RESULTS EXPECTATIONS
ArcelorMittal SA is set for a once-off interim profit
Africa’s largest steelmaker, ArcelorMittal SA, looks to be on track for its first interim profit in five years, bolstered by an upward valuation of its Macsteel asset, which is for sale. However, this financial boost, news of which sent the share price soaring as much as 28.5%, is a once-off, with the group remaining under pressure. The headwinds facing the steelmaker, which include cheap imports from China and limited infrastructure spend by government, have only intensified, said BP Bernstein analyst Makwe Masilela. ArcelorMittal SA’s share price closed 18.47% higher at R2.95 on Thursday. It has lost 99% of its value since its share price peaked in 2008 at R265.
The company’s return to profitability, however, is only on a headline basis, with the group expecting a headline profit per share of between 1c and 9c, compared with a headline loss of 203c in the previous year. The company was still expecting an overall loss per share of 142c to 152c. ArcelorMittal SA had said in Ma...
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