ArcelorMittal posts $8bn loss

World’s largest steelmaker says 2015 was a very difficult year for steel and mining industries, with steel prices falling because of excess capacity in China

The world’s largest steelmaker ArcelorMittal has posted an annual loss of $7.9 billion (£5.4 billion) for 2015, compared to $1.86 billion in 2014, amid the fall in commodity prices.

The loss includes $4.8 billion of writedowns, mainly in its mining division, and $1.4 billion of exceptional charges in its steel operations.

Sales dropped 20% to $63.6 billion, which mostly reflects falling prices as the company's iron ore production and steel shipments only dipped marginally.

It produced 92.5 million tonnes of crude steel in 2015 and 62.6 million tonnes of iron ore in the year.

The company announced the sale of the company’s 35% shareholding in Gestamp Automocion, a Spanish engineering company, to the majority shareholding Riberas family for €875 million.

Lakshmi Mittal, chairman and chief executive of ArcelorMittal, said 2015 was a very difficult year for steel and mining industries, with steel prices falling because of excess capacity in China.

He said: “The company had already announced plans to reduce the cash requirements of the business and improve pre-tax earning in 2016. A more detailed long-term strategic review has now been completed, setting out the performance improvement potential for the five year period to 2020. 

“Looking ahead it is clear that those steel companies with a combination of the right assets, the right strategy and the right balance sheet will prosper. We are confident ArcelorMittal has this combination and that we are in a strong position to deliver on the targets identified and cement our position as the world’s leading steel company.” 

The company’s Amsterdam-listed shares fell almost 9% to €3.37 following the announcement and have sunk more than 60% in the past 12 months.