<p>"The loss in the second quarter of 2009 resulted from exceptional charges amounting to USD 1.2 billion primarily related to write-downs of inventory (USD 0.9 billion) and provisions for workforce reductions (USD 0.3 billion)," the NRI billionaire L N Mittal-promoted company said in a statement.<br />The company had a profit of USD 5.8 billion in the same quarter of the last fiscal.<br />ArcelorMittal saw its sales plunging by nearly 60 per cent to USD 15.2 billion in the reporting quarter compared to the period a year ago due to fall in steel demand and prices.<br />"The main reason for the decline continues to be the extreme weakness in demand for steel products in 2009 as a result of the global economic crisis, along with a steep fall in prices," it added. <br /><br />However, the company is hopeful of a demand revival in the second half of the year and is mulling the rollback of 50 per cent production cuts at some of its facilities.<br />"In recent weeks we have started to see some initial signs of recovery, as a result of which we are now planning to re-start production at some facilities. Provided there are no further unexpected economic deteriorations, we should see continued gradual improvement throughout the second half of the year," Mittal said.</p>
<p>"The loss in the second quarter of 2009 resulted from exceptional charges amounting to USD 1.2 billion primarily related to write-downs of inventory (USD 0.9 billion) and provisions for workforce reductions (USD 0.3 billion)," the NRI billionaire L N Mittal-promoted company said in a statement.<br />The company had a profit of USD 5.8 billion in the same quarter of the last fiscal.<br />ArcelorMittal saw its sales plunging by nearly 60 per cent to USD 15.2 billion in the reporting quarter compared to the period a year ago due to fall in steel demand and prices.<br />"The main reason for the decline continues to be the extreme weakness in demand for steel products in 2009 as a result of the global economic crisis, along with a steep fall in prices," it added. <br /><br />However, the company is hopeful of a demand revival in the second half of the year and is mulling the rollback of 50 per cent production cuts at some of its facilities.<br />"In recent weeks we have started to see some initial signs of recovery, as a result of which we are now planning to re-start production at some facilities. Provided there are no further unexpected economic deteriorations, we should see continued gradual improvement throughout the second half of the year," Mittal said.</p>