core sector communique

ArcelorMittal reports second quarter 2011 and half year 2011 results

•  

Luxembourg, July 27, 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 six month periods ended June 30, 2011.

Highlights:

• Health & Safety lost time injury frequency rate [2] deteriorated marginally to 1.5x in 2Q 2011 from 1.4x in 1Q 2011
• EBITDA [3] increased by 21.5% y-o-y to $3.4 billion in 2Q 2011; EBITDA of $6.0 billion for first 6 months 2011, 32.9% higher than first 6 months 2010
• 2Q 2011 steel shipments of 22.2 Mt, essentially flat y-o-y
• 2Q 2011 EBITDA per ton of $154, 22% higher than 2Q 2010
• 2Q 2011 own iron ore production of 13.1 Mt, up 2.4% y-o-y; 7.0 Mt iron ore shipped at market price [4] , flat y-o-y
• Net debt [5] increased $2.4 billion to $25.0 billion during 2Q 2011 due primarily to investment in working capital

Outlook and guidance:

• Due to the continued underlying demand recovery, steel shipments in the second half 2011 are expected to be higher than the same period of 2010
• Results of our mining business expected to further improve due to increased production and shipments
• EBITDA per-tonne in the last six months of 2011 is expected to exceed the level achieved in the same period of 2010
• Full year 2011 capex target is increased by 10% from $5.0 billion to $5.5 billion due to recently announced investments
• For 3Q 2011, EBITDA is expected to be approximately $2.4 - $2.8 billion. Working capital requirements and net debt are expected to remain stable as compared to the 2Q 2011 levels

Growth opportunities advancing

• Liberia (phase 1) iron ore production has commenced, with 2011 target of 1 million tonnes increasing to 4 million tonnes in 2012
• Canada expansion project on track to expand iron ore capacity from 16 Mt to 24 Mt by 2013
• Vega Do Sul expansion plans in Brazil to increase hot dipped galvanized ("HDG") capacity by 0.6 Mt and cold rolled ("CR") capacity by 0.7 Mt by 2014

Financial highlights on the basis of IFRS [1] (amounts in USD):

USDm unless otherwise shown	2Q 11	1Q 11	2Q 10	6M 11	6M 10
Sales	$25,126	$22,184	$20,154	$47,310	$37,582
EBITDA	3,413	2,582	2,809	5,995	4,510
Operating income	2,252	1,431	1,603	3,683	2,180
Income / (loss) from discontinued operations	-	461	127	461	179
Net income / (loss)	1,535	1,069	1,706	2,604	2,346
Basic earnings / (loss) per share (USD)	0.99	0.69	1.13	1.68	1.55
Continuing operations
Own iron ore production (Mt)	13.1	11.8	12.8	24.9	23.4
Iron ore shipped internally and externally at market price (Mt) [4]	7.0	5.9	6.9	12.9	12.3
Crude steel production (Mt)	24.4	23.5	24.3	47.9	46.8
Steel shipments (Mt)	22.2	22.0	22.3	44.1	43.3
EBITDA/tonne (US$/t)	154	118	126	136	104

Commenting, Mr. Lakshmi N. Mittal, Chairman and CEO, ArcelorMittal, said:

"As expected the Company has delivered a strong performance in the second quarter of 2011 underpinned by higher steel selling prices. Although the third quarter will experience some seasonal impact, we do not expect this to be as pronounced as last year, and overall the group's performance in the second half of 2011 should compare favorably with the second half of 2010."