Steel shipments for 2Q 2012 were 6.8 million tonnes, a decrease of 9.2% as compared to 7.5 million tonnes for 1Q 2012. Steel shipments decreased due to lower demand in Europe, following the end of restocking, and lower exports.

Sales in the Flat Carbon Europe segment were $7.2 billion for 2Q 2012, a decrease of 6.4% as compared to $7.7 billion for 1Q 2012. Sales decreased primarily due to lower steel shipment volumes offset in part by higher average steel selling prices (+2.7%) in dollars despite euro currency depreciation.

EBITDA for 2Q 2012 was $381 million as compared to $130 million for 1Q 2012. Higher profitability was primarily driven by higher average selling prices and lower cost (benefit from lower average inventory cost) partially offset by lower steel shipment volumes. EBITDA for 2Q 2012 includes $136 million of DDH income recognized during the quarter as compared to $159 million DDH income for 1Q 2012.

Operating performance in 2Q 2012 was negatively impacted by restructuring costs totaling $176 million associated with the project to close two blast furnaces, sinter plant, steel shop and continuous casters in Liege, Belgium. Operating performance in 1Q 2012 was negatively impacted by restructuring costs totalling $56 million associated with separation schemes primarily relating to Polish entities as part of the implementation of the Asset Optimisation Plan.

Long Carbon Americas and Europe
(USDm) unless otherwise shown   2Q 12   1Q 12   2Q 11   1H 12   1H 11
Sales   $5,698   $5,763   $6,664   $11,461   $12,553
EBITDA   564   437   610   1,001   1,090
Operating income   333   110   358   443   568
Crude steel production (Mt)   5,885   5,785   6,414   11,670   12,473
Steel shipments (Mt)   5,839   5,738   6,167   11,577   12,039
Average steel selling price (US$/t)   885   910   973   898   938
EBITDA/tonne (US$/t)   97   76   99   86   91
Operating income /tonne (US$/t)   57   19   58   38   47

Long Carbon Americas and Europe crude steel production amounted to 5.9 million tonnes for 2Q 2012, an increase of 1.7% as compared to 5.8 million tonnes for 1Q 2012.

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