31/07/2015

ArcelorMittal, Luxembourg

ArcelorMittal reports results

ArcelorMittal, the world’s leading integrated steel and mining company, today announced results for the three and six month periods ended June 30, 2015. Highlights are: 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; 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.


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.”


ArcelorMittal, Luxembourg