditure in the segment for the fourth quarter of 2012 was €116 million and for full year 2012 CAPEX spend reached €637 million
Eurozone GDP has contracted almost every quarter since Q4’2011. Investment and consumption are likely to decline again, as unemployment (a record level of 11.8%) and declining credit weigh on retail sales, down 2.6% y-o-y in December 2012. With Greece still facing important debt issues, Spain and Italy facing extended recessions, the Eurozone is likely to remain in recession, with 2013 GDP down -0.2% y-o-y. Auto demand was very weak during 2012, with sales down 8.4% to levels not seen since mid of the 1990’s. Apparent steel demand in the European Union in 2012 is estimated to have declined almost 9% for the year as a whole and by over 3% in Q4 alone. EU demand is now almost 30% below 2007 levels.
Robrecht Himpe, CEO of Flat Carbon Europe and member of the ArcelorMittal Management Committee, said “Underlying steel demand remains weak in Europe and looks set to remain so in 2013. Our customers are continuing to scale back capital investment in response. During the last quarter we’ve continued to implement measures to respond to this situation, to deliver excellent service to our customers and to become more cost competitive. The essential components of asset optimization have been announced. While some of these measures and projects are not easy for our employees, we will always strive to find a socially acceptable solution for all those possibly affected.”
About ArcelorMittal
ArcelorMittal is one of the world’s leading integrated steel and mining companies with a presence in 60 countries and primary steelmaking operations in 15 countries. It is the largest steel producer in Europe, among the largest in the Americas, and has a growing presence in Asia through its joint venture AM/NS India. ArcelorMittal sells its products to a diverse range of customers including the automotive, engineering, construction and machinery industries, and in 2023 generated revenues of $68.3 billion, produced 58.1 million metric tonnes of crude steel and, 42.0 million tonnes of iron ore. Our purpose is to produce smarter steels for people and planet. 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 the 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. 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).
http://corporate.arcelormittal.com/