News of ArcelorMittal South Africa's dire interim earnings provides a window into a bloodbath in South Africa's industrial sector, brought on by low growth and severe load shedding.
The company – South Africa's only primary steelmaker – warned its headline earnings per share for the first half of the year could fall as much as 117% in its half-year to end June, implying a loss of as much as about R515 million for a company now valued at about R2.2 billion on the JSE. In a trading statement, AMSA admitted it had underestimated the economic effects of unprecedented load shedding on its customers. It also warned the release of working capital was more difficult than expected, resulting in its net borrowings position remaining at elevated levels.Get 14 days free to read all our investigative and in-depth journalism. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed.