The world's leading steel producer ArcelorMittal today reported a net loss of $2.63 billion for the fourth quarter ended December 31, 2008, hit by slump in demand and falling prices amid the global economic slowdown.
The company had a net income of $2.43 billion in the last quarter of 2007, ArcelorMittal said in a statement.
Total sales declined by 21.11 per cent at $22.08 billion in the fourth quarter, from $27.99 billion in the corresponding period a year ago.
Explaining the loss incurred in the final quarter, the company said, "net loss of $2.6 billion is due to $3.1 billion exceptional charges post-tax ($4.4 billion pre-tax)".
During the quarter, the company recorded exceptional charges amounting to $4.4 billion pre-tax related to writedowns of inventory and raw material supply contracts, and provisions for workforce reductions and litigation, it added.
For the full year 2008, ArcelorMittal registered a 9 per cent fall in net income at $9.4 billion against $10.36 billion in the previous year.
In its outlook for the first quarter 2009, the steel producer expects its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) to be about $1 billion, due to full impact of price declines and production cuts.
