Arcelor Mittal posts weak quarterly results; expects improvement in this year

World's largest steel producer Arcelor Mittal had posted lowest quarterly results in last 3 years on European debt crisis and weak demand for steel. Although company CEO, Lakshmi Mittal expects some improvement.

“Although we expect the challenges to continue in 2013, largely due to the fragility of the European economy, we have recently seen some more positive indicators,” Lakshmi Mittal, chief executive officer of the Luxembourg-based company, said in the statement. These will “support an improvement in the profitability of our steel business this year.”

Steel-industry earnings have slumped as Europe’s economic crisis saps demand and slower Chinese growth weighs on commodity prices. European steelmakers are grappling with excess capacity that’s pushing down prices as operating costs climb. The region has capacity to make about 210 million metric tons of steel a year, while demand in a “normal market” is 150 million to 160 million tons, according to industry lobby group Eurofer.