ArcelorMittal Reports Dramatic Loss in 2015

The world’s largest steelmaker reported a net loss of $7.95 billion for 2015, more than quadruple the previous year’s net loss.

ArcelorMittal said in February it would ask shareholders for fresh funds, sell assets and slash costs after falling commodity prices pummeled its 2015 performance.

The company also plans to sell its stake in Spanish automotive company Gestamp, netting about $1 billion.

Over half of the 2015 loss was due to the company updating on its books the value of its mining operations to reflect the currently lower value of its iron ore.

Chief executive Lakshmi Mittal acknowledged in a statement that “2015 was a very difficult year for the steel and mining industries… Prices deteriorated significantly during the year as a result of excess capacity in China.”

He said the mining business is “focused on adapting to this low-price environment and has reduced cash costs by 20% compared with an initial target of 15%.”

Source: Agence France-Presse  S