Africa's largest steel producer, ArcelorMittal South Africa, has announced its financial results for the third quarter and the first nine months of the current year, reporting a net profit of ZAR 248 million ($23.9 million) in the third quarter, compared to a net loss of ZAR 148 million in the corresponding quarter of 2012.
In the third quarter this year, the company's EBITDA amounted to ZAR 581 million ($56 million), compared to ZAR 238 million in the corresponding quarter of the previous year. ArcelorMittal South Africa's sales revenue in the given quarter increased by 15.5 percent year on year to ZAR 8.8 billion ($848.6 million), as a result of an 11 percent rise in average steel prices. Domestic steel prices increased by 12 percent while export prices rose 13 percent although this affected flat and long steel prices differently, rising by 12 percent and nine percent year on year, respectively.
For the first nine months of 2013, ArcelorMittal South Africa posted a net profit of ZAR 109 million ($10.5 million), compared to net loss of ZAR 508 million in the corresponding period of the previous year. The company's EBITDA increased by 38.9 percent to ZAR 1.55 billion ($149.5 million) in the given period, while the sales revenues declined by 23.5 percent to ZAR 24.7 billion ($2.4 billion), both year on year.
ArcelorMittal South Africa's overall liquid steel production decreased by 24.5 percent year on year to 3.84 million mt during January-September this year. In the same period, the company registered steel shipments of 3.25 million mt, down 29.5 percent compared to the same period of 2012.
For the last quarter of the current year, ArcelorMittal South Africa expects domestic sales to be significantly lower, largely due to the normal seasonal slowdown and the general weakness in the domestic market. Accordingly, earnings are expected to be lower than the preceding quarter.
