ArcelorMittal reports third quarter 2010 results
Luxembourg, October 26, 2010 - 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 months and nine month periods ended September 30, 2010.
Highlights for the three months ended September 30, 2010:
- Health and Safety frequency rate [2] was 1.9x in Q3 2010 as compared with 1.8x at Q2 2010
- EBITDA [3] of $2.3 billion in Q3 2010
- Net debt [4] increased by $1.8 billion to $22.1 billion during Q3 2010 primarily due to foreign exchange impacts and increased working capital
Performance and industrial plan:
- Capacity utilization decreased to 71% in Q3 2010 from 78% in Q2 2010 due to seasonal slowdown
- $3.0 billion of annualized sustainable cost reduction achieved by the end of Q3 2010 (same level as Q2 2010); On track to reach $5.0 billion by end of 2012
- Own iron ore production to reach approximately 50 million tonnes by end of 2010
Guidance for the three months ended December 31, 2010:
- EBITDA expected to be between $1.5 billion - $1.9 billion (average steel selling prices and EBITDA/tonne are expected to decline)
- Capacity utilization is expected to remain at Q3 2010 levels but shipments are expected to increase
Financial highlights (on the basis of IFRS [1] , amounts in USD):
| (USDm) unless otherwise shown | 3Q 10 | 2Q 10 | 3Q 09 | 9M 10 | 9M 09 |
|---|---|---|---|---|---|
| Sales | $21,039 | $21,651 | $16,170 | $61,342 | $46,468 |
| EBITDA | 2,265 | 3,002 | 1,610 | 7,155 | 3,714 |
| Operating Income / (Loss) | 1,057 | 1,723 | 326 | 3,466 | (2,341) |
| Net Income / (Loss) | 1,350 | 1,704 | 910 | 3,733 | (945) |
| Iron Ore Production (Mt) | 17.4 | 16.4 | 13.1 | 49.6 | 37.1 |
| Crude Steel Production (Mt) | 22.7 | 24.8 | 19.6 | 70.6 | 50.7 |
| Steel Shipments (Mt) | 21.0 | 22.8 | 18.2 | 65.2 | 51.1 |
| EBITDA/tonne (US$/t) | 108 | 132 | 89 | 110 | 73 |
| Operating Income (loss)/tonne (US$/t) | 50 | 76 | 18 | 53 | (46) |
| Basic Earnings Per Share (USD) | 0.89 | 1.13 | 0.60 | 2.47 | (0.66) |
Commenting, Mr. Lakshmi N. Mittal, Chairman and CEO, ArcelorMittal, said:
In Q3 the business performed towards the lower end of our expectations against a background of seasonally lower volumes, weakening spot prices and higher costs. Our outlook for Q4 remains cautious as the expected higher input prices continue to work through the business and demand remains muted, though with some regional differences.
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