Author: Paul Ploumis
16 Feb 2015 Last updated at 00:57:48 GMT
BRUSSELS (Scrap Monster): The steel shipments by Arcelor Mittal in the European region fell slightly by 2.2% from 9.829 million tonnes in third quarter last year to 9.610 million tonnes during Q4 2014. The company had faced minor production related issued in the region during the quarter. Further, the company had reduced overseas shipment volumes to maintain domestic shipment levels. The flat steel shipment volumes were down 2.9% over the previous quarter, whereas long product steel shipment volumes fell by 1.6% during the quarter.
The company’s Europe region reported crude steel production of 10.7 million tonnes during Q4 2014, marginally lower when compared with the production of 10.837 million tonnes during third quarter of the year. The sales during the quarter dropped considerably by nearly 7% to 9.023 billion during Q4 2014 as compared with the total sales of 9.689 billion during the previous quarter. The sales drop was mainly on account of the steep fall in steel selling prices from $760 per tonne to $721 per tonne.
The operating performance of the region was impacted significantly due to impairment charges of $57 million related to closure of Luxembourg facility. The 50% stake sale in South Korean joint venture and few units of its Steel Cord business in the US, Asia and Europe also led to operatin gloss in Q4 2014. The restructuring charges related with finishing facilities at Liege Belgium too affected the operating performance of the company.
EBITDA during the fourth quarter in 2014 witnessed a jump of 6.6% from $523 million in Q3 2014 to $557 million. When compared with Q4 2013, the EBITDA surged higher by 36.6%, thanks to the severe cost cutting measures implemented by the company along with improved market conditions.