OREANDA-NEWS. November 07, 2012. ArcelorMittal announced results for its Flat Carbon Europe segment for the third quarter of 2012, reported the press-centre of ArcelorMittal.

The segment recorded an operating loss of EUR 303 million which includes restructuring costs but excludes interest and tax costs. The total operating loss now for the first nine months of 2012 is EUR 643 million reflecting the continued difficult operating environment in Europe where further weakening of demand has combined with a seasonal slowdown. 

Compared to 2Q 2012, the segment’s crude steel production fell 5.9% to 6.7 Mt in 3Q 2012

Steel shipments for 3Q 2012 fell to 5.8 Mt, a decrease of 13.8% as compared to 6.8 Mt for 2Q 2012; and a decrease of 8.6% as compared to 6.4 Mt for 3Q 2011 reflecting the decline is not just seasonal 

Sales were EUR 4,9billion for 3Q 2012, a decrease of 12.5% as compared to EUR 5,6 billion for 2Q 2012. Sales decreased primarily due to lower steel shipment volumes and lower average steel selling prices (-1.0%).

Capital expenditure in the segment for the third quarter of 2012 was EUR 145 million and for the first nine months of 2012 CAPEX spend reached EUR 520 million

Europe has seen declining GDP since the 3rd quarter of 2011 due to continuing decline in investment and consumption, as austerity and record unemployment weigh on demand. No sustained pick-up in Europe is expected before 2014 and the eurozone as a whole is likely to at best stagnate in 2013. PMI remains below 50 for a fifteenth month indicating manufacturing contraction. Apparent steel demand in the European Union in the first three quarters of 2012 is estimated to have declined around 9.5% year on year and we expect it to decline by close to 8% for the year as a whole. EU demand is now at least 28% below 2007 levels.