ArcelorMittal Reports Second Quarter 2012 And Half Year 2012 Results

Regulatory News:

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 six month periods ended June 30, 2012.

Highlights:

• Health and safety performance improved in 2Q 2012 with a LTIF rate ² of 0.8x as compared to 1.1x in 1Q 2012
• EBITDA ³ of $2.4 billion in 2Q 2012 (including positive $0.3 billion of gains on subsidiary divestments ⁴), compared to $2.0 billion in 1Q 2012 (including positive $0.2 billion from employee benefit changes ⁵); EBITDA of $4.4 billion reported in 1H 2012 as compared to $4.1 billion in 2H 2011
• Steel shipments of 21.7 Mt in 2Q 2012, a decrease of 2.5% as compared to 1Q 2012
• 2Q 2012 iron ore production of 14.4 Mt, up +9.9% YoY; 8.2 Mt shipped and reported at market price ⁶, up +17.4% YoY
• Net debt ⁷ reduced by $1.6 billion during 2Q 2012 to $22.0 billion, driven by improved free cash flow from operations of $1.1 billion, Skyline Steel divestment proceeds ⁴ of $0.7 billion and foreign exchange impacts
• Liquidity ¹⁵ decreased marginally to $14.8 billion from $15.2 billion at end 1Q 2012; average debt maturity at 6.4 years

Outlook and guidance:

• Group EBITDA per tonne for the 2H 2012 is expected to be similar to the underlying 1H 2012 level
• Steel shipments in 2H 2012 are expected to be lower than 1H 2012 levels due to normal seasonal factors
• Iron ore shipments remain on track to increase by approximately 10% in FY 2012 compared to FY 2011
• A further reduction in net debt is targeted by end 2012 but is dependent on further divestments. The Company remains committed to retaining its investment grade credit rating.
• 2012 capex is expected to be approximately $4.5 billion; ArcelorMittal Mines Canada expansion to 24mtpa ⁸ on track for ramp up during 1H 2013

Financial highlights (on the basis of IFRS ¹ , amounts in USD):

		Quarterly comparison						Semi-annual comparison
(USDm) unless otherwise shown		2Q 12		1Q 12		2Q 11		1H 12		2H 11		1H 11
Sales		$22,478		$22,703		$25,126		$45,181		$46,663		$47,310
EBITDA		2,449		1,972		3,413		$4,421		4,122		5,995
Operating income		1,101		663		2,252		$1,764		1,215		3,683
Income from discontinued operations		-		-		-		-		-		461
Net income / (loss)		959		11		1,535		970		(341)		2,604
Basic earnings / (loss) per share (USD)		0.62		0.01		0.99		0.63		(0.22)		1.68
Continuing operations
Own iron ore production (Mt)		14.4		13.2		13.1		27.6		29.2		24.9
Iron ore shipments at market price (Mt)		8.2		6.8		7.0		15.0		15.1		12.9
Crude steel production (Mt)		22.8		22.8		24.4		45.6		44.0		47.9
Steel shipments (Mt)		21.7		22.2		22.2		43.9		41.7		44.1
EBITDA/tonne (USD/t) 9		113		89		154		101		99		136

Commenting, Mr. Lakshmi N. Mittal, Chairman and CEO, ArcelorMittal, said:

“Market conditions in the first half have been very challenging, indeed more challenging than we had expected due to a combination of factors, not least the still unresolved crisis in the eurozone. Against this backdrop the company has delivered a creditable performance, continuing to make progress on the divestment of non-core assets, and reducing net debt below the half year target. Although the global economy remains fragile, we expect operating conditions to remain broadly similar in the second half. Europe remains our biggest concern and the severity of the situation is reflected in the performance of our European operations. Our focus throughout the remainder of the year remains on further improving competitiveness and reducing debt.”

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