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
Guidance for third quarter 2009:
EBITDA expected to be between $1.4-$1.8 billion.
Commenting, Mr. Lakshmi N. Mittal, Chairman and CEO, ArcelorMittal, said:
"The first six months of the year have been some of the most challenging the steel industry has ever experienced. Operating in such a difficult environment, I am pleased with the way in which ArcelorMittal has responded to adapt production, cut costs and strengthen our balance sheet.
In recent weeks we have started to see some initial signs of recovery, as a result of which we are now planning to re-start production at some facilities. Provided there are no further unexpected economic deteriorations, we should see continued gradual improvement throughout the second half of the year, with full recovery remaining slow and progressive."
Financial highlights (on the basis of IFRS5, amounts in US$ and Euros6 ):
(In millions of US dollars except earnings per share and shipments data)
Results US Dollars
Q2 2009 Q1 2009 Q2 2008 H1 2009 H1 2008
Shipments (Million MT)7 17.0 16.0 29.8 32.9 59.0
Sales 15,176 15,122 37,840 30,298 67,649
EBITDA8 1,221 883 8,046 2,104 13,090
Operating (loss) income9 (1,184) (1,483) 6,621 (2,667) 10,235
Net (loss) income (792) (1,063) 5,839 (1,855) 8,210
Basic (loss) earnings per share $(0.57) $(0.78) $4.20 $(1.34) $5.87
(In millions of Euros except earnings per share and shipments data)
Results Euros
Q2 2009 Q1 2009 Q2 2008 H1 2009 H1 2008
Shipments (Million MT) 17.0 16.0 29.8 32.9 59.0
Sales 11,142 11,606 24,222 22,734 44,201
EBITDA 896 678 5,150 1,579 8,553
Operating (loss) income (869) (1,138) 4,238 (2,001) 6,687
Net (loss) income (581) (816) 3,738 (1,392) 5,364
Basic (loss) earnings per share euro(0.42) euro(0.60) euro2.69 euro(1.01)