ArcelorMittal, the world's leading integrated steel and mining company, has announced results for the three and nine month periods ended September 30th 2012.
Highlights:
Health and safety performance: LTIF rate of 1.0x in 3Q 2012 as compared to 0.8x in 2Q 2012 and 1.5x in 3Q 2011
EBITDA of USD 1.3 billion in 3Q 2012 (including negative USD 0.1 billion from employee benefit charges) as compared to USD 2.4 billion in 2Q 2012 (which included positive USD 0.3 billion of gains on subsidiary divestments)
Steel shipments of 19.9 million tonnes in 3Q 2012, a decrease of 8.3% as compared to 2Q 2012 and 5.7% below 3Q 2011
14.3 million iron ore produced in 3Q 2012, up by 1.3% YoY; 7.1 million tonnes shipped and reported at market price, up by 6.7% YoY
Net debt increased by USD 1.2 billion during 3Q 2012 to USD 23.2 billion, driven by negative operating cash flow (including a USD 0.3 billion investment in working capital) and negative foreign exchange impacts partially offset by proceeds from asset disposal and an issuance of perpetual securities
Liquidity of USD 13.4 billion at end 3Q 2012, with an average debt maturity of 6.2 years
Asset optimization plan progressing: Closure of liquid phase at Liege, Belgium agreed; announced intention to launch a project to permanently close the liquid phase of Florange in France
Management gains plan completed with USD 4.8 billion savings achieved ahead of schedule
Financial highlights:
| Q3 '12 | Q2 '12 | QoQ | Q3 '11 | YoY | |
| Sales | 19,723 | 22,478 | -12.3 | 24,214 | -18.5 |
| EBITDA | 1,336 | 2,449 | -45.4 | 2,408 | -44.5 |
| Operating income | -49 | 1,101 | -104.5 | 1,168 | -104.2 |
| Income from discontinued operations | - | - | NA | - | NA |
| Net income | -709 | 959 | -173.9 | 659 | -207.6 |
| Basic EPA (USD) | -0.46 | 0.62 | -174.2 | 0.43 | -207.0 |
In USD million
Continuing operations
| Q3 '12 | Q2 '12 | QoQ | Q3 '11 | YoY | |
| Own iron ore production (Mt) | 14.3 | 14.4 | -0.7 | 14.1 | 1.4 |
| Iron ore shipments at market price (Mt) | 7.1 | 8.2 | -13.4 | 6.7 | 6.0 |
| Crude steel production (Mt) | 21.9 | 22.8 | -3.9 | 22.4 | -2.2 |
| Steel shipments (Mt) | 19.9 | 21.7 | -8.3 | 21.1 | -5.7 |
| EBITDA per tonne (USD/t) | 67 | 113 | -40.7 | 114 | -41.2 |
In USD million
| YTD '12 | YTD '11 | YoY | |
| Sales | 64,904 | 71,524 | -9.3 |
| EBITDA | 5,757 | 8,403 | -31.5 |
| Operating income | 1,715 | 4,851 | -64.6 |
| Income from discontinued operations | - | 461 | NA |
| Net income | 261 | 3,263 | -92.0 |
| Basic EPA (USD) | 0.17 | 2.11 | -91.9 |
In USD million
| Continuing operations | YTD '12 | YTD '11 | YoY |
| Own iron ore production (Mt) | 41.9 | 39 | 7.4 |
| Iron ore shipments at market price (Mt) | 22.1 | 19.6 | 12.8 |
| Crude steel production (Mt) | 67.4 | 70.2 | -4.0 |
| Steel shipments (Mt) | 63.8 | 65.2 | -2.1 |
| EBITDA per tonne (USD/t) | 90 | 129 | -30.2 |
In USD million
Mr LN Mittal chairman & CEO of ArcelorMittal said that "The already fragile global economy was further impacted in the third quarter of 2012 by the slowdown in China. This resulted in very challenging operating conditions for ArcelorMittal, which are expected to continue in the fourth quarter. Against this backdrop, the company is focused on delivering its plan of asset optimization, net debt reduction and productivity and efficiency improvements."
Source - ArcelorMittal
(www.steelguru.com)
