ArcelorMittal, the largest steel company in the world, reported a net loss of $ 7.9 billion dollars by the end of 2015, write down the value of assets at 4.8 billion dollars as a result of a sharp fall in iron ore prices.
This is stated in the press release of the company.
Net loss excluding one-off factors in the previous year amounted to 0.3 billion compared to the adjusted net profit of 0.4 billion dollars in 2014.
«2015 was very difficult for the steel producers and the mining industry. Despite the continued strong demand for the company’s key markets, prices declined sharply in the past year as a result of excessive production in China,» said CEO of ArcelorMittal Lakshmi Mittal.
«During the year we focused on implementing a series of measures to reduce costs and the business to adapt to hard market conditions,» said Mittal.
The company reduced the shipment of steel in 2015 by 0.6% to 84,6 million tons, and also reduced the supply of iron ore by 2%, to 62.4 million tons.
The report also notes that the company intends to place shares for $ 3 billion before the end of the first half of 2016.
On Friday, ArcelorMittal also reported that drew $ 875 million from the sale of 35% stake in the company Gestamp its majority shareholder — the family Riberas. Proceeds from the sale of a stake in Gestamp, ArcelorMittal will be obtained within six months.
Earlier, seven States of the European Union appealed to the leadership of the EU, urging to take action against the dumping prices for steel products from China and Russia.
As UKRINFORM reported by the Financial Times, in the editorial which appeared the full text of the letter, increasingly cut jobs in this sector in the European Union and the closure of businesses means that European steel sector is on the verge of collapse.
Seven countries, including France, Britain, Poland, Luxembourg and Germany, urging Brussels to take action against unscrupulous traders and to ensure a higher minimum price for steel on the market.
This week, Indian steel giant Tata Steel also reported the loss of its European production: according to the Corporation, only in the last quarter of last year, its European branch lost $ 314 million.
We will note, earlier the company management has promised in the coming years to investing in Ukraine us $ 1.2 billion.
The loss of ArcelorMittal for the year 2015 amounted to nearly 8 billion – China’s been dumping 08.02.2016