Highlights for the three months ended March 31, 2009:
· Shipments of 16.0 million tonnes, down 6% as compared to Q408
· Sales of $15.1 billion, down 32% as compared to Q408
· EBITDA1 of $0.9 billion, in-line with guidance
· Net loss of $1.1 billion due in part to $1.2 billion exceptional charges pre-tax2
· Net debt of $26.7 billion at the end of Q109 and pro forma3 liquidity of $13.2 billion
· Extension of maturity to 2012 of $6.34 billion in debt through Forward Start5 facilities and completion of $1.6 billion (€1.25 billion) convertible bond issuance on April 1, 2009
· Potential for price increase during Q209 and Q309 across major markets and products
· Continuing temporary production cuts in-line with reduced demand
· Industrial optimization measures implemented resulting in more than $6 billion of annualized
temporary fixed cost reductions in Q1 2009, and expected to increase to more than $7.5 billion
on an annualized basis in Q2 2009
· Confirming target to achieve management gains of $2 billion of sustainable SG&A and fixed
cost reduction in 2009
1 EBITDA is defined as operating income plus depreciation, impairment expenses and exceptional items.
2 During the first quarter of 2009, the Company recorded exceptional charges amounting to $1.2 billion pre-tax related primarily to write-downs of inventory.
3 Pro forma liquidity position includes the $1.6 billion (EUR 1.25 billion) cash proceeds from convertible bond that settled on April
4 Includes additional $0.3 billion of Forward Start facilities announced on April 28, 2009
5 AForward Start facility is a committed facility to refinance an existing facility upon its maturity.
· Reiterating working capital rotation days6 target of 75-85 days during 2009
· Re-affirming target to reduce net debt by $10 billion by the end of 2009
Guidance for second quarter 2009:
Commenting, Mr. Lakshmi N. Mittal, Chairman and CEO, ArcelorMittal, said:
“Strong measures have been taken to reduce our cost considerably and liquidity remains healthy with
an extended debt maturity profile. Although market conditions remain challenging, a technical recovery
is inevitable and ArcelorMittal will benefit from this.