JOIN USWorld’s largest steel maker ArcelorMittal has posted a 28.25 per cent decline in core profit to US$2.44 billion for the quarter ended June 30, 2012, due to sagging demand in European markets and lower prices.
The company, which posted better results than the market expectations, was also aided by one time gain of US$339 million on account of selling its stake in Skyline Steel in June.
ArcelorMittal had reported an earnings before interest, tax, depreciation and amortisation (EBITDA) of US$3.41 billion in the corresponding quarter of 2011.
During the quarter, the company’s net income declined by over 37 per cent to US$959 million vis-a-vis US$1.53 billion during the corresponding quarter of 2011. Its production decreased by over 6.5 per cent to 22.8 million tonne (MT). ArcelorMittal reported a decline of 2.5 per cent in its steel shipments to 21.7 million tonnes (MT) in the quarter.
The company announced sale of its 48.1 per cent stake in Paul Wurth Group to SMS GmbH as part of its strategy to divest non-core assets.