ArcelorMittal (AM) is reporting a net loss in 2012 of $3.726 billion or $2.41 per share, compared to a net income in 2011 of $2.263 billion or $1.46.

AM is also reporting a net loss in the fourth quarter of $3.987 billion or $2.58 per share, compared to a net loss in the third quarter $709 million or 46 cents and a net loss in the year-ago of $1 billion or 65 cents.

For the full-year AM recorded total impairment charges of $5 billion, including a $4.3 billion non-cash write-down of goodwill with respect to the company’s European businesses. That $4.3 billion goodwill impairment “is due to the weaker macroeconomic and market environment in Europe, where apparent steel demand fell by approximately 9 percent in 2012, bringing the cumulative demand decline to approximately 29 percent since 2007,” AM said in a statement released today.

“This weaker demand environment and expectations that it will persist over the near and medium term led to a downward revision of cash-flow expectations underlying the valuation of the European businesses to which goodwill had been allocated,” the company added.

In addition, full-year restructuring charges totaled $587 million and were chiefly related to the “implementation of asset optimization” impacting European businesses.

“2012 was a very difficult year for the steel industry, particularly in Europe were demand for steel fell a further 8.8 percent,” AM Chair and CEO Lakshmi Mittal said. “During the year we took a number of important steps to address the challenges we face, including concentrating our operational footprint on our more competitive assets and reducing net debt.

“Although we expect the challenges to continue in 2012, largely due to the fragility of the European economy, we have recently seen some more positive indications, which combined with the measures we have impacted to strengthen the business, we are expected to support an improvement in the profitability of our steel business this year. Marketable iron ore shipments are also expected to increase by approximately 20 percent as a result of the expansion at ArcelorMittal Mines Canada.”

•Sales of $84.213 billion ($93.973 billion in 2011).

•Shipments of $83.8 million metric tons (85.8 million in 2011).

•Crude steel production of 88.2 million metric tons (91.9 million in 2011).

•An operating loss of $3.2 billion (operating income of $4.9 billion in 2011).

•Operating income in 2012 of $517 million ($1.198 billion in 2011). An operating loss of $138 million in the fourth quarter, compared to an operating income of $3 million in the third quarter and an operating income of $1 million in the year-ago.

•Sales in 2012 of $20.152 billion ($21.035 billion in 2011). Sales in the fourth quarter of $4.683 billion, compared to $4.84 billion in the third quarter and $5.03 billion in the year-ago. “Sales were impacted by lower steel selling prices in North America (particularly in the plate market) as well as weak slab pricing in Brazil and Mexico,” the company said.

•Average selling price in 2012 of $854 per ton ($892 in 2011). Average selling price in the fourth quarter of $797 per ton, compared to $850 in the third quarter and $868 in the year-ago. “Average steel selling prices were impacted by a weaker mix with lower North American volumes offset by higher sales from South American following the blast furnace reline in Tubarao, Brazil,” the company said.

•Operating income per ton in 2012 of $23 ($54 in 2011). Operating loss per ton in the fourth quarter of $25, compared to an operating income per ton in the third quarter of $1 and an operating income per ton in the year-ago of $0.

•Crude steel production in 2012 of 23.922 million tons (24.215 million in 2011). Crude steel production in the fourth quarter of $5.933 million tons, compared to 5.726 million in the third quarter and 5.458 million in the year-ago.

•Shipments in 2012 of 22.291 million tons (compared to 22.249 million in 2011). Shipments in the fourth quarter of 5.533 million tons, compared to 5.351 million in the third quarter and 5.458 million in the year-ago.

Posted 2/6/2013