* FY diluted headline loss/shr 13 cts vs EPS of 343 cts
* Sees significantly better Q1
(Adds details, quotes)
JOHANNESBURG Feb 7 (Reuters) – ArcelorMittal South
Africa Ltd, a unit of the world’s top steelmaker
, on Tuesday reported a full-year headline loss, hit by
higher raw material costs and weaker sales, but said it expects
a better first quarter.
The steelmaker’s production last year was hit by structural
problems, including a furnace failure at its Newcastle plant, a
strike in the steel sector and a shutdown at its Saldanha Works
operation. The Newcastle plant has since resumed full output.
“We had to contend with unrelenting pressure on operating
margins as production costs climbed 19 percent, while steel
prices only rose 12 percent on average,” Chief Executive
Nonkululeko Nyembezi-Heita said in a statement.
Globally, steel producers are expected to report a weak
fourth quarter on destocking and squeezed margins, underlining
the need for consolidation of the industry.
Africa’s largest steelmaker reported a diluted full-year
headline loss per share of 13 cents, compared with diluted
headline EPS of 343 cents the previous year.
Headline EPS are the main profit gauge in South Africa and
strip out certain one-time items.
The company, which sells 90 percent of its steel in Africa,
said sales fell 7 percent to 4.7 million tonnes during the year,
while revenue was up 4 percent to 31.5 billion rand ($4.16
billion).
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