Arcelormittal lost $ 4.3 billion due to crisis in the eurozone

The debt crisis in the European Union forced the largest manufacturer of steel and metal distribution in the world - ArcelorMittal to decide to reduce the value of its European assets by $ 4.3 billion. This statement was the result of a annual test for the depreciation of Goodwill, as required by IFRS accounting standards.

Immediately after the report of possible financial losses, the shares of the steel giant ArcelorMittal fell 3.3% to the mark of 16.95 on daytime tenders on Friday December 21, 2012.

Arcelormittal states that the economy and the market environment in Europe are in an extremely unfavorable position for the development of metallurgy. The demand for steel in the European Union fell by 8% this year, reaching a fall of 29% from the 2007 pre -crisis. This radically distinguishes the EU market from the United States, where the drop in demand for metal rolling since 2007 has amounted to no more than 10%.

Representatives of Arcelormittal do not see any prospects for improving the situation in the countries of the eurozone and say that the weakening of demand will continue in the near and medium term.

The ARCELORMITTAL press release notes that the write-off of Goodwill will not affect key indicators such as net debt and EBITDA, as well as on compliance by the company of carpets.

Recall that in the 3rd quarter of 2012, Arcelormittal received a net loss of $ 709 million compared with a net profit of $ 659 million. For the same period last year and compared to $ 959 million, net profit in the 2nd quarter of 2012 of this year.

In January-September 2012, the company reduced net profit compared to the same period last year by 93.4% (12.5 times), to $ 261 million.