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ArcelorMittal pessimistic about the future
ArcelorMittal is pretty miserable about the outlook for steel prices and consumption in the next six months and the company's chief executive, Nonkululeko Nyembezi-Heita told Business Report that the company's earnings were likely to be considerably lower than in the previous quarters.
She says that the construction sector has not made a contribution to South Africa's gross domestic product this year and there are poor prospects for it for the rest of the year. The construction sector is a major consumer of steel and this has resulted in ArcelorMittal's profit dropping by 60% year-on-year.
In addition, Times Live reports that high energy costs were up by 25% to R600-million for the six months to June and this, combined with a sharp rise in raw material costs has weighed heavily on the company's figures.
ArcellorMittal declared an interim dividend of 55 cents a share
Read more:
- Business Report: Gloomy outlook for SA steel giant
- Times Live: Electricity price rises hurt ArcelorMittal
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