 "ArcelorMittal posts Q3 net loss at $711 mn")
The NRI billionaire Lakshmi Mittal-led firm had clocked a net profit of $22 million in the year-ago period.
"ArcelorMittal recorded a net loss for Q3 2015 of $711 million, or $0.40 loss per share, as compared to a net income of $179 million, or $0.10 earnings per share for Q2 2015, and net income of $22 million, or $0.01 earnings per share for Q3 2014," the company said in a statement.
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The Luxembourg-headquartered company said its sales for July-September quarter were 22.3% lower at $15.6 billion as compared to $20.1 billion for the same period a year ago.
Lower sales were recorded primarily due to lower average steel selling prices, lower shipments, lower iron ore reference prices and offset in part by higher market priced iron ore shipments.
The company said operating conditions have deteriorated in recent months, both in terms of the international steel price environment and order volumes, and as a result the company now expects full year 2015 EBITDA of $5.2-5.4 billion down from a previous guidance of $6-7 billion.
On results, Lakshmi N Mittal, ArcelorMittal Chairman and CEO, said: "Whilst we have delivered stable EBITDA compared with the second quarter, the already challenging operating conditions have further deteriorated during recent months, largely due to additional declines in steel prices caused by exceptionally low Chinese export prices. Our focus is on ensuring we take all the necessary steps to strengthen our competitiveness in this difficult environment.
"Measures we have taken so far are yielding results; costs in our mining division have reduced by 17% so far in 2015 versus an initial target of 15%, and net debt is $1 billion lower than a year ago. Whilst we expect market conditions to remain challenging in 2016, we have a number of important programs underway across the business which will structurally improve EBITDA in 2016 and we also expect a significant reduction in our cash requirements."
He said that whilst the company is confident that its actions are the right ones, there are also important issues for governments to address, specifically relating to unfair trade.
"We are encouraged by various examples of trade action being initiated in response to dumping, but the process needs to be faster in order to be fully effective," he said.
Total steel shipments during the quarter were 2.1% lower as compared to 21.5 million metric tonnes for the similar period in 2014.
The company said depreciation was lower at $777 million in the quarter as compared to $946 million for the year-ago period, primarily on account of foreign exchange impact following the depreciation of major currencies against the US dollar.