ArcelorMittal shares fell by 13% on Tuesday after the steelmaker said its annual profit would decline by as much as 65%.
In a trading update, ArcelorMittal South Africa said it expects headline earnings per share (HEPS) – the main profit measure for South African companies – between 2.15 rand ($0.1245) and 2.45 rand ($0.1419) per share for the year ended Dec. 31, down from 6.15 rand per share previously.
The company said the profit fall was mainly due to a decline in steel prices at a time when the prices of raw materials such as coal had risen rapidly.
Poor rail service, a two-week strike over wages, and South Africa’s worst-ever power cuts also impacted the company’s steel production.
ArcelorMittal South Africa said it will release its annual financial results on Feb. 9.
