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ArcelorMittal Reports Second Quarter 2012 And Half Year 2012 Results

Income from equity method investments and other income in 2Q 2012 was $121 million, as compared to a loss of $14 million in 1Q 2012 and income of $289 million for 2Q 2011. During 1Q 2012 the net impact from the partial sale of the Company’s stake in Erdemir and the agreed sale of Enovos was a loss of $85 million.

Net interest expense (including interest expense and interest income) was stable at $456 million for 2Q 2012 as against $461 million for 1Q 2012 and $457 million for 2Q 2011.

Due to exchange rate effects, foreign exchange and other net financing costs were $32 million for 2Q 2012 as compared to costs of $362 million for 1Q 2012 and costs of $447 million for 2Q 2011. Foreign exchange and other net financing costs for 2Q 2012 were positively impacted by significant foreign exchange income primarily due to 6% appreciation of the US dollar against the Euro compared to a 3% depreciation in the previous quarter.

ArcelorMittal recorded an income tax benefit of $219 million for 2Q 2012, as compared to a benefit of $190 million for 1Q 2012 and an income tax expense of $61 million in 2Q 2011.

Loss attributable to non-controlling interests for 2Q 2012 was $6 million as compared with gain of $5 million for 1Q 2012 and gain of $41 million for 2Q 2011.

Capital expenditure projects

The following tables summarize the Company’s principal growth and optimization projects involving significant capital expenditures.

Completed Projects in Most Recent 4 Quarters
Segment   Site   Project   Capacity / particulars   Actual Completion
Mining   Liberia mines   Greenfield Liberia   Iron ore production of 4mt / year (Phase 1)   3Q 11 (a)

Ongoing (b) Projects
Segment   Site   Project   Capacity / particulars   Forecasted Completion
Mining   Andrade Mines (Brazil)   Andrade expansion   Increase iron ore production to 3.5mt / year   4Q 2012
Mining   ArcelorMittal Mines Canada   Replacement of spirals for enrichment   Increase iron ore production by 0.8mt / year   2013
Mining   ArcelorMittal Mines Canada   Expansion project   Increase concentrator capacity by 8mt/year (16 to 24mt / year)   2013
FCA   ArcelorMittal Dofasco (Canada)   Optimization of galvanizing and galvalume operations   Optimize cost and increase galvalume production by 0.1mt / year   On hold
FCA   ArcelorMittal Vega Do Sul (Brazil)   Expansion project   Increase HDG capacity by 0.6mt / year and CR capacity by 0.7mt / year   On hold
LCA   Monlevade (Brazil)   Wire rod production expansion   Increase in capacity of finished products by 1.15mt / year   On hold

a) Iron ore mining production commenced in 2011 with 1 million tonnes produced. The targeted iron ore production in 2012 is 4 million tonnes. As previously announced, the Company is considering a Phase 2 expansion that would lead to annual production of 15 million tonnes by 2015. This would require substantial investment in a concentrator, the approval process of which remains in the final stages.

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