ArcelorMittal SA releases bleak trading statement for Q1
Steelmaker ArcelorMittal South Africa says its revenue for the period lowered to R12.0 billion (R17.1 billion) and loss from operations widened to R720 million (loss of R533 million). Loss for the period amounted to R1.2 billion (loss of R932 million). Additionally, headline loss per share increased to 134 cents per share (headline loss of 91 cents per share).
No dividends were declared for the period up to 30 June 2026.
Outlook for the second half of 2026
Safety is the Company’s highest priority as it remains committed to Zero Harm. Process safety management improvements currently being piloted will add substantial value.
Local market conditions are expected to remain challenging during the second half of 2026; however, increased infrastructure investment, anticipated policy support and fair trade measures are expected to provide progressively greater support to the steel value chain, particularly moving into 2027.
Having largely completed the wind-down of the Long steel operation, efforts to address the structural cost disadvantage must be accelerated, especially in a weak demand environment. Progressing initiatives with Eskom and Transnet to reduce cost will assertively be pursued as will other operational energy and logistics improvements by partnering with specialist service providers. The implementation of footprint optimisation will continue as will AI-enabled productivity and automation initiatives.
Pursuing alternative income sources, for the substantial non-core asset base and major operations under care and maintenance, through joint development arrangements, to reduce the care and maintenance cost impact for especially Newcastle and Saldanha, will be part of a broader action to improve non-steel EBITDA. Importantly, the progressive restart of smelting activity within the ferrochrome industry, will aid this ambition enabling commercial market coke sales to recover.
Current Rand strength against the Dollar continues to represent a material risk to the second half outlook.
