November, 2013 – ArcelorMittal today announced results for its Flat Carbon Europe segment for the third quarter of 2013.
The segment recorded an operating loss of €131m for Q3 2013 which excludes interest and tax costs. This is compared with an operating loss of €151m in Q2 2013 which included restructuring costs totalling €119m, mainly associated with the asset optimisation of the liquid phase in Florange, France.
The segment’s crude steel production decreased 0.6% to 7.4 million tonnes in Q3 2013, compared with Q2 2013 (7.5 million tonnes)
Steel shipments in Q3 2013 were 6.6 million tonnes, a decrease of 6.9% compared with 7.1 million tonnes in Q2 2013 due to normal seasonal demand patterns
Sales in the Flat Carbon Europe segment decreased to €4.8bn in Q3 2013 compared with €5.3bn in Q2 2013, due to lower steel shipment volumes and lower average steel selling prices (-4.6%).
Capital expenditure in the segment for Q3 2013 was €108m.
The €131m operating loss in Q3 2013 was mainly due to the normal seasonal downturn as well as a negative price-cost squeeze, meaning lower sales prices were not offset by lower input costs.
Ebitda for the quarter was €146m, compared with €152m for Q3 2012. Excluding a one-time €100m gain made in Q3 2012 from the Dynamic Delta Hedge, Ebitda improved on an underlying basis, by €14 per tonne.
Commenting, Robrecht Himpe, CEO of Flat Carbon Europe and member of the ArcelorMittal management committee, said: “The operating environment continues to be challenging and our third quarter results were impacted by the normal seasonal demand patterns, as well as a negative price-cost squeeze. We are however seeing improvement in the underlying performance of the business, due to the benefits of asset optimisation and our cost improvement programme.”

Eurozone GDP will continue to grow in the second half of 2013 as recessionary pressures ease in hard-hit countries such as Greece and Spain. While Q2 growth indicates reduced risks in the Eurozone, growth will be weak and uneven due to high unemployment, tight credit - particularly in the south of Europe - and while deleveraging is still ongoing. Competitiveness has improved though, particularly in Spain, which returned to growth in Q3 due to falling unit labour costs. This in turn has led to strong export growth. Eurozone GDP growth is expected to be negative in 2013, at -0.4%, but rising to 1% in 2014.
Automotive sales rebounded by 5% year-on-year in September, which was the biggest gain in the industry since August 2011. This was led by a surge in growth in the UK market (12% year-on-year) and Spain (28% year-on-year).
Eurozone manufacturing PMI, which rose above 50 in July of this year for the first time in two years, continues to signal growth, as it remains at 51.1 for September.

Luxembourg, November 7, 2013 - 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 nine month periods ended September 30, 2013.
Highlights[2]:
Health and safety performance improved in 3Q 2013 with a LTIF rate[3] of 0.8x as compared to 0.9x in 2Q 2013
EBITDA[4] of $1.7 billion in 3Q 2013, 24% higher than underlying EBITDA in 3Q 2012[5]
Steel shipments of 21.1 Mt in 3Q 2013, an increase of 6% as compared to 3Q 2012
3Q 2013 own iron ore production of 14.9 Mt, up 4.5% YoY; 9.4 Mt shipped and reported at market price[6] , up 32% YoY
As anticipated, net debt[7] increased from $16.2 billion as of June 30, 2013 to $17.8 billion as of September 30, 2013, largely driven by investment in operating working capital ($0.8 billion) and dividends paid ($0.4 billion)
Net interest expense reduced by $62 million (13%) in 3Q 2013 as compared to 2Q 2013 primarily due to lower gross debt
$0.8 billion annualized management gains achieved during 9M 2013, in line with plan to achieve $3 billion of cost improvement by the end of 2015
The ramp-up of expanded capacity at AMMC remains on track to achieve a run-rate of 24 Mt by year-end 2013
Key strategic developments:
Resolution of long-term Kumba dispute: Sishen iron ore supply agreement secured on cost-plus terms
Investment plan to double capacity at ArcelorMittal Annaba following stake dilution to 49% (from 70%)[7]
Selective steel capital expenditure projects restarted to support development of franchise businesses
Outlook and guidance:
In line with our guidance framework, underlying profitability is still expected to improve in 2013, driven by three factors: a) a 1-2% increase in steel shipments; b) an approximate 20% increase in marketable iron ore shipments; and c) the benefits realized from Asset Optimization and Management Gains initiatives
The Company still expects 2013 EBITDA to be greater than $6.5 billion
Due to improved operating cash flows and proceeds from already announced disposals[8] , net debt is expected to decrease in 4Q 2013 to approximately $17 billion; the $15 billion medium term net debt target is unchanged
2013 capital expenditure is still expected to be approximately $3.7 billion
Financial highlights (on the basis of IFRS[1], amounts in USD):
Quarterly comparison
Year-to-date comparison
(USDm) unless otherwise shown
3Q 132Q 133Q 12[2]9M 139M 12[2]
Sales19,64320,19719,72359,59264,904
EBITDA1,7131,7001,4454,9786,122
Operating income477352551,2332,066
Net income / (loss)(193)(780)(652)(1,318)456
Basic earnings / (loss) per share (USD)(0.12)(0.44)(0.42)(0.77)0.29
Own iron ore production (Mt)14.915.014.343.041.9
Iron ore shipments at market price (Mt)9.48.27.124.922.1
Crude steel production (Mt)23.322.521.968.267.4
Steel shipments (Mt)21.121.319.963.463.8
EBITDA/tonne (USD/t)[9] 81 80 73 79 96
Commenting, Mr. Lakshmi N. Mittal, ArcelorMittal Chairman and CEO, said:
“After a weak first half, we have seen third quarter performance improve year-on-year, positively impacted by our cost optimisation efforts and the increased shipments from our mining expansion. We believe that the bottom of the cycle is behind us and expect second half EBITDA, usually comparably weaker, to be at least equal to the first. Although operating conditions remain challenging, as economic indicators are improving we are cautiously optimistic about the prospects for 2014.”