The steel giant accounted for the loss saying, " The loss in the first quarter of 2009 resulted from exceptional charges amounting to $1.2 billion primarily related to write-downs of inventory."
The company's earnings slipped from the same quarter in 2008 with a profit of $ 3.614 billion to the $ 2.632 billion fall in the fourth quarter of 2008.
The company's chairman, Lakshmi Mittal said that the company will continue to cut production due to the reduced demand.
"Strong measures have been taken to reduce our cost considerably and liquidity remains healthy," he said.
He added that strong measure have been taken to reduce costs and that technical recovery is inevitable with the challenging market conditions.