Arselormital shares increased by 7.5 percent after announcement of expenses in Europe

According to Reuters, on Friday the shares of the largest metallurgical company in the world Arselormital grew 7.5 percent after the company announced the maintenance of the profit level due to the reduction of expenses.

As we have already reported, the head of Arselormital Lakshmi Mittal said that the fall in the first quarter of this year did not exceed 0.5 - 1.5 percent and a reduction in expenses plus profit growth in the mining sector could increase the company's income in the future.

Reducing expenses implies a stop or closing of metallurgical production throughout Europe and, in particular in France and Belgium. Thus, Mittalo managed to save about one billion dollars.

Ukraine did not stand aside. According to trade unions, the Krivorozhsky Metallurgical Plant Arselormital Krivoy Rog conducts a serious reduction in the number of employees. The local branch of Industrial once again turned to the leadership of Ukraine and the local authorities for help in counteracting the policy of the enterprise administration aimed at reducing jobs on it.

Arselormittal has to sell assets today and issue high -profit bonds to ensure production activities and survive until 2015, in which, according to analysts, the demand for steel will reach a pre -crisis level. Arselormital also reports on the savings of almost five billion dollars by reducing administrative expenses after 2008.

Arselormital, who sold about 45 percent of the total steel in Europe last year, said that in the first quarter of 2013, profit, taxes, wear and depreciation (EBITDA) fell by 26 percent of up to 1 billion 560 million dollars, which was significantly higher than analysts, which the average forecast amounted to 1 billion 360 million dollars.