Press Esc to close
Friday 01 August 2014
News updated at 3:17 PM IST
Weather
Max: 28.4°C
Min : 20.2°C
In Bangalore
Cloudy sky

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
An man holds a cycle and wades through a flooded street as it rains in Mumbai. Heavy rainfall...

An man holds a cycle and wades through a flooded street as it rains in Mumbai. Heavy rainfall...

A traditional Teej procession at Tripolia Gate in Jaipur on Thursday...

A traditional Teej procession at Tripolia Gate in Jaipur on Thursday...

Gold medal winner Vikas Shive Gowda of India throws the discus in the final at Hampden Park...

Gold medal winner Vikas Shive Gowda of India throws the discus in the final at Hampden Park...

South Africa's Rhett Halkett, right, vies for the ball with India's Chandanda Nikkin, during...

South Africa's Rhett Halkett, right, vies for the ball with India's Chandanda Nikkin, during...

Arvind Panwar makes his way towards the finish line in the Men's Time Trial during...

Arvind Panwar makes his way towards the finish line in the Men's Time Trial during...

Dipa Karmakar of India performs during the women's gymnastics vault apparatus final at the 2014...

Dipa Karmakar of India performs during the women's gymnastics vault apparatus final at the 2014...

Babita Kumari wrestles with Canada's Brittanee Laverdure during the women's Freestyle...

Babita Kumari wrestles with Canada's Brittanee Laverdure during the women's Freestyle...

People at waterlogged Shivaji Chowk, Bhiwandi after heavy rains near Mumbai on Thursday...

People at waterlogged Shivaji Chowk, Bhiwandi after heavy rains near Mumbai on Thursday...

NDRF personnel with a body of a victim of landslide at Malin village on Thursday...

NDRF personnel with a body of a victim of landslide at Malin village on Thursday...

A crack seen on the highway caused by the erosion due to heavy rains at Kasara Ghat...

A crack seen on the highway caused by the erosion due to heavy rains at Kasara Ghat...

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