Mittal puts his business first with $350m cut to dividend payout
Lakshmi Mittal, ArcelorMittal's chief executive and a 41 per cent shareholder, is set to lose dividends worth about $350m (£217m) after proposing to slash investor payouts at the steel maker by nearly three-quarters next year.
After reporting a plunge into the red in the third quarter, the ArcelorMittal board proposed cutting the full-year dividend to 20 cents a share in 2013 from 75 cents this year, as slowing demand from China, the world's biggest consumer of industrial metals, dragged it to a $709m deficit in the third quarter, from a $659m profit a year earlier.
A dividend cut of that magnitude would reduce the payout to Mr Mittal, Britain's richest man according to the Sunday Times "Rich List", from about $477m to $127m.
He said: "The already fragile global economy was further impacted in the third quarter of 2012 by the slowdown in China. This resulted in very challenging operating conditions for ArcelorMittal, which are expected to continue in the fourth quarter."
Third-quarter revenues fell by 19 per cent to $19.72bn as steel deliveries fell by 5.7 per cent to 19.9 million tonnes.
Economic weakness, particularly in Europe, prompted the ratings agency Standard & Poor's to cut the steel maker's debt to junk status in August.
- 1 Tunisia hotel attack: Locals form 'human shield' to protect hotel from gunman Seifeddine Rezgui
- 2 Greece crisis: Alexis Tsipras accepts troika bailout proposals with conditions
- 3 German ethics council calls for incest between siblings to be legalised by Government
- 4 French woman dies in freak bungee jumping accident
- 5 Facebook rainbow profile pictures likely being tracked by social network
Tunisia hotel attack: Locals form 'human shield' to protect hotel from gunman Seifeddine Rezgui
Russian officials ban yoga because it's too much like a religious cult
Greece crisis: Alexis Tsipras accepts troika bailout proposals with conditions
German ethics council calls for incest between siblings to be legalised by Government
Britain First insist their videos aren't racist in bizarre attack on comedian Jason Manford
The moment a Queen's Guard soldier lost it and drew his gun at annoying tourist
Greece crisis: IMF was pushed around by Angela Merkel and Nicholas Sarkozy – and now it is being humiliated
Greece crisis: The wider lesson is that it’s time to abandon this failed experiment in currencies
'I wish the BBC would stop calling it Islamic State' – David Cameron unleashes frustration at broadcaster
Pentagon accuses Russia of 'playing with fire' over nuclear threats towards Nato
They are neither a 'state' nor 'Islamic': Why we shouldn't call them Isis, Isil or IS
iJobs Money & Business
£15000 - £16000 per annum: Recruitment Genius: Customer Service Advisors are r...
£20000 - £25000 per annum + OTE £45K: SThree: SThree were established in 1986....
£40000 - £60000 per annum: Recruitment Genius: A Compliance Manager is require...
£22500 - £27000 per annum + OTE £45K: SThree: Since our inception in 1986, STh...