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ARCELORMITTAL SOUTH AFRICA LIMITED - ACL - Trading Statement and Business Reorganisation

Release Date: 10/07/2019 10:00
Code(s): ACL     PDF:  
 
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ACL - Trading Statement and Business Reorganisation

ArcelorMittal South Africa Limited
(Incorporated in the Republic of South Africa)
(Registration Number 1989/002164/06)
Share Code: ACL ISIN: ZAE000134961
(“ArcelorMittal South Africa” or “the Company”)

TRADING STATEMENT AND BUSINESS REORGANISATION

In terms of the JSE Limited Listings Requirements (“the Listings Requirements”),
companies are required to publish a trading statement as soon as they are satisfied
that there is a reasonable degree of certainty that the financial results for the six
month period ended 30 June 2019 (“the period”) being reported are expected to differ
by at least 20% from those of the previous corresponding reporting period, released
on the Johannesburg Stock Exchange News Service (“SENS”) on 01 August 2018 ("the
comparative period").

Shareholders are advised that based on information currently available, the Company
expects:
   • headline earnings for the period to decrease by at least R650 million (headline
      earnings for 2018 was R54 million) to a headline loss, resulting in a decrease
      in headline earnings per share by at least 59 cents.
   • loss for the period to improve by at least R700 million (44%), resulting in an
      improvement of the loss per share by at least 64 cents.

The financial information on which this trading statement is based has not been
reviewed and reported on by the Company’s external auditors. ArcelorMittal South
Africa’s interim results for the period may further be affected during the
finalisation of the results.

A further trading statement will be released as soon as the Company has reasonable
certainty on the expected headline earning per share and loss per share ranges for
the period as required by the Listings Requirements.

RESTRUCTURING AS A RESULT OF OPERATIONAL REQUIREMENTS: ARCELORMITTAL SOUTH AFRICA
COMMENCES CONSULTATION PROCESS IN TERMS OF SECTION 189(3) OF THE LABOUR RELATIONS ACT

Shareholders are also advised that due to the difficult domestic economic environment,
the South African steel industry continues to face significant challenges. Certain
costs that are not within the Company’s control such as high electricity, rail, port,
and primary raw material costs have contributed to these challenges.

Accordingly, ArcelorMittal South Africa has embarked on several initiatives to improve
efficiencies and address expenditure that is within its control.        However, these
cost-saving initiatives will not be sufficient. More significant measures have become
necessary, including the review of staffing levels, together with other interventions.

Shareholders are accordingly advised that the Company will be commencing with a
consultation process in terms of section 189(3) of the Labour Relations Act 66 of
1995. A large-scale restructuring is contemplated, and it is anticipated that in
excess of 2 000 positions (full time equivalents) may be affected. The final out-come
and number of positions affected is subject to a formal consultation process.

ArcelorMittal South Africa’s interim results for the six months ended 30 June 2019
will be released on SENS on 01 August 2019, with a presentation in Johannesburg on
the same day. The presentation will be available for all stakeholders on the Company’s
website at www.southafrica.arcelormittal.com.

Vanderbijlpark
10 July 2019

For further information please contact:
Vuyo Mtawa: Manager: Corporate Communications
Tel: (016) 889 4100

Company Secretary: Nomonde Bam

Sponsor to ArcelorMittal South Africa Limited
Absa Bank Limited (acting through its Corporate and Investment Banking division)

Date: 10/07/2019 10:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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