ArcelorMittal's S African subsidiary registers 1st profit in nearly decade
Steel giant ArcelorMittal's South African subsidiary AMSA has registered its first profit in nearly a decade, largely due to cost-cutting measures, higher international steel prices and higher sales volumes.
ArcelorMittal SA (AMSA), which was born out of ArcelorMittal Chairman and CEO Lakshmi N Mittal's buyout of state steel manufacturer Iscor nearly two decades ago after the steel magnate first rescued it from total collapse, last made a profit eight years ago.
In the past, AMSA faced several years of crises during which it even faced possible closure without government intervention on tariffs.
Results showed that AMSA made a net profit of 1.3 billion rand (over USD 90 million) from a loss of 5 billion rand a year earlier, largely due to to cost-cutting measures, higher international steel prices and higher sales volumes.
Embattled by falling global demand for steel, low infrastructure development in South Africa and cheaper Chinese imports, AMSA saw its share price take a 98 per ...