ArcelorMittal reports third quarter 2011 results

by ArcelorMittal 03 Nov 07:43

Luxembourg, November 3, 2011 – ArcelorMittal (referred to as “ArcelorMittal” or the “Company”) (MT (New York, Amsterdam, Paris, Brussels, Luxembourg), MTS (Madrid)), the world’s leading steel company, today announced results ¹ for the three and nine month periods ended September 30, 2011.
Highlights:
Health & Safety lost time injury frequency rate ² remained constant at 1.5x in 3Q 2011
3Q 2011 EBITDA ³ increased by 11.4% to $2.4 billion compared to Q3 2010; EBITDA of $8.4 billion for first nine months 2011, 25.9% higher than first nine months 2010
3Q 2011 steel shipments of 21.1 Mt, 2.7% higher than 3Q 2010
3Q 2011 EBITDA per tonne of $114, 8.3% higher than 3Q 2010
3Q 2011 own iron ore production of 14.1 Mt, up 8.4% y-o-y; 6.7 Mt market price ⁴ iron ore shipped (up 9.6% y-o-y)
Net debt ⁵ at September 30, 2011 of $24.9 billion as compared to $25.0 billion at June 30, 2011
Performance and industrial plan:
$3.8 billion of annualized sustainable cost reduction achieved by the end of Q3 2011; on track to reach $4.8 billion by end of 2012
New $1 billion asset optimization plan launched to generate sustainable EBITDA improvement; intention to close 2 blast furnaces, sinter plant, steel shop and continuous casters in Liege, Belgium ⁶
Liberia iron ore phase 1 complete, with 2011 targeted production of 1 million metric tonnes, increasing to 4 million tonnes in 2012; phase 2 expansion to 15 million metric tonnes is in final decision phase
ArcelorMittal Mines Canada expansion project on track to increase iron ore capacity from 16 Mt to 24 Mt by 2013
Outlook and guidance:
EBITDA for 2H 2011 is expected to be above the comparable period of 2010
Steel shipments in 4Q 2011 are expected to be lower than 3Q 2011 levels reflecting customers’ “wait and see” approach
On track to increase FY 2011 own iron ore and coal production by 10% and 20%, respectively, as compared to 2010
Net debt at year-end is expected to be higher than 3Q 2011 levels primarily due to the temporary investment in Macarthur
Focus on core growth capex; full year 2011 capex therefore is expected to be below previous target of $5.5 billion