Wednesday July 29, 08:26 AM
ArcelorMittal sees 'gradual upturn' after Q2 loss
PARIS (AFP) - The world's biggest steel maker ArcelorMittal (Amsterdam: NSCNL0001MT7.AS - news) on Wednesday reported a second quarter net loss of 792 million dollars (581 million euros) but said it expects a "gradual upturn" in the market over the balance of the year.
The net loss was more than double analyst forecasts of 375 million dollars and compared with a year-earlier profit of 5.84 billion dollars.
The three months to June outcome was also a third consecutive quarter in the red for the steel giant which lost 1.1 billion euros in the three months to March and 2.6 billion dollars in the three months to December.
Second quarter sales tumbled by more than half from a year earlier to 15.18 billion dollars, reflecting the collapse in demand in its two key markets -- the auto and construction industries.
On an operating level, ArcelorMittal reported a profit of 1.22 billion dollars and said it expected this to rise to between 1.4 and 1.8 billion dollars in the third quarter to September.
"In recent weeks, we have begun to see the first signs of a pick up," chief executive Lakshmi Mittal said in a statement.
With plant operating at about half capacity since the end of 2008, some production had been restarted.
Unless there is a fresh deterioration in the economy, "we ought to see a gradual improvement in the second half (of the year) but a complete recovery will be slow," Mittal said.
At end-June, the group's net debt stood at 22.9 billion dollars.
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