Steelmaker ArcelorMittal (MT +0.81%) posted a steep net loss for its third quarter and has proposed a sharp cut in its dividend, the company announced today.
ArcelorMittal's 3Q revenues were $19.7 billion with a reported net loss of $709 million, or $0.46 per share. The former was broadly in line with expectations, but analysts had anticipated a positive EPS of around $0.14.
Revenues were $22.5 billion in the previous quarter and $24.2 billion in the year-ago quarter. The company netted a profit in both those periods of $959 million and $659 million, respectively.
The company attributed the shortfall in 3Q results to the economic slowdown in China and the negative development of steel prices, among other factors.
Citing the global economic conditions and the need to service some of its net debt of over $23 billion, ArcelorMittal's board of directors has proposed a cut of more than 70% in the firm's dividend, to $0.20 per share for 2013 from 2012's level of $0.75.
