Steel maker
ArcelorMittal was cautiously optimistic about its near-term prospects even after it reported a heavy fourth quarter loss generated by a deteriorating
European economy and big tax and restructuring charges.
The Luxembourg-based company said on Tuesday that it posted a $1 billion net loss in the three months to end-December, compared to a $780 million loss a year earlier, even though sales spiked 8.5 percent at $22.45 billion.
The loss was mostly due to $1.3 billion in charges for deferred taxes, restructuring and impairments, though mounting worries over Europe's economy in the wake of a crippling debt crisis hit demand levels too.
"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," Chief Executive
Lakshmi N. Mittal said in the earnings statement.
However, the company said economic sentiment had improved in the first weeks of the new year, particularly in the U.S., and was optimistic about sales and earnings in the first half.
That helped the company's share price open around 1.7 percent higher at euro16.45.
ArcelorMittal is particularly vulnerable to changes in economic sentiment, since much of the steel it makes is used in expensive items like cars, home appliances or buildings.
Concerns over how the debt crisis in the eurozone would affect the overall economy contributed to steel prices dropping 6.2 percent compared to the third quarter, while shipments fell 2.5 percent as buyers in Europe used up existing stock, the company said.
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