Press Esc to close
Saturday 01 August 2015
News updated at 7:12 PM IST
Weather
Max: 29.9°C
Min : 21°C
In Bengaluru
Generally cloudy
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 farmer plants saplings in a paddy field on the outskirts of in Agartala...

A farmer plants saplings in a paddy field on the outskirts of in Agartala...

Leopard caught in forest department cage at CSIR premises, Manadavadi Road in Mysuru on Friday...

Leopard caught in forest department cage at CSIR premises, Manadavadi Road in Mysuru on Friday...

Actress Chitrangada Singh during the inauguration of a diamond showroom in Bengaluru on Friday...

Actress Chitrangada Singh during the inauguration of a diamond showroom in Bengaluru on Friday...

Artists from Gujarat perform a dance at the Travel and Tourism Fair at Netaji Indoor Stadium...

Artists from Gujarat perform a dance at the Travel and Tourism Fair at Netaji Indoor Stadium...

A woman prays as others take holy dips at Sangam, the confluence of the Rivers Ganges...

A woman prays as others take holy dips at Sangam, the confluence of the Rivers Ganges...

School children pay tribute to former President APJ Abdul Kalam in Gurgaon on Friday...

School children pay tribute to former President APJ Abdul Kalam in Gurgaon on Friday...

Securitymen guard parliament house during the monsoon session in New Delhi on Friday...

Securitymen guard parliament house during the monsoon session in New Delhi on Friday...

Congress Vice President Rahul Gandhi meeting agitating students of FTII...

Congress Vice President Rahul Gandhi meeting agitating students of FTII...

Dukhtaran-e-Millat activists holding placards during their protest against the hanging of Yakub...

Dukhtaran-e-Millat activists holding placards during their protest against the hanging of Yakub...

Policemen in action after a clash between BJP workers and AIIMS coordination committee members...

Policemen in action after a clash between BJP workers and AIIMS coordination committee members...

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