ArcelorMittal increased its profit in the third quarter
According to the latest ArcelorMittal has finally ceased to be profitable. It became known that one of the largest steel companies made a profit of $ 680 million dollars. Data refer to the third quarter of this year. It is a huge success for ArcelorMittal. Last year, over the same reporting period, the company received a net loss of 711 million dollars. The company’s profit calculated under international financial reporting standards.
The head of ArcelorMittal, the English billionaire Lakshmi Mittal expressed his delight in regard with the news. According to him, this result shows the results of the efforts of all employees of the company. Net profit in the third quarter due not only to the improvement of the overall situation on the metals market. The British company put a lot of effort to get out of debt trap.
Obnarodovany financial success of the company exceeded the analysts ' predictions. According to their forecasts, the profit was not to exceed $ 650 million.
But sales of the British holding-declined to 20.3 million tons. The increased percentage equates to 3.2 percent. It also influenced the drop in net profit of the company. For the year, ArcelorMittal earned fourteen and a half billion dollars. That is, the income of the company declined by nearly seven percent.
British holding in the third quarter of improved underlying profit. Compared to the same period last year, as second quarter revenue of ArcelorMittal amounted to about two billion dollars.
The head of the company expressed concerns about the decline in profit in the future. Mittal believes that the constant growth of coal and the stability in steel prices poses a threat to profitability.
«Excess capacity also remains a subject for concern. Strengthening the global response to unfair trade becomes increasingly important to minimize its impact on the market» — said the President of the company.
It is worth noting that the South African division of the company has already announced to raise product prices. From the first of December the price will increase by approximately ten percent. The reason for the price increase permanent price increase sharp increase of coal prices. Raising prices is a necessary measure. That would somehow justify the profitability of production.
Not only the British company is now faced with the problems of pricing. All global manufacturers are forced to raise the price of their products. However, now there is a risk of falling demand. So, for steel producers is coming a new wave of crisis.