MT - ArcelorMittal South Africa slashes forecast for 2022 profit

ArcelorMittal ( NYSE: MT ) warned Tuesday its FY 2022 profit at its South African operations will drop by 60%-65% on lower steel prices, weaker demand and higher coal and transport prices, as well as poor rail service, a two-week strike over wages and South Africa's worst-ever power cuts.

ArcelorMittal South Africa ( MT ) said it expects headline earnings per share - the main profit measure for South African companies - of 2.15-2.45 rand/share for the year, down from 6.15 rand/share previously.

The South African operations' declining profit fall is in sharp contrast to the 22% rise in headline earnings it reported at its half-year, although it warned then of the threat posed by a deteriorating global economic outlook.

ArcelorMittal ( MT ) shares are valued at a significant discount compared to U.S. peers, which opens substantial potential upside, Insight Analytics writes in an analysis posted recently on Seeking Alpha .

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