The world's largest steelmaker Luxembourg-based ArcelorMittal has announced its financial results for the second quarter and the first half of 2012, posting a net income of $959 million for the second quarter.
In the second quarter, ArcelorMittal's net income fell significantly compared to a net income of $1.5 billion in the same quarter of 2011. On the other hand, its net income increased in the second quarter compared to the net income of $11 million recorded in the first quarter of the current year. For the first half of 2012, ArcelorMittal's net profit declined by 62.75 percent year on year to $970 million. The company posted a net loss of $341 million in the second half of 2011.
In the second quarter of the current year, ArcelorMittal's sales decreased to $22.5 billion, down 10.5 percent year on year. In the first half of 2012, its sales decreased by 4.5 percent to $45.2 billion compared to the first half of the previous year. The company's steel shipments of 21.7 million mt in the second quarter of 2012 showed a decrease of 2.5 percent both compared to the previous quarter and year on year.
Media reports note that steelmakers are posting lower earnings as the European economic crisis erodes demand for steel and as commodity prices weaken with the slowdown in Chinese growth. As SteelOrbis previously reported, Asia's third-biggest steelmaker South Korea-based POSCO has posted a 66 percent decline year on year in its net profit for the second quarter.
ArcelorMittal's crude steel production decreased by 6.5 percent to 22.8 million mt in the second quarter, compared to the same quarter of 2011, while its iron ore production increased by 9.9 percent year on year to 14.4 million mt. In the half year of 2012, ArcelorMittal's crude steel production decreased by 4.8 percent to 45.6 million mt, while its iron ore production increased by 10.8 percent to 27.6 million mt, both year on year.
According to the company statement, for the second half of 2012 ArcelorMittal expects overall steel shipment volumes to be lower compared to the first half due to normal seasonal factors. ArcelorMittal's iron ore shipments in the fiscal year 2012 are expected to be 10 percent higher compared to the fiscal year 2011.