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Cost-cutting helps ArcelorMittal shrink losses in Q3

Cost-cutting helps ArcelorMittal shrink losses in Q3

The Luxembourg-based company posted a net loss of $193 million for the third quarter ended September 30, compared to a loss of $642 million in the same period a year ago.

PHOTO: Reuters PHOTO: Reuters
ArcelorMittal SA, the world's largest steelmaker, has said its third quarter loss shrank as the company cut costs and the steel market is poised for recovery.

The Luxembourg-based company on Thursday posted a net loss of $193 million, compared to a loss of $642 million in the same period a year ago. Revenues fell 0.5 per cent to $19.6 billion, due to lower average selling prices. Volumes increased 1 per cent to 21.1 million metric tons.

CEO Lakshmi Mittal said he believes "the bottom of the cycle is behind us" and he sees signs of a further recovery in 2014.

Operating income - earnings before interest and taxes - recovered to $477 million from $55 million, with interest costs from the company's $17-billion debt burden the main reason for the net loss.