OREANDA-NEWS. July 31, 2012. ArcelorMittal (referred to as “ArcelorMittal” or the “Company”) (MT (New York, Amsterdam, Paris, Luxembourg), MTS (Madrid)), the world’s leading steel company, announced results for the three and six month periods ended June 30, 2012, reported the press-centre of ArcelorMittal.

Highlights:
Health and safety performance improved in 2Q 2012 with a LTIF rate of 0.8x as compared to 1.1x in 1Q 2012

EBITDA of USD 2.4 billion in 2Q 2012 (including positive USD 0.3 billion of gains on subsidiary divestments, compared to USD 2.0 billion in 1Q 2012 (including positive USD 0.2 billion from employee benefit changes; EBITDA of USD 4.4 billion reported in 1H 2012 as compared to USD 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, up +17.4% YoY

Net debt reduced by USD 1.6 billion during 2Q 2012 to USD 22.0 billion, driven by improved free cash flow from operations of USD 1.1 billion, Skyline Steel divestment proceeds of USD 0.7 billion and foreign exchange impacts

Liquidity decreased marginally to USD 14.8 billion from USD 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 USD 4.5 billion; ArcelorMittal Mines Canada expansion to 24mtpa on track for ramp up during 1H 2013

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.”