ArcelorMittal Rodange & Schifflange report 15.3 million euro loss
Although in general the company’s profits have risen sharply, ArcelorMittal Rodange & Schifflange (AMRS) yesterday released its half-annual report, the branch of the company revealed a loss of 15.3 million euros in the first six months of 2011, an increased loss of 27% compared to last year’s 12 million loss. In 2010, the consortium had recorded a total loss of 37.5 million euros.
However, at the same time, sales of the steel group grew strongly to 30% to reach profits of 247.5 million euro compared to 190.5 million euros a year earlier. Steel exports have also risen sharply increasing tonnage figures from 407,300 tonnes in the first half of 2010 to 426,400 tonnes in 2011.
The company’s negative results and their explanations are primarily in relation to raw material costs. It is in this context that, for the first six months of the year, net company profits (Ebitda) will close with a loss of 5.3 million euros, an increase of 86% compared to 2010’s 2.8 million.
250 jobs to be cut
The company can however, already be pleased at the first positive results of the strategic plan agreed in the first quarter. Indeed, while Ebitda was almost 5 million euros in debt from January to March, it was only about -0.3 million euros in the second quarter.
The company is therefore in a restructuring phase. To allow branches to find a loss financially acceptable, it was decided in June to significantly reduce the wage costs to the tune of 12.3 million euros in the first quarter and 11.7 million euros in the second, by cutting 250 jobs from a total of 800. No redundancies are envisaged however, such reduction will be made on the basis of voluntary redundancy or through relocations to other sites within the group. About half of the employees affected by this restructuring will be offered positions in Differdange or Esch-Belval.
In the Greater region, the situation is far from being any better: there are growing concerns in Florange, near Metz, after the publication of Luxembourg’s results. Moreover, it was decided to stop production by 2012 at the Belgian Fontaine l'Eveque site which employs about 60 workers, due to a drop in the construction market.