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More pain for ArcelorMittal as headline losses expected to widen

ArcelorMittal South Africa (Amsa) is anticipating a significant increase in its headline losses for the first half of the year, projecting a loss per share of between 10 and 20 cents, compared to a loss of 1 cent in the same period last year. This downturn is attributed to a combination of factors including a weak steel market, lower steel prices, and reduced demand. The company has also faced challenges from load shedding, logistical issues, and a decline in steel consumption in South Africa. Despite these setbacks, Amsa has managed to reduce its net debt by R1.5 billion, bringing it down to R1.7 billion, and has initiated a Section 189 process to restructure its operations, potentially affecting 3,500 jobs. The company's long steel operations are particularly under strain, with the board considering various strategic options to address the ongoing viability of these operations.

Read the Full Moneyweb Article at:
[ https://www.moneyweb.co.za/news/companies-and-deals/more-pain-for-arcelormittal-as-headline-losses-expected-to-widen/ ]