core sector communique

ArcelorMittal reports fourth quarter 2011 andfull year 2011 results

Luxembourg, February7, 2012- ArcelorMittal(referred to as “ArcelorMittal” or the “Company”) (MT (New York, Amsterdam,Paris, Luxembourg), MTS (Madrid)), the world’s leading steel company, today,announced results[1]for the three and twelve month periods ended December 31, 2011.

Highlights:

·         Health and safety performance improved in 2011 with an annual LTIF rateof 1.4x as compared to1.8x in 2010; marked improvement shown in 4Q 2011 with an LTIF rate of 1.2x

·         FY 2011 EBITDAof$10.1 billion (+18.7% y-o-y); 4Q 2011 EBITDA of $1.7 billion (including positive$0.1 billion from sale of CO2 credits) in challenging market conditions

·         FY 2011 net income of$2.3 billion or $1.46 per share; 4Q 2011 net loss of $1.0 billion due in part to$1.3 billion of non-cash charges (reduction of deferred tax assets ($0.9billion), together with asset impairments ($0.2 billion) and restructuring charges associated with asset optimization ($0.2 billion))

·         4Q 2011 steel shipments of 20.6Mt down 2.5% vs. 3Q 2011 driven mainly by destocking in Europe

·         Mining production targets achieved: FY 2011 iron ore production of 54.1Mt (+10.5% y-o-y), of which28.0Mt shipped at market prices(+11.5% y-o-y); FY 2011 coal production of8.3Mt (+ 20% y-o-y), of which 4.9Mt shipped at market prices (+45%y-o-y)

·         Net debt reduced by$2.4 billion during 4Q 2011 to $22.5 billion as of December 31, driven by improved cash flow from operations of $2.9 billion, inflow of $0.8 billion from MacArthur Coal divestment and foreign exchange gains

·         The Board proposes to maintain the annual dividend at $0.75 per share, subject to AGM approval

Outlook and guidance:

·         1H 2012 EBITDA likely to be lower than the comparable period of 2011 and above 2H 2011 level;supported by continued progress on management gains and asset optimization plans

·         Overall steel shipment volumes in 1H 2012 are expected to be at a similar level as in 1H 2011; Mining production volumes expected to be higher than 1H 2011 in line with plans to increase own iron ore and coal production in FY 2012 by approximately 10%

·         2012 Capex expected to be approximately $4-4.5 billion

·         Further reduction in net debt anticipated with a focus on working capital management and non-core asset divestments, per the Company’s stated objective to retain its investment grade credit rating

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

“The progressive recovery that we have been experiencing was impacted in the second half of the year by the growing uncertainty over the economic situation in Europe, which particularly affected sentiment and performance in the fourth quarter.Nevertheless, against this backdrop Arcelor Mittal delivered an improved underlying performance compared with 2010 and met our expectation of a higher EBITDA in the second half compared with the previous year.The Company continues to benefit from its diverse geographic presence and growing mining business, which delivered on its targets to increase iron-ore and coal production by 10% and 20% respectively. I must also remark on our health and safety performance, which showed an improvement in the injury frequency rate to1.2x in the fourth quarter.

Looking ahead to 2012,the situation in Europe remains a live concern. Despite the continued uncertainty in this market, however, we are seeing an improvement in sentiment compared with the fourth quarter.Steel shipment volumes for the first six months are expected to be similar to the first half of 2011 and we are again targeting increased production from our mining business.”