Afternoon:
14°c
ArcelorMittal, the world's biggest steel firm, today posted a loss of $792 million (£482 million), its third quarterly loss in a row, after sales in the three months to June tanked to less than half those from the same period last year.
The firm - which is headed by Lakshmi Mittal, Britain's richest man, who has donated millions to the Labour Party - reported a second-quarter loss of €581 million (£502 million), compared to a profit of €3.7 billion last year.
Sales slumped to €11.1 billion from €24.2 billion the previous year, hit by the slump in the construction industry.
But chief executive Mittal, who saw his personal fortune drop this year from £27 billion to £11 billion, maintained the global steel industry is now improving. He said his Luxembourg-based firm would soon be restarting production at some closed-down plants.
“In recent weeks we have started to see some initial signs of recovery, as a result of which we are planning to restart production at some facilities,” he said.
ArcelorMittal's latest loss was compounded by write-downs in the value of its steel stockpiles, as well as the expense of paying off staff it has made redundant.
Reader views (4)
No one is immune to the downturn - however the huge reduction in car production and construction - globally will have a deep and long effect on demand for steel. Just look at slowing construction globally and falling car demand.
He may be hit, but he's not starving and has a property portfolio in the UK worth alomost £900 million, and on one property, in Kensington Palace gardens, he quadrupled his investment in less than a year.
Oh - and I forgot to mention - they are all paid for and no mortgages on any of them.
- Mortgage Broker N3, London, England
The amount he has spent on his daughter's wedding/extensions, was merely pocket change. And after all his losses, he's still worth 'only' £11 billion.
- Kokopelli, Nottingham
Wait for the Chinese to pounce on the shares, to get some value for their dollars before Obama inflates them to worthlessness. The slump will end with China owning many of the giants of the global capitalist economy.
- Mdj E10, london uk
I wonder if he's regretiing spending tens of millions of pounds on his daughter's wedding, and the ridiculous extensions to the houses he owns? Such obscene plundering of the world's dwindling resources has exacted an unhappy toll on his wealth, standing and reputation.
- Neil, London, London UK
