Press Esc to close
Thursday 30 March 2017
News updated at 11:58 AM IST

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
People  are purchasing Mango leaves and Neem leaves on the eve of Ugadi festival ...

People are purchasing Mango leaves and Neem leaves on the eve of Ugadi festival ...

A group of Marathi women, dressed in traditional attires, with placards displaying...

A group of Marathi women, dressed in traditional attires, with placards displaying...

Yakult's new brand ambassador and Bollywood actor Shilpa Shetty at a promotional event...

Yakult's new brand ambassador and Bollywood actor Shilpa Shetty at a promotional event...

King of fruits mango has arrived for sale at Eidgah Maidan near Channamma Circle in Hubballi...

King of fruits mango has arrived for sale at Eidgah Maidan near Channamma Circle in Hubballi...

Children with flowers, neem leaves and jaggery all set to welcome the New Year...

Children with flowers, neem leaves and jaggery all set to welcome the New Year...

Roads wear deserted look on Tuesday as temperature soars in Surat...

Roads wear deserted look on Tuesday as temperature soars in Surat...

Security forces chasing away local protesters who tried to disrupt an anti-militant operation...

Security forces chasing away local protesters who tried to disrupt an anti-militant operation...

Smoke billowing out of the house which was targeted by the security forces personnel for...

Smoke billowing out of the house which was targeted by the security forces personnel for...

A man carries schoolchildren on his bicycle on a road in Srinagar, India...

A man carries schoolchildren on his bicycle on a road in Srinagar, India...

Russian opposition leader Alexei Navalny, foreground, speaks to press in a court room in Moscow....

Russian opposition leader Alexei Navalny, foreground, speaks to press in a court room in Moscow....

Like us on Facebook

Copyright 2017, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523