News24
10 Jul 2019, 22:13 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 The UK News 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 The UK News.
More InformationWASHINGTON, DC - Washington is locked down and U.S. law enforcement officials are geared up for pro-Trump marches in all ...
WASHINGTON, DC - In a sign of the changing political environment in the Middle East, the United States military will ...
WASHINGTON, DC - Outgoing U.S. President Donald Trump's administration carried out its last federal execution when Dustin John Higgs, convicted ...
A Chinese government survey ship was intercepted "running dark" without broadcasting its position via AIS (Automated Identification System) by Indonesian ...
WASHINGTON, DC The man who struck down three U.S. Capitol Police officers with a fire extinguisher during last week's storming ...
WASHINGTON, DC - A Utah man has been charged with breaking into the U.S. Capitol last week wearing a bullet-proof ...
Manchester [UK], January 18 (ANI): Manchester City's John Stones expressed delight over scoring his first two Premier League goals for ...
The crew of American Magic had to cut themselves free in a heart-stopping moment after being trapped beneath the capsized ...
Vasco (Goa) [India], January 18 (ANI): Bengaluru FC announced that midfielder Dimas Delgado has returned to Spain owing to a ...
Liverpool [UK], January 18 (ANI): After being held to a goalless draw by Manchester United, Liverpool manager Jurgen Klopp said ...
Manchester City moved up to second in the Premier League and within two points of leaders Manchester United as John ...
Jurgen Klopp said there are no easy answers as to why Liverpool have failed to score in three consecutive league ...