Luxembourg, July 29, 2009 - ArcelorMittal (referred to as “ArcelorMittal” or the “Company”) (MT(New York, Amsterdam, Brussels, Luxembourg, Paris) MTS (Madrid)), the world’s leading steel company, today announced results for the three and six month periods ended June 30, 2009.
Highlights for the three months ended June 30, 2009:
· Shipments of 17.0 million tonnes, up 6% as compared to Q1 2009
· EBITDA1 of $1.2 billion, up 38% as compared to Q1 2009
· Net loss of $0.8 billion due in part to $1.2 billion exceptional charges2 pre-tax
Reinforced financial structure and debt maturity profile extended
§ Net debt reduced by $3.8 billion to $22.9 billion and gearing reduced from 48% to 37%
during Q2 2009
§ Successful equity, convertible and bond financing transactions raising approximately $11.4
billion during Q2 2009
§ Pro forma liquidity of $16.1 billion (after cancellation of $3.2 billion of credit facilities and
prepayment of $3.4 billion of bank debt), resulting in no significant term loan debt
repayments due until end of 2010
§ Financial covenant (net debt/EBITDA) in principal credit facilities will be amended to 4.5x
in December 2009 and 4.0x in June 2010, reverting to 3.5x in December 2010
Progress of industrial and financial plan:
· Gradual production increase in line with demand improvement
· More than $10 billion of total annualized fixed cost reduction, including $8.4 billion ($6.6
billion at constant dollar3) of annualized temporary fixed cost reduction and $1.7 billion of
sustainable management gains rate achieved as of Q2 2009
· Working capital rotation days4 reduced to 98 days from 115 days; progressing towards
target of 75-85 days by end of 2009
1 EBITDA is defined as operating income plus depreciation, impairment expenses and exceptional items.
2 During the second quarter of 2009, the Company recorded exceptional charges amounting to $1.2 billion pre-tax related
primarily to write-downs of inventory ($0.9 billion) and provisions for workforce reduction ($0.3 billion).
· EBITDA1 of $1.2 billion, up 38% as compared to Q1 2009
· Net loss of $0.8 billion due in part to $1.2 billion exceptional charges2 pre-tax
Reinforced financial structure and debt maturity profile extended
§ Net debt reduced by $3.8 billion to $22.9 billion and gearing reduced from 48% to 37%
during Q2 2009
§ Successful equity, convertible and bond financing transactions raising approximately $11.4
billion during Q2 2009
§ Pro forma liquidity of $16.1 billion (after cancellation of $3.2 billion of credit facilities and
prepayment of $3.4 billion of bank debt), resulting in no significant term loan debt
repayments due until end of 2010
§ Financial covenant (net debt/EBITDA) in principal credit facilities will be amended to 4.5x
in December 2009 and 4.0x in June 2010, reverting to 3.5x in December 2010
Progress of industrial and financial plan:
· Gradual production increase in line with demand improvement
· More than $10 billion of total annualized fixed cost reduction, including $8.4 billion ($6.6
billion at constant dollar3) of annualized temporary fixed cost reduction and $1.7 billion of
sustainable management gains rate achieved as of Q2 2009
· Working capital rotation days4 reduced to 98 days from 115 days; progressing towards
target of 75-85 days by end of 2009
1 EBITDA is defined as operating income plus depreciation, impairment expenses and exceptional items.
2 During the second quarter of 2009, the Company recorded exceptional charges amounting to $1.2 billion pre-tax related
primarily to write-downs of inventory ($0.9 billion) and provisions for workforce reduction ($0.3 billion).
3 At average 2008 exchange rate
Guidance for third quarter 2009:
Guidance for third quarter 2009:
· EBITDA expected to be between $1.4-$1.8 billion.
Commenting, Mr. Lakshmi N. Mittal, Chairman and CEO, ArcelorMittal, said:
“The first six months of the year have been some of the most challenging the steel industry has
ever experienced. Operating in such a difficult environment, I am pleased with the way in which
ArcelorMittal has responded to adapt production, cut costs and strengthen our balance sheet.
In recent weeks we have started to see some initial signs of recovery, as a result of which we are
now planning to re-start production at some facilities. Provided there are no further unexpected
economic deteriorations, we should see continued gradual improvement throughout the second
half of the year, with full recovery remaining slow and progressive.”
Commenting, Mr. Lakshmi N. Mittal, Chairman and CEO, ArcelorMittal, said:
“The first six months of the year have been some of the most challenging the steel industry has
ever experienced. Operating in such a difficult environment, I am pleased with the way in which
ArcelorMittal has responded to adapt production, cut costs and strengthen our balance sheet.
In recent weeks we have started to see some initial signs of recovery, as a result of which we are
now planning to re-start production at some facilities. Provided there are no further unexpected
economic deteriorations, we should see continued gradual improvement throughout the second
half of the year, with full recovery remaining slow and progressive.”
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