ArcelorMittal records loss of $709 million

ArcelorMittal records loss of $709 millionWorld's largest steelmaker, ArcelorMittal has reported a loss of $709 million during the third quarter of the previous year compared to a profit of $659 million during the same quarter of the previous year.

The Luxembourg-based company’s Earnings before interest, taxes, depreciation and amortization fell to $1.34 billion during the quarter compared to $2.41 billion during the same quarter of the previous year. The earnings are mostly in line with the market expectations for the quarter. The company expects the Ebitda for the whole year to be about $7 billion.

Lakshmi Mittal, chief executive officer of the company said in a statement that, “The already fragile global economy was further impacted in the third quarter of 2012 by the slowdown in China. This resulted in very challenging operating conditions for ArcelorMittal, which are expected to continue in the fourth quarter.”

Experts say that the global steel industry is facing difficulties due to the continuing economic crisis in the Europe region and slower Chinese growth that led to lower demand and lower commodity prices in the international markets.

ArcelorMittal is seeking to reduce debt as it faced a debt ratings downgrade by Standard & Poor’s to junk on Aug. 2. Moody’s Investors Service has said that it might also downgrade the company if it is not able to reduce its debt to $5 billion this year.