ArcelorMittal makes USD 8 billion loss - Steelworks hit by decrease in raw materials prices

The multinational ArcelorMittal reported a net loss of nearly USD 8 billion (EUR 7.1 billion) in 2015 owing to a decrease in the prices of raw materials, but the world's largest steel maker says they're making progress in cost reduction, Agence France-Presse (AFP) reported.
More than a half of the loss is a result of the write-off of mining possessions, which is a reflection of current low value of iron ore, but even without one-off items, ArcelorMittal made a loss of USD 300 million. In 2014, the company registered a net loss of USD 1.86 billion.

General Manager Lakshmi Mittal admitted in a statement that, "2015 was a very difficult year for steel plants and the mining industry... prices worsened significantly as a result of surplus capacity in China".

The company's revenues dropped 20% last year, to USD 63.6 billion, mainly because of a huge and sudden decrease in raw materials prices, given that the Group just slightly reduced iron ore production and steel supplies.

Earnings before interest, taxes, depreciation and amortization (EBITDA) fell 28% last year, to USD 5.2 billion, the AFP announced.

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