ArcelorMittal reports $0.8 billion Q2 loss

ArcelorMittal, the world's largest steel company, today reported a net loss of $0.8 billion for the second quarter (April-June 2009), due mainly to exceptional charges on heavy inventory write-downs and workforce reduction programmes.

Earnings before interest, taxes, depreciation and amortisation (EBDTA) stood at $1.2 billion, up 38 per cent from the year-ago quarter.

The Luxembourg-based European steel giant said its steel shipments plunged 61 per cent in Q2 2009 compared to 29 million tonnes in same quarter of the previous year. Shipments, at 17 million tonnes, were, however, up 6 per cent compared to the first quarter 2009 figure of 15.2 million tonnes.

"The loss in the second quarter of 2009 resulted from exceptional charges amounting to $1.2 billion primarily related to write-downs of inventory ($0.9 billion) and provisions for workforce reductions ($0.3 billion)," Lakshmi N Mittal, chairman of the company, said in a statement.

The company had reported a profit of $5.8 billion in the same quarter of the previous fiscal.

Sales for the first half more than halved at $30,298 against 67,649 in the first half of 2008. EBDTA plunged to $2,104 in H1 2009 from $13,090 in H1 2008. The company registered an operating loss of $2,667 in H1 2009 against an income of $10,235 in H1 2008. Net loss stood $1.86 billion against a net income of $8.2 billion in the first half of 2008.