Press Esc to close
Thursday 24 July 2014
News updated at 11:36 AM IST
Weather
Max: 27.9°C
Min : 21.3°C
In Bangalore
Sunny day
Breaking News

ArcelorMittal to write down European business value by $4.3 bn

Luxembourg/New Delhi, Dec 21, 2012 (PTI)

World's largest steel maker ArcelorMittal today said it will write down the value of its European business by about USD 4.3 billion on account of decreasing demand in Europe due to weaker macro economic and market environment.

"The write down will take the form of a non-cash impairment charge that will be recorded in the fourth quarter of 2012. The impairment is due to a weaker macro economic and market environment in Europe where apparent steel demand has fallen by approximately 8 per cent this year, bringing the cumulative demand decline to 29 per cent since 2007," the company said in a statement.

The development comes on heels of the company closing its blast furnaces in France and Belgium. "This weaker demand environment, and expectations that it will persist over the near and medium term, led to a downward revision of cash flow expectations underlying the valuation of the European businesses to which goodwill has been allocated," the company said.

This is in contrast to the US, where apparent steel consumption is up almost 8 per cent this year and is now approximately 10 per cent lower than it was in 2007, it added. The company said its key metrics such as net debt and operating profits, as well as compliance with debt covenants, are unaffected by this impairment.


Europe's steel industry is struggling with excess production capacity amid economic downturn.

Go to Top

Photo Gallery
A relative of a passenger on board the crashed TransAsia Airways plane cries in Kaohsiung...

A relative of a passenger on board the crashed TransAsia Airways plane cries in Kaohsiung...

Rescue workers survey the wreckage of TransAsia Airways flight GE222 which crashed...

Rescue workers survey the wreckage of TransAsia Airways flight GE222 which crashed...

Priyanka Chopra during the unveiling of trailer of the film ''Mary Kom'', in Mumbai...

Priyanka Chopra during the unveiling of trailer of the film ''Mary Kom'', in Mumbai...

Artists perform during the launch of Philips and Disney imaginative lighting range in New Delhi...

Artists perform during the launch of Philips and Disney imaginative lighting range in New Delhi...

People watch as pyres burn at a cremation ground on the banks of river Ganges in Varanasi...

People watch as pyres burn at a cremation ground on the banks of river Ganges in Varanasi...

Villagers cross the river Baitarani in a country boat after the same was flooded following...

Villagers cross the river Baitarani in a country boat after the same was flooded following...

Philipp von Sahr, President, BMW Group India with the newly launched BMW Active Hybrid 7...

Philipp von Sahr, President, BMW Group India with the newly launched BMW Active Hybrid 7...

Andhra Pradesh Chief Minister N Chandrababu Naidu distributing food grains to poors...

Andhra Pradesh Chief Minister N Chandrababu Naidu distributing food grains to poors...

Sand artist Sudarsan Pattnatik creates a sculpture on girl child abuse with a message...

Sand artist Sudarsan Pattnatik creates a sculpture on girl child abuse with a message...

Lightning on a thunderstorm  crackles over the mountains just south of Tollgate, Ore...

Lightning on a thunderstorm crackles over the mountains just south of Tollgate, Ore...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bangalore - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523