News24
10 Jul 2019, 17:43 GMT+10
ArcelorMittal South Africa may cut more than 2 000 jobs as part of a widespread restructuring to cut costs. The shares plunged.
South Africa's steel industry is suffering from high costs for electricity and raw materials, and has been hit by the weak local economy, the company said in a statement on Wednesday. It expects to report a loss in the first half and said earnings excluding some items will fall by at least R650 million.
"Due to the difficult domestic economic environment, the South African steel industry continues to face significant challenges," the company said. "More significant measures have become necessary, including the review of staffing levels."
The shares tumbled as much as 17%, the biggest intraday drop in 14 months. The stock was down 10% as of 10:19 in Johannesburg.
The company is majority owned by ArcelorMittal, which ranks as the world's biggest steelmaker and has been struggling with weaker demand and lower steel prices in its key markets.
It announced output cuts in Europe last month as the market came under pressure, with US tariffs deflecting shipments to the EU and higher iron ore prices boosting costs.
Get a daily dose of Milwaukee Sun news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Milwaukee Sun.
More InformationIn the past month alone, 23 Israeli soldiers have been killed in Gaza—three more than the number of remaining living hostages held...
LONDON, U.K.: At least 13 people are believed to have taken their own lives as a result of the U.K.'s Post Office scandal, in which...
WASHINGTON, D.C.: Travelers at U.S. airports will no longer need to remove their shoes during security screenings, Department of Homeland...
WASHINGTON, D.C.: An elaborate impersonation scheme involving artificial intelligence targeted senior U.S. and foreign officials in...
SLUBICE, Poland: Poland reinstated border controls with Germany and Lithuania on July 7, following Germany's earlier reintroduction...
WASHINGTON, D.C.: After months of warnings from former federal officials and weather experts, the deadly flash floods that struck the...
WASHINGTON, D.C.: An elaborate impersonation scheme involving artificial intelligence targeted senior U.S. and foreign officials in...
(Photo credit: Patrick Gorski-Imagn Images) Behind right-hander Quinn Priester, the Milwaukee Brewers will look to continue their...
(Photo credit: Jerome Miron-Imagn Images) The Miami Marlins and Baltimore Orioles have been counted out for much of the past couple...
(Photo credit: Ed Szczepanski-Imagn Images) The Los Angeles Dodgers will attempt to stabilize their dwindling National League West...
Washington [US], July 10 (ANI): Senate Republicans are increasingly concerned that Elon Musk's escalating feud with US President Donald...
(Photo credit: Brett Davis-Imagn Images) After getting a win in the series opener against the host Baltimore Orioles, the New York...