ArcelorMittal reports full year and fourth quarter 2010 results
Luxembourg, February 8, 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 for the three and twelve month periods ended December 31, 2010.
Successful spin-off of stainless steel business (Aperam) following shareholders' approval on January 25, 2011. Accordingly, stainless steel results for 4Q 2010 are recorded as discontinued operations, and prior results and operational KPI's have been recast to reflect the new presentation ..
Highlights:
- Health and Safety frequency rate improved in 2010 to 1.8x as compared to 1.9x in 2009; marked improvement in 4Q 2010 with rate at 1.6x compared with 1.9x for 3Q 2010.
- Full year EBITDA of $8.5 billion (excluding $0.4 billion for Aperam), 52% higher than 2009; full-year net income of $2.9 billion or $1.93 per share.
- 4Q 2010 EBITDA of $1.9 billion (including $0.1 billion from sale of CO 2 credits); Q4 2010 net loss of $0.8 billion (or $0.51 loss per share) primarily due to impairment associated with the stainless demerger.
- Shipments of 85.0 Mt in 2010, 22% higher than 2009; 4Q 2010 shipments of 21.1 Mt up 3% vs. 3Q 2010.
- Strong cash flow from continuing operations of $3.3 billion in 4Q 2010 ($3.8 billion for 2010) led to a $2.3 billion reduction in net debt to $19.7 billion as of December 31, 2010, as compared to $22.1 billion as of September 30, 2010.
- Own iron ore production of 48.9 Mt in 2010 as compared to 37.7 Mt in 2009; 12.6 Mt in 4Q 2010.
- Successful spin-off of stainless steel business (Aperam) following shareholders' approval on January 25, 2011.
- ArcelorMittal has along with Nunavut Iron Ore jointly acquired more than 90% of Baffinland Iron Mines Corporation; the Company's immediate focus will be on completing the project feasibility studies.
Outlook and guidance:
- Volumes are expected to increase in 1Q 2011 as the gradual underlying demand recovery continues and market sentiment improves. Additionally, selling prices are adjusting to rapid increases in raw material prices.
- Q1 2011 EBITDA expected to be between $2.0 - $2.5 billion
- Q1 2011 capacity utilisation expected to rise to ~76% (vs. 69% in Q4 2010); working capital requirements and net debt expected to increase accordingly (the latter sharply)
- 2011 CAPEX budget of $5 billion of which $1.4 billion for mining
- 2011 target of ~10% increase in our own iron ore production as compared to 2010
Financial highlights (on the basis of IFRS , amounts in USD):
| (USDm) unless otherwise shown | 4Q 10 | 3Q 10 | 4Q 09 | 12M 10 | 12M 09 |
|---|---|---|---|---|---|
| Sales | $20,699 | $19,744 | $17,434 | $78,025 | $61,021 |
| EBITDA | 1,853 | 2,162 | 2,056 | 8,525 | 5,600 |
| Operating Income / (loss) | 397 | 1,028 | 713 | 3,605 | (1,470) |
| (Loss) / income from discontinued operations | (547) | 38 | 40 | (330) | (57) |
| Net (loss) / Income | (780) | 1,350 | 1,109 | 2,916 | 157 |
| Basic (loss) / Earnings Per Share (USD) | (0.51) | 0.89 | 0.73 | 1.93 | 0.11 |
| Continuing operations | |||||
| Iron Ore Production (Mt) | 18.9 | 17.4 | 15.6 | 68.5 | 52.7 |
| Crude Steel Production (Mt) | 21.6 | 22.2 | 22.1 | 90.6 | 71.6 |
| Steel Shipments (Mt) | 21.1 | 20.5 | 19.5 | 85.0 | 69.6 |
| EBITDA/tonne (US$/t) | 88 | 105 | 105 | 100 | 80 |
| Operating Income (loss)/tonne (US$/t) | 19 | 50 | 36 | 42 | (21) |
Commenting, Mr. Lakshmi N. Mittal, Chairman and CEO, ArcelorMittal, said:
"Although 2010 continued to be a challenging year, as anticipated we saw a slow and progressive recovery which enabled us to deliver a substantially improved performance compared with 2009. The gradual underlying demand recovery continues and we expect 2011 to be stronger than 2010.
The year has started positively with the successful spin-off of Aperam. We have also continued to pursue expansion in mining and have recently acquired control of Baffinland, an extremely high-quality iron-ore asset in Canada."
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