* H1 diluted headline EPS of 26 cents vs 166 cents
* Expects further reduction in third-quarter earnings
(Adds details)
JOHANNESBURG, July 25 (Reuters) – ArcelorMittal South Africa
, a unit of the world’s top steelmaker,
reported an 84 percent drop in first-half earnings on Wednesday
hit by lower prices and soft demand and said it expects a
further reduction in the third quarter.
Africa’s biggest steelmaker said diluted headline earnings
per share for the six months to end-June totalled 26 cents
compared with 166 cents in the same period last year.
Headline earnings are the main profit gauge in South Africa
and exclude certain one-off and non trading items.
“Third quarter financial results are expected to extend the
headline loss incurred in second quarter on the back of lower
steel prices and a further decline in domestic demand,” the
company said in a statement.
The company, which sells 90 percent of its steel in Africa,
said revenue rose 7 percent to 17.8 billion rand ($2.1 billion).
It did not declared an interim dividend.
ArcelorMittal South Africa also said it was in talks with
Kumba Iron Ore to extend an interim iron ore supply
agreement which expires on July 31.
Continued…
