Global Steel Mills Incur another Loss in Q4 2011
Monday, 20 February 2012 | 11:00
Influenced by the sluggish downstream demand, global steel mills in the fourth quarter of 2011 again incur a chilly winter. Most mills with public revenue reports show a deficit for the Q4. But the dropping price on raw materials in the first season is deemed to moderate cost pressure to some extent. Also there are signs showed that prices are ascending, hence the Q1 profit is hopefully to be improved.
ArcelorMittal Q4 loss widens to USD 1 billion
The world's largest steel maker ArcelorMittal's loss widened to USD 1 billion in October-December 2011 due to subdued European demand and an USD 1.3 billion outgo on deferred tax, impairments and restructuring charges.
"The progressive recovery that we have been experiencing was impacted in the second half of the year by the growing uncertainty over the economic situation in Europe, which particularly affected sentiment and performance in the fourth quarter," ArcelorMittal Chairman and CEO Lakshmi Mittal said.
The company, which had reported USD 780 million loss in October-December quarter of 2010, partly attributed the loss during the fourth quarter to USD 1.3 billion non-cash charges, which deferred tax, asset impairments and restructuring.
United States steel posts a loss of USD226 mln
US Steel reported that its fourth quarter net loss to USD226 million, lower than the USD249 of the same period last year. The net loss from European operating department for US Steel is USD89 million, higher than the USD39 million one year earlier.
Nucor swings to profit in Q4
Nucor posted fourth-quarter profit of $137.06 million or $0.43 per share versus loss of $11.36 million or $0.04 per share a year ago.
The 2011 results were impacted by a non-cash gain of $29.0 million or $0.06 per share recognized in the fourth quarter for the correction of an actuarial calculation related to the medical plan covering certain eligible early retirees. This calculation did not have a material impact on any previously reported results.
On average, 17 analysts polled by Thomson Reuters expected the company to report earnings of $0.28 per share. Analysts' estimates typically exclude special items.
Net sales grew to $4.83 billion from $3.85 billion a year ago. Analysts estimated revenues of $4.77 billion.
AK Steel Incurs a Loss of USD193.9 million
AK Steel reported a wider fourth-quarter loss. The Corporation posted a quarterly loss of $193.9 million, versus a year-ago loss of $155.6 million. The company's adjusted loss came in at $0.26 per share. Its sales rose to $1.51 billion from $1.39 billion. However, analysts were expecting a loss of $0.38 per share on revenue of $1.49 billion.
Nippon's Q4 Loss Reaches JPY50 Bln
Japan's largest steelmaker Nippon by output reported a net loss of Y50.0 billion in the October-December quarter, compared with a profit of Y33.4 billion in the same period a year earlier.
Sales rose 3.9% to Y1.042 trillion from Y1.003 trillion in the previous year.
The company said it suffered a onetime loss of Y84.6 billion for the October-December quarter related to its share holdings, including in Sumitomo Metal Industries Ltd.
For the fiscal year ending March, Nippon Steel lowered its net outlook to break-even from Y85 billion in profit previously forecast, and revised downward its operating profit outlook to Y70 billion from Y130 billion. Sales are now pegged at Y4.050 trillion, down from Y4.200 trillion previously foreseen.
Posco sees 12% fall in 2011 consolidated net profit
South Korean steelmaker Posco said its consolidated net profit in 2011 fell 12 percent from a year earlier due to higher raw material costs and a plunge in demand from China.
Posco, the world's third-biggest steelmaker by output, said consolidated net profit, which includes overseas subsidiaries, was 3.7 trillion won ($3.3 billion) compared with 4.19 trillion won a year earlier.
Sales rose 44 percent to 68.9 trillion won, while operating profit declined 0.3 percent to 5.4 trillion won. Results for the parent company alone were released last month and showed a 14 percent fall in net profit for 2011.
This year Posco forecasts higher consolidated sales of between 70.6 trillion and 74.3 trillion won.The company said it cut manufacturing costs by 1.5 trillion won last year by using cheaper materials and recycling by-products.
Source: Steel Home
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