ArcelorMittal reports third quarter 2014 and nine months 2014 results

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ArcelorMittal (referred to as “ArcelorMittal” or the “Company”) (MT (New York, Amsterdam, Paris, Luxembourg), MTS (Madrid)), the world’s leading integrated steel and mining company, today announced results1 for the three and nine month periods ended September 30, 2014

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07/11/2014 | Industrie, PMI et PME

This quarter’s results show the considerable improvement in our steel business which has more than offset the fall in the iron ore price. Europe has delivered another strong quarter, reflecting improved market conditions and the benefits of the optimisation efforts, the turnaround in ACIS is evident, and the NAFTA business has recovered after a disappointing first half. Based on today’s market conditions, I do not foresee a deterioration in our performance in the fourth quarter. As a result we are well placed to achieve full year EBITDA in excess of $7.0 billion

Mr. Lakshmi N. Mittal, ArcelorMittal Chairman and CEO

Highlights:

Health and safety performance improved in 3Q 2014 to an LTIF rate of 0.78x
EBITDA of $1.9 billion in 3Q 2014, an 11.2% improvement as compared to 3Q 2013 with notable improvements in Europe (+72.6%) and ACIS (+89.5%), offset by the negative impact of iron ore price on the Mining segment (-47.9%)
Steel shipments of 21.5 Mt in 3Q 2014, an increase of 3.9% as compared to 3Q 2013
3Q 2014 own iron ore production of 15.8 Mt, up 6% YoY; 10.0 Mt shipped and reported at market prices, up 6.3% YoY
Net debt of $17.8 billion as of September 30, 2014 as compared to $17.4 billion as of June 30, 2014 due largely to working capital investment of $0.6 billion and dividends of $0.4 billion, partially offset by forex effects ($0.5 billion)

Key developments:

Continued progress on ACIS turnaround evident through improved Kazakhstan and Ukraine performance
ArcelorMittal Tubarão blast furnace No.3 restarted July 2014
Sale of Gallatin 50/50 joint venture in US to Nucor completed for $770 million; proceeds received in October 2014
Mining: Liberia phase 1 expected production and shipment of 5Mt in 2014 unaffected by Ebola epidemic. Phase 2 currently progressing at a slower pace due to contractors declaring force majeure

Outlook and guidance framework:

Operating conditions remain generally favorable. The impact of declining iron ore price on Mining segment profitability is being offset by improvement in the steel business. The Company reiterates its guidance for EBITDA in excess of $7.0 billion in 2014
Net interest expense is now expected to be approximately $1.5 billion for 2014
Capital expenditure is now expected to be approximately $3.8 billion for 2014
The Company maintains its medium term net debt target of $15 billion