ArcelorMittal CEO Expects Stronger Global Economy in 2013

   By Matt Day 
 

The global economy is stabilizing, led by accelerating activity in China and the U.S., and should pick up steam in the months ahead, the chief executive of ArcelorMittal (MT) said Wednesday.

"The global economy is stabilizing and should gradually strengthen over the course of 2013," Lakshmi Mittal said on a conference call to discuss the steelmaker's fourth-quarter results.

But Mr. Mittal said the economic environment in Europe, the largest market for the Luxembourg-based steelmaker, will "remain challenging."

ArcelorMittal, the world's largest steelmaker in terms of production, expects steel consumption in the 27 members of the European Union to fall 1% this year, a slower contraction than last year's 9% decline. In the U.S., ArcelorMittal is forecasting demand growth of 4%.

"Unlike in Europe, credit is available in the U.S., and businesses are getting loans," Mr. Mittal said.

Demand from China, by far the largest consumer of steel, will grow 3%, the steelmaker said. Globally, ArcelorMittal expects steel consumption to rise 3% this year.

"Economic growth appears to be picking up" in China, Mr. Mittal said.

ArcelorMittal on Wednesday reported a net loss of $3.99 billion during the final three months of 2012, from a loss of $1 billion in the same period a year earlier. The fourth-quarter results included a $4.3 billion write-down of its struggling European division.

The company is operating just 16 of its 25 blast furnaces in Europe, in response to weak demand and ample capacity. Plans to close facilities in Belgium and France have resulted in protests from government officials and organized labor leaders.

Write to Matt Day at [e-mail]

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