https://www.engineeringnews.co.za
Africa|Environment|rail|Steel
Africa|Environment|rail|Steel
africa|environment|rail|steel

AMSA shares fall on job cuts warning

10th July 2019

By: Marleny Arnoldi

Deputy Editor Online

     

Font size: - +

Primary steel producer ArcelorMittal South Africa’s (AMSA’s) share price on the JSE fell by 10.4% on Wednesday morning after it said it could possibly cut more than 2 000 jobs.

In a trading update for the six months ended June 30, it said a difficult domestic economic environment was negatively impacting on the local steel industry. This was exacerbated by certain costs, including higher electricity, rail and port tariffs and higher primary raw materials costs, that were not within AMSA’s control.

AMSA has, therefore, embarked on initiatives to improve efficiencies and cut costs that are within its control, but these have been insufficient, resulting in the need to review staffing levels, besides other possible interventions.

The steel producer has started a Section 189(3) consultation process with labour unions.

The exact number of jobs to be cut would only be confirmed once a formal consultation process was completed.

AMSA, which will publish its interim results on August 1, has also advised shareholders that its headline earnings for the period are likely to decrease by at least R650-million, or 59c apiece, to a headline loss.

Its loss for the period is, however, expected to narrow by R700-million, or 64c a share. This compares with the R1.6-billion loss reported for the first half of 2018.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Showroom

ESAB showroom image
ESAB South Africa

ESAB South Arica, the leading supplier of high-end welding and cutting products to the Southern African industrial market is based in...

VISIT SHOWROOM 
WearCheck
WearCheck

Leading condition monitoring specialists, WearCheck, help boost machinery lifespan and reduce catastrophic component failure through the scientific...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine round up | 19 April 2024
Magazine round up | 19 April 2024
19th April 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.096 0.16s - 168pq - 2rq
Subscribe Now