MegaBanner-Right

MegaBanner-Left

LeaderBoad-Right

LeaderBoard-Left

Home » Industry News » ArcelorMittal South Africa swings to H1 profit

ArcelorMittal South Africa swings to H1 profit

ArcelorMittal’s South Africa unit swung back to a modest profit in the first half of the financial year, boosted by higher steel prices and upbeat sale volumes, the firm said on Wednesday.

Diluted headline earnings per share (HEPS) for the six months ended 30 June, 2018, is 5 cents per share compared with a loss of 148 cents per share a year ago. This was in line with the company’s expectations for the first half of 2018.

HEPS is the main profit measure in South Africa that strips out certain once-off items.

The company, majority-owned by ArcelorMittal, said profits improved despite a constrained South African economy and a relatively strong average rand/U.S. dollar exchange rate in the first half of the year.

“The turnaround is on the back of a favourable international steel pricing environment together with higher steel sales volumes,” the company said in a statement.

ArcelorMittal’s South African unit said it was investigating further initiatives to address the group’s sustainability including the sale of its 50 percent stake in trading and shipping company MIHBV.

ArcelorMittal’s unit said in May said it would sell its stake in MIHBV for $220 million, which would be used to strengthen its balance sheet, fund working capital and for investments in the operating businesses.

The steelmaker, which has long complained about cheap imports eating into its business, said it had seen steel imports decrease during the period despite 392,000 tonnes of primary carbon steel imports into South Africa in the first half of the year.

South Africa said last year it would impose emergency “safeguard” tariffs on imports of certain flat hot-rolled steel products.

The tariff is to stay in place for three years and fall from 12 percent in the first year to 10 percent in the second year and 8 percent in the third.

 


 

BusinessReport

To enquire about Cape Business News' digital marketing options please contact sales@cbn.co.za

Related articles

E-bike delivery service targets 50 000 new jobs across SA

By Larry Claasen CRAIG Atkinson, a serial entrepreneur, first became aware of e-bikes and their potential for an e-bike delivery service while on a trip...

CT Power forklifts – Solutions for every industry

IN South Africa’s fast-paced and diverse industrial landscape, the right equipment can make all the difference. From logistics hubs to farms , forklifts play...

MUST READ

Why AI is both a risk and a priority defence tool

Cyber security in the age of AI is a key topic for the forthcoming ITWeb Security Summit, to be held in Cape Town and...

RECOMMENDED

Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.

Strictly Necessary Cookies

Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.

If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.