Luxembourg, February 6, 2013 – ArcelorMittal (referred to as “ArcelorMittal” or the “Company”) (MT (New York, Amsterdam, Paris, Luxembourg), MTS (Madrid)), the world’s leading integrated steel and mining company, today announced results for the three and twelve-month periods ended December 31, 2012.
Highlights:
- Health and safety performance improved in 2012 with an annual LTIF rate of 1.0x as compared to 1.4x in 2011
- FY 2012 EBITDA of $7.1 billion (down 30% y-o-y); 4Q 2012 EBITDA of $1.3 billion includes $0.2 billion from sale of carbon dioxide (CO2) credits and $0.2 billion gain on Paul Wurth stake disposal, offset by negative $0.1 billion from employee benefit charges
- FY 2012 net loss of $3.7 billion includes $4.3 billion non-cash goodwill impairment and $1.3 billion charges related to Asset Optimization (of which $0.7 billion non-cash fixed asset impairments and $0.6 billion restructuring charges)
- FY 2012 steel shipments of 83.8Mt (down 2.3% y-o-y); 4Q 2012 steel shipments of 20Mt down 2.7% vs. 4Q 2011
- FY 2012 iron ore shipments of 54.4Mt (+5.4% y-o-y), of which 28.8Mt shipped at market prices (+2.6% y-o-y)
- Net debt decreased by $1.4 billion during 4Q 2012 to $21.8 billion as of December 31, 2012 (despite $0.2 billion negative foreign exchange effects) due largely to improved cash flow from operations of $2.9 billion
- Liquidity increased $1.1 billion to $14.5 billion at December 31, 2012, with an average debt maturity of 6.1 years
- Essential components of Asset Optimization have been announced
- Phase II expansion of Liberia from 4Mtpa direct shipped ore (“DSO”) to 15Mtpa concentrate approved by Board of Directors, with first concentrate production targeted in 2015
Outlook and guidance:
- The Company expects reported EBITDA to be higher in 2013 as compared to 2012
- Steel shipments are expected to increase by approximately 2-3% in 2013 as compared to 2012
- Per-tonne steel margins are expected to improve marginally with the full benefits of Asset Optimization expected in 2H 2013
- Marketable iron ore shipments are expected to increase by approximately 20%; ArcelorMittal Mines Canada expansion (AMMC) to 24mtpaon track for ramp up during 1H 2013
- 2013 capital expenditure is expected to be approximately $3.5 billion
- Approximately $5 billion of cash receipts expected in 1H 2013 from the capital raise in January 2013, and the announced agreed sale of a 15% stake in AMMC (assuming completion on schedule), should enable net debt to decline to approximately $17 billion by June 30, 2013
- As previously announced, the Board of Directors proposes a $0.20/share dividend in 2013 (vs $0.75/share in 2012) to be paid in July 2013
Financial highlights (on the basis of IFRS, amounts in USD):
Mr. Lakshmi N. Mittal, Chairman and CEO of ArcelorMittal, commented:
“2012 was a very difficult year for the steel industry, particularly in Europe where demand for steel fell a further 8.8%. During the year we took a number of important steps to address the challenges we face, including concentrating our operational footprint on our more competitive assets and reducing net debt. Although we expect the challenges to continue in 2013, largely due to the fragility of the European economy, we have recently seen some more positive indicators, which combined with the measures we have implemented to strengthen the business, are expected to support an improvement in the profitability of our steel business this year. Marketable iron ore shipments are also expected to increase by approximately 20% as a result of the expansion at ArcelorMittal Mines Canada.”