ArcelorMittal braces for losses as it finalises interim results

ArcelorMittal South Africa [JSE:ACL] is in the process of finalising its financial results for the six months ended June 30, 2019, the steelmaker said in a notice to shareholders on Monday.

On July 10, 2019 the company said in a trading statement that it expected headline earnings for the period to decrease by at least R650m to a headline loss, resulting in a decrease in headline earnings per share by at least 59 cents.

Headline earnings for 2018 were R54m.

At the same time, the company expects the loss for the period to improve by at least R700m (44%), resulting in an improvement of loss per share by at least 64 cents.

In Monday's statement the company advised shareholders that headline earnings per share were expected to decrease from 5 cents per share to a headline loss per share within a range of 53 and 63 cents per share, when compared to the prior corresponding period.

The loss per share is expected to improve from 147 cents per share to a loss within a range of 54 and 64 cents per share (63% and 56% change) when compared to the prior corresponding period.

The company said it continues to face challenges as a result of the difficult trading environment in South Africa. A decrease in international steel prices coupled with the increase in the cost of electricity, rail transport and raw material have further contributed to these challenges.

ArcelorMittal South Africa's interim results for the six months ending June 30, 2019 will be released on August 1, 2019.

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