Luxembourg, July 31, 2015 – 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[1] for the three and six month periods ended June 30, 2015.
Highlights:
- Health and safety: LTIF rate of 0.68x in 2Q 2015, lower as compared to 0.88x in 1Q 2015 and 0.87x in 2Q 2014
- EBITDA of $1.4 billion in 2Q 2015, stable as compared to 1Q 2015[2]
- Net income of $0.2 billion in 2Q 2015 as compared to a net loss of $0.7 billion in 1Q 2015
- Steel shipments of 22.2Mt in 2Q 2015, an increase of 3.4% YoY
- 16.4Mt own iron ore production as compared to 16.6Mt in 2Q 2014; 10.8Mt shipped and reported at market prices, an increase of 2.7% as compared to 10.5Mt in 2Q 2014
- Iron ore unit cash costs reduced by 14% YoY; FY 2015 cost reduction target at 15%
- Net debt of $16.6 billion as of June 30, 2015, stable as compared to March 31, 2015 mainly due to positive free cash flow of $0.5 billion offset by negative forex ($0.2 billion) and dividends ($0.3 billion); Net debt lower by $0.9 billion YoY
Key developments:
- Record health and safety LTIF performance in 2Q 2015
- Record 7Mt iron ore shipped from flagship AMMC operations in Canada during 2Q 2015
- MOU signed with Sail for India automotive steel joint venture
- Investment approved to increase HRC and HDG capacity in Krakow, Poland
- Signed intention to construct Europe’s first-ever commercial scale production facility at Ghent, Belgium to create bioethanol from waste gases produced during the steelmaking process
Outlook and guidance:
- The Company’s guidance remains unchanged and continues to expect: 2015 EBITDA within the range of $6.0 – $7.0 billion; 2015 capital expenditures of approximately $3.0 billion; and 2015 net interest expense of approximately $1.4 billion
- The Company continues to expect positive free cash flow in 2015 and to achieve progress toward the medium term net debt target of $15 billion
Financial highlights (on the basis of IFRS[1]):
| (USDm) unless otherwise shown | 2Q 15 | 1Q 15 | 2Q 14 | 1H 15 | 1H 14 |
|---|---|---|---|---|---|
| Sales | 16,890 | 17,118 | 20,704 | 34,008 | 40,492 |
| EBITDA | 1,399 | 1,378 | 1,763 | 2,777 | 3,517 |
| Operating income | 579 | 571 | 832 | 1,150 | 1,506 |
| Net income / (loss) attributable to equity holders of the parent | 179 | (728) | 52 | (549) | (153) |
| Basic income / (loss) per share (US$) | 0.10 | (0.41) | 0.03 | (0.31) | (0.09) |
| Own iron ore production (Mt) | 16.4 | 15.6 | 16.6 | 31.9 | 31.4 |
| Iron ore shipped at market price (Mt) | 10.8 | 9.4 | 10.5 | 20.1 | 19.8 |
| Crude steel production (Mt) | 24.0 | 23.7 | 23.1 | 47.8 | 46.1 |
| Steel shipments (Mt) | 22.2 | 21.6 | 21.5 | 43.8 | 42.4 |
| EBITDA/tonne (US$/t) | 63 | 64 | 82 | 63 | 83 |
| Steel-only EBITDA/tonne (US$/t) | 58 | 59 | 64 | 58 | 64 |
Commenting, Mr. Lakshmi N. Mittal, ArcelorMittal Chairman and CEO, said:
“Despite continued pressure on both steel and iron-ore prices, we have delivered a consistent set of operating results compared with the first quarter. Europe continues to be a bright spot, with EBITDA again improving by 10.5% compared with the first quarter of 2015. Mining has also performed robustly against the backdrop of a lower iron-ore price, with ArcelorMittal Mines Canada reporting record shipment levels and improved costs. We remain concerned by the high level of imports. Whilst we are somewhat encouraged by recent actions on potential trade defence measures from both the US and Europe, we are also taking action to adapt our own business. More positively, even against such a challenging backdrop, we have delivered a small net income for the second quarter, reduced net debt year on year and we still expect to be cash flow positive for the year.”
[1]The financial information in this press release has been prepared consistently with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). While the interim financial information included in this announcement has been prepared in accordance with IFRS applicable to interim periods, this announcement does not contain sufficient information to constitute an interim financial report as defined in International Accounting Standards 34, “Interim Financial Reporting”. The numbers in this press release have not been audited. The financial information and certain other information presented in a number of tables in this press release have been rounded to the nearest whole number or the nearest decimal. Therefore, the sum of the numbers in a column may not conform exactly to the total figure given for that column. In addition, certain percentages presented in the tables in this press release reflect calculations based upon the underlying information prior to rounding and, accordingly, may not conform exactly to the percentages that would be derived if the relevant calculations were based upon the rounded numbers. This press release also includes certain non-GAAP financial measures.
[2]EBITDA in 1Q 2015 of $1,378 million was negatively impacted by a $69 million provision primarily related to onerous hot rolled and cold rolled contracts in the US.