Exhibit No.
|
Description
|
|
Exhibit 99.1
|
ArcelorMittal reports results for the three months and nine months ended September 30, 2011
|
By: | /s/ Henk Scheffer | ||
Name: |
Henk Scheffer
|
||
Title: |
Company Secretary
|
Exhibit No.
|
Description
|
|
Exhibit 99.1
|
ArcelorMittal reports results for the three months and nine months ended September 30, 2011
|
Highlights:
|
|
● |
Health and safety lost time injury frequency rate2 remained constant at 1.5x as compared to the three months ended June 30, 2011
|
● |
Operating income of $1.2 billion during the three months ended September 30, 2011, an increase of 13.6% compared to the three months ended September 30, 2010; Operating income of $4.9 billion during the nine months ended September 30, 2011, an increase of 51.2% compared to the nine months ended September 30, 2010
|
● |
Steel shipments of 21.1 Mt during the three months ended September 30, 2011, 2.7% higher than during the three months ended September 30, 2010
|
● |
Operating income per tonne of $55 for the three months ended September 30, 2011, 10.4% higher than for the three months ended September 30, 2010
|
● |
Own iron ore production of 14.1 Mt during the three months ended September 30, 2011, up 8.4% compared to the three months ended September 30, 2010; 6.7 Mt market price3 iron ore shipped (an increase of 9.6% compared to the three months ended September 30, 2010)
|
● |
Long-term debt, plus short-term debt, less cash and cash equivalents, restricted cash and short-term investments of $24.9 billion at September 30, 2011 as compared to $25.0 billion at June 30, 2011
|
Performance and industrial plan:
|
|
● |
$3.8 billion of annualized sustainable cost reduction achieved by the end of the three months ended September 30, 2011; on track to reach $4.8 billion by end of 2012
|
● |
New $1 billion asset optimization plan launched to generate sustainable improvement in operating income plus depreciation and impairment; expecting to close 2 blast furnaces, sinter plant, steel shop and continuous casters in Liege, Belgium4
|
● |
Liberia iron ore phase 1 complete, with 2011 targeted production of 1 million metric tonnes, increasing to 4 million tonnes in 2012; phase 2 expansion to 15 million metric tonnes is in final decision phase
|
● |
ArcelorMittal Mines Canada expansion project on track to increase iron ore capacity from 16 Mt to 24 Mt by 2013
|
Outlook and guidance:
|
|
● |
Operating income plus depreciation and impairment for the half-year ended December 31, 2011 is expected to be above the comparable figure for the half-year ended December 31, 2010
|
● |
Steel shipments in the three months ended December 31, 2011 are expected to be lower than the levels for the three months ended September 30, 2011, reflecting customers’ “wait and see” approach
|
● |
On track to increase fiscal year 2011 own iron ore and coal production by 10% and 20%, respectively, as compared to fiscal year 2010
|
● |
Long-term debt, plus short-term debt, less cash and cash equivalents, restricted cash and short-term investments at year-end is expected to be higher than September 30, 2011 levels primarily due to the temporary investment in Macarthur
|
● | Focus on core growth capex; full year 2011 capex therefore is expected to be below previous target of $5.5 billion |
In millions of USD unless otherwise shown
|
Three months ended September 30, 2011
|
Three months ended
June 30, 2011
|
Three months ended September 30, 2010
|
Nine months ended September 30, 2011
|
Nine months ended September 30, 2010
|
Sales
|
$24,214
|
$25,126
|
$19,744
|
$71,524
|
$57,326
|
Operating income
|
1,168
|
2,252
|
1,028
|
4,851
|
3,208
|
Income from discontinued operations
|
-
|
-
|
38
|
461
|
217
|
Net income attributable to owners of the parent
|
659
|
1,535
|
1,350
|
3,263
|
3,696
|
Basic earnings per share (USD)
|
0.43
|
0.99
|
0.89
|
2.11
|
2.45
|
Continuing operations
|
|||||
Own iron ore production (Mt)
|
14.1
|
13.1
|
13.0
|
39.0
|
36.4
|
Iron ore shipped internally and externally at market price (Mt) 3
|
6.7
|
7.0
|
6.1
|
19.6
|
18.4
|
Crude steel production (Mt)
|
22.4
|
24.4
|
22.2
|
70.2
|
69.0
|
Steel shipments (Mt)
|
21.1
|
22.2
|
20.5
|
65.2
|
63.8
|
Operating income/tonne (US$/tonne)
|
55
|
101
|
50
|
74
|
50
|
Own personnel and contractors - Frequency rate
|
|||||
Lost time injury frequency rate
|
Three months ended September 30, 2011
|
Three months ended
June 30, 2011
|
Three months ended September 30, 2010
|
Nine months ended September 30, 2011
|
Nine months ended September 30, 2010
|
Total Mines
|
1.2
|
1.6
|
1.7
|
1.3
|
1.7
|
Lost time injury frequency rate
|
Three months ended September 30, 2011
|
Three months ended
June 30, 2011
|
Three months ended September 30, 2010
|
Nine months ended September 30, 2011
|
Nine months ended September 30, 2010
|
Flat Carbon Americas
|
1.7
|
2.0
|
1.7
|
1.9
|
1.8
|
Flat Carbon Europe
|
1.6
|
1.5
|
2.1
|
1.7
|
2.3
|
Long Carbon Americas and Europe
|
1.7
|
1.6
|
2.3
|
1.5
|
2.2
|
Asia Africa and CIS
|
0.9
|
0.5
|
1.2
|
0.7
|
0.9
|
Distribution Solutions
|
4.4
|
3.2
|
2.3
|
3.7
|
2.7
|
Total Steel
|
1.6
|
1.5
|
1.9
|
1.5
|
1.9
|
Lost time injury frequency rate
|
Three months ended September 30, 2011
|
Three months ended
June 30, 2011
|
Three months ended September 30, 2010
|
Nine months ended September 30, 2011
|
Nine months ended September 30, 2010
|
Total (Steel and Mines)
|
1.5
|
1.5
|
1.9
|
1.5
|
1.9
|
o
|
ArcelorMittal secured entry to the Dow Jones Sustainability World Index (DJSI World). The Dow Jones Sustainability Index tracks the financial performance of the leading sustainability-driven companies worldwide. Securing recognition from this benchmarking index for the second time demonstrates ArcelorMittal’s commitment towards delivering safe, sustainable steel. ArcelorMittal remains a member of the two major sustainability and corporate responsibility indices: the DJSI World and the FTSE4Good Index series.
|
o
|
A report jointly issued by ArcelorMittal, the European Metalworkers’ Federation, the International Federation of Metalworkers and United Steel Workers examines how the Company has worked together with unions throughout the world to achieve better safety results. The report concludes that the joint global Health & Safety Committee has helped build a positive workplace culture and improved collaboration and coordination between unions and management locally as well as globally.
|
Segment
|
Site
|
Project
|
Capacity / particulars
|
Actual
Completion
|
FCE
|
ArcelorMittal Dunkerque (France)
|
Modernization of continuous caster No.21
|
Slab capacity increase by 0.8mt / year
|
Fourth quarter 2010
|
Mining
|
Princeton Coal (USA)
|
Underground mine expansion
|
Capacity increase by 0.7mt / year
|
First quarter 2011
|
Mining
|
Liberia mines
|
Greenfield Liberia
|
Iron ore production of 4mt / year (Phase 1)
|
Third quarter 2011(b)
|
Segment
|
Site
|
Project
|
Capacity / particulars
|
Forecasted
Completion
|
Mining
|
Andrade Mines (Brazil)
|
Andrade expansion
|
Increase iron ore production to 3.5mt / year
|
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/y)
|
2013
|
FCA
|
ArcelorMittal Dofasco (Canada)
|
Optimization of galvanizing and galvalume operations
|
Optimize cost and increase galvalume production by 0.1mt / year
|
To be determined
|
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
|
Country
|
Site
|
Project
|
Capacity / particulars
|
Forecasted
completion
|
Saudi Arabia
|
Al-Jubail
|
Seamless tube mill
|
Capacity of 0.6mt / year of seamless tube
|
2013(c)
|
China
|
Hunan Province
|
VAMA Auto Steel JV
|
Capacity of 1.2mt / year for the auto market
|
2013
|
China
|
Hunan Province
|
VAME Electrical Steel JV
|
Capacity of 0.3mt / year of electrical steel
|
2013
|
South Africa
|
Kalahari Basin
|
Manganese mine and sinter plant
|
Capacity of 2.4mt / year of manganese sinter product
|
2013
|
a)
|
Ongoing projects refer to projects for which construction has begun and exclude various projects that are under development.
|
b)
|
Iron ore mining production has commenced. 2011 iron ore production target of 1 million tonnes increasing to 4 million tonnes in 2012. The expansion to 15 million tonnes with forecast completion by 2015 (Phase 2) will require investment in a concentrator which is currently in the final stage of approval.
|
c)
|
Saudi Arabia project delay from 2012 to 2013 primarily due to construction delays
|
In millions of USD unless otherwise shown
|
Three months ended September 30, 2011
|
Three months ended
June 30, 2011
|
Three months ended September 30, 2010
|
Nine months ended September 30, 2011
|
Nine months ended September 30, 2010
|
Sales
|
$5,499
|
$5,567
|
$4,394
|
$16,005
|
$13,111
|
Operating income
|
193
|
697
|
166
|
1,197
|
758
|
Crude steel production ('000t)
|
5,866
|
6,277
|
5,932
|
18,206
|
17,465
|
Steel shipments ('000t)
|
5,708
|
5,520
|
4,979
|
16,791
|
15,596
|
Average steel selling price (US$/t)
|
910
|
961
|
826
|
900
|
786
|
Operating income /tonne (US$/t)
|
34
|
126
|
33
|
71
|
49
|
In millions of USD unless otherwise shown
|
Three months ended September 30, 2011
|
Three months ended
June 30, 2011
|
Three months ended September 30, 2010
|
Nine months ended September 30, 2011
|
Nine months ended September 30, 2010
|
Sales
|
$7,696
|
$8,551
|
$6,268
|
$24,059
|
$18,733
|
Operating income / (loss)
|
(106)
|
245
|
80
|
245
|
392
|
Crude steel production ('000t)
|
7,390
|
7,870
|
7,107
|
22,891
|
23,020
|
Steel shipments ('000t)
|
6,385
|
7,166
|
6,521
|
20,935
|
20,917
|
Average steel selling price (US$/t)
|
1,021
|
1,026
|
855
|
990
|
794
|
Operating income/(loss) /tonne (US$/t)
|
(17)
|
34
|
12
|
12
|
19
|
In millions of USD unless otherwise shown
|
Three months ended September 30, 2011
|
Three months ended
June 30, 2011
|
Three months ended September 30, 2010
|
Nine months ended September 30, 2011
|
Nine months ended September 30, 2010
|
Sales
|
$6,676
|
$6,664
|
$5,514
|
$19,229
|
$15,748
|
Operating income
|
185
|
358
|
339
|
753
|
976
|
Crude steel production ('000t)
|
5,611
|
6,414
|
5,472
|
18,084
|
17,225
|
Steel shipments ('000t)
|
5,984
|
6,167
|
5,772
|
18,023
|
17,450
|
Average steel selling price (US$/t)
|
967
|
973
|
832
|
948
|
790
|
Operating income /tonne (US$/t)
|
31
|
58
|
59
|
42
|
56
|
In millions of USD unless otherwise shown
|
Three months ended September 30, 2011
|
Three months ended
June 30, 2011
|
Three months ended September 30, 2010
|
Nine months ended September 30, 2011
|
Nine months ended September 30, 2010
|
Sales
|
$2,619
|
$2,857
|
$2,511
|
$8,046
|
$7,162
|
Operating income
|
162
|
341
|
161
|
628
|
589
|
Crude steel production ('000t)
|
3,493
|
3,830
|
3,726
|
11,029
|
11,295
|
Steel shipments ('000t)
|
3,005
|
3,304
|
3,261
|
9,451
|
9,874
|
Average steel selling price (US$/t)
|
771
|
768
|
630
|
743
|
604
|
Operating income /tonne (US$/t)
|
54
|
103
|
49
|
66
|
60
|
In millions of USD unless otherwise shown
|
Three months ended September 30, 2011
|
Three months ended
June 30, 2011
|
Three months ended September 30, 2010
|
Nine months ended September 30, 2011
|
Nine months ended September 30, 2010
|
Sales
|
$4,899
|
$5,019
|
$3,977
|
$14,179
|
$11,468
|
Operating income
|
8
|
69
|
82
|
161
|
230
|
Steel shipments ('000t)
|
4,607
|
4,594
|
4,467
|
13,403
|
13,422
|
Average steel selling price (US$/t)
|
1,010
|
1,040
|
855
|
1,009
|
820
|
In millions of USD unless otherwise shown
|
Three months ended September 30, 2011
|
Three months ended
June 30, 2011
|
Three months ended September 30, 2010
|
Nine months ended September 30, 2011
|
Nine months ended September 30, 2010
|
Sales7
|
$1,678
|
$1,657
|
$1,181
|
$4,463
|
$3,163
|
Operating income
|
725
|
718
|
617
|
1,936
|
1,248
|
Own iron ore production (a) (Mt)
|
14.1
|
13.1
|
13.0
|
39.0
|
36.4
|
Iron ore shipped externally and internally at market price (b) (Mt)
|
6.7
|
7.0
|
6.1
|
19.6
|
18.4
|
Iron ore shipped internally at cost-plus (b) (Mt)
|
6.9
|
6.2
|
6.1
|
16.8
|
15.7
|
Total iron ore shipped externally and internally (b) (Mt)
|
13.5
|
13.2
|
12.2
|
36.3
|
34.2
|
Own coal production(a) (Mt)
|
2.1
|
2.1
|
1.8
|
6.1
|
5.2
|
Coal shipped externally and internally at market price(b) (Mt)
|
1.2
|
1.3
|
0.9
|
3.6
|
2.6
|
Coal shipped internally at cost-plus(b) (Mt)
|
0.8
|
0.8
|
0.8
|
2.5
|
2.3
|
Total coal shipped externally and internally (b) (Mt)
|
2.1
|
2.1
|
1.7
|
6.1
|
4.9
|
·
|
On October 25, 2011, ArcelorMittal provided notice to Peabody Energy that, in accordance with the Co-Operation and Contribution Agreement between the two companies, following its acceptance of PEAMCoal Ltd’s offer for Macarthur Coal Ltd, it has terminated the Co-Operation and Contribution Agreement as provided for therein. ArcelorMittal will remain a shareholder in PEAMCoal until the termination arrangements are completed which is expected to be in approximately 90 days’ time. In taking this decision, ArcelorMittal has determined that it would no longer be appropriate to allocate substantial capital to the acquisition of a non-controlling, minority business interest. This is in accordance with the rights that ArcelorMittal originally negotiated with Peabody at the time the Co-Operation and Contribution Agreement was concluded.
|
·
|
On September 30, 2011, ArcelorMittal extended to May 2015 the maturity of its $4 billion revolving credit facility that was due to expire in May 2013.
|
·
|
On September 28, 2011, ArcelorMittal announced the increase by $250 million of its $750 million privately placed mandatorily convertible bond (MCB) issued on December 28, 2009 by one of its wholly-owned Luxembourg subsidiaries. This amendment to the MCB, which is mandatorily convertible into preferred shares of such subsidiary, was executed on September 27, 2011. The other main features of the MCB remain unchanged. The bond was placed privately with a Luxembourg affiliate of Credit Agricole Corporate and Investment Bank and is not listed.
|
·
|
On August 1, 2011, ArcelorMittal published its Half-Year Report for the six month period ended June 30, 2011. In addition, ArcelorMittal filed with the U.S. Securities and Exchange Commission (www.sec.gov) a recast of its 2008-2010 Financial Statements, Business description and Management’s Discussion and Analysis to reflect the fact that its mining business is being reported as a segment since January 1, 2011.
|
September 30,
|
June 30,
|
December 31,
|
||
In millions of U.S. dollars
|
2011
|
2011
|
201010
|
|
ASSETS
|
||||
Cash and cash equivalents including restricted cash
|
$2,800
|
$3,205
|
$6,289
|
|
Trade accounts receivable and other
|
8,194
|
8,625
|
5,725
|
|
Inventories
|
23,397
|
23,920
|
19,583
|
|
Prepaid expenses and other current assets
|
4,246
|
4,376
|
4,160
|
|
Assets held for distribution
|
-
|
-
|
6,918
|
|
Total Current Assets
|
38,637
|
40,126
|
42,675
|
|
Goodwill and intangible assets
|
14,683
|
15,134
|
14,373
|
|
Property, plant and equipment
|
54,052
|
56,124
|
54,344
|
|
Investments in affiliates and joint ventures and other assets
|
19,956
|
22,135
|
19,512
|
|
Total Assets
|
$127,328
|
$133,519
|
$130,904
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||
Short-term debt and current portion of long-term debt
|
$3,626
|
$3,688
|
$6,716
|
|
Trade accounts payable and other
|
13,772
|
14,864
|
13,256
|
|
Accrued expenses and other current liabilities
|
8,527
|
8,545
|
8,714
|
|
Liabilities held for distribution
|
-
|
-
|
2,037
|
|
Total Current Liabilities
|
25,925
|
27,097
|
30,723
|
|
Long-term debt, net of current portion
|
24,061
|
24,530
|
19,292
|
|
Deferred tax liabilities
|
3,678
|
4,010
|
4,006
|
|
Other long-term liabilities
|
10,288
|
11,381
|
10,783
|
|
Total Liabilities
|
63,952
|
67,018
|
64,804
|
|
Equity attributable to the equity holders of the parent
|
59,586
|
62,615
|
62,430
|
|
Non–controlling interests
|
3,790
|
3,886
|
3,670
|
|
Total Equity
|
63,376
|
66,501
|
66,100
|
|
Total Liabilities and Shareholders’ Equity
|
$127,328
|
$133,519
|
$130,904
|
Three months ended
|
Nine months ended
|
||||
September 30,
|
June 30,
|
September 30,
|
September 30,
|
September 30,
|
|
In millions of U.S. dollars
|
2011
|
2011
|
2010
|
2011
|
2010
|
Sales
|
$24,214
|
$25,126
|
$19,744
|
$71,524
|
$57,326
|
Depreciation
|
(1,155)
|
(1,161)
|
(1,108)
|
(3,449)
|
(3,320)
|
Impairment
|
(85)
|
-
|
(26)
|
(103)
|
(144)
|
Operating income
|
1,168
|
2,252
|
1,028
|
4,851
|
3,208
|
Operating margin %
|
4.8%
|
9.0%
|
5.2%
|
6.8%
|
5.6%
|
Income from equity method investments and other income
|
6
|
289
|
107
|
443
|
377
|
Net interest expense
|
(477)
|
(457)
|
(376)
|
(1,393)
|
(1,032)
|
Mark to market on convertible bonds
|
59
|
(4)
|
24
|
55
|
720
|
Foreign exchange and other net financing gains (losses)
|
26
|
(443)
|
(31)
|
(1,084)
|
(688)
|
Income (loss) before taxes and non-controlling interest
|
782
|
1,637
|
752
|
2,872
|
2,585
|
Current Tax
|
(209)
|
(311)
|
(209)
|
(834)
|
(677)
|
Deferred Tax
|
55
|
250
|
785
|
785
|
1,706
|
Income tax benefit (expense)
|
(154)
|
(61)
|
576
|
(49)
|
1,029
|
Income from continuing operations including non-controlling interest
|
628
|
1,576
|
1,328
|
2,823
|
3,614
|
Non-controlling interests (relating to continuing operations)
|
31
|
(41)
|
(16)
|
(21)
|
(135)
|
Income from continuing operations
|
659
|
1,535
|
1,312
|
2,802
|
3,479
|
Income from discontinued operations, net of tax
|
-
|
-
|
38
|
461
|
217
|
Net income attributable to owners of the parent
|
$659
|
$1,535
|
$1,350
|
$3,263
|
$3,696
|
Basic earnings per common share
|
0.43
|
0.99
|
0.89
|
2.11
|
2.45
|
Diluted earnings per common share
|
0.19
|
0.93
|
0.89
|
1.81
|
2.03
|
Weighted average common shares outstanding (in millions)
|
1,549
|
1,549
|
1,510
|
1,549
|
1,510
|
Adjusted diluted weighted average common shares outstanding (in millions)
|
1,611
|
1,638
|
1,537
|
1,637
|
1,599
|
OTHER INFORMATION
|
|||||
Total iron ore production11 (million metric tonnes)
|
17.4
|
15.9
|
17.4
|
46.9
|
49.6
|
Crude steel production (million metric tonnes)
|
22.4
|
24.4
|
22.2
|
70.2
|
69.0
|
Total shipments of steel products12 (million metric tonnes)
|
21.1
|
22.2
|
20.5
|
65.2
|
63.8
|
Employees (in thousands)
|
265
|
265
|
266
|
265
|
266
|
In millions of U.S. dollars
|
Three Months Ended
|
Nine Months Ended
|
|||
September 30, 2011
|
June 30, 2011
|
September 30, 2010
|
September 30, 2011
|
September 30, 2010
|
|
Operating activities:
|
|||||
Net income from continuing operations
|
$659
|
$1,535
|
$1,312
|
$2,802
|
$3,479
|
Adjustments to reconcile net income (loss) to net cash provided by operations:
|
|||||
Non-controlling interest
|
(31)
|
41
|
16
|
21
|
135
|
Depreciation and impairment
|
1,240
|
1,161
|
1,134
|
3,552
|
3,464
|
Deferred income tax
|
(55)
|
(250)
|
(785)
|
(785)
|
(1,706)
|
Change in operating working capital13
|
(1,013)
|
(2,811)
|
(1,045)
|
(5,668)
|
(4,670)
|
Other operating activities (net)
|
(30)
|
(249)
|
88
|
(833)
|
(256)
|
Net cash (used in) provided by operating activities - Continued operations
|
770
|
(573)
|
720
|
(911)
|
446
|
Net cash (used in) provided by operating activities - Discontinued operations
|
-
|
-
|
60
|
(190)
|
-
|
Net cash (used in) provided by operating activities
|
770
|
(573)
|
780
|
(1,101)
|
446
|
Investing activities:
|
|||||
Purchase of property, plant and equipment and intangibles
|
(1,267)
|
(1,065)
|
(787)
|
(3,363)
|
(1,929)
|
Other investing activities (net)
|
(31)
|
(186)
|
(26)
|
324
|
(263)
|
Net cash used in investing activities - Continued operations
|
(1,298)
|
(1,251)
|
(813)
|
(3,039)
|
(2,192)
|
Net cash used in investing activities - Discontinued operations
|
-
|
-
|
(22)
|
(105)
|
(68)
|
Net cash used in investing activities
|
(1,298)
|
(1,251)
|
(835)
|
(3,144)
|
(2,260)
|
Financing activities:
|
|||||
Proceeds relating to payable to banks and long-term debt
|
407
|
1,433
|
1,373
|
1,353
|
1,001
|
Dividends paid
|
(309)
|
(302)
|
(331)
|
(905)
|
(922)
|
Proceeds from mandatorily convertible bond
|
250
|
-
|
-
|
250
|
-
|
Acquisition of non-controlling interest
|
(7)
|
-
|
(207)
|
(98)
|
(590)
|
Other financing activities (net)
|
(47)
|
(25)
|
(36)
|
20
|
(73)
|
Net cash (used in) provided by financing activities - Continued operations
|
294
|
1,106
|
799
|
620
|
(584)
|
Net cash (used in) financing activities - Discontinued operations
|
-
|
-
|
(10)
|
(8)
|
(36)
|
Net cash (used in) provided by financing activities
|
294
|
1,106
|
789
|
612
|
(620)
|
Net (decrease) increase in cash and cash equivalents
|
(234)
|
(718)
|
734
|
(3,633)
|
(2,434)
|
Effect of exchange rate changes on cash
|
(178)
|
54
|
242
|
17
|
(101)
|
Change in cash and cash equivalents
|
$(412)
|
$(664)
|
$976
|
$(3,616)
|
$(2,535)
|
In millions of U.S. dollars unless otherwise shown
|
Flat Carbon
Americas
|
Flat Carbon
Europe
|
Long Carbon Americas and
Europe
|
AACIS
|
Distribution
Solutions
|
Mining
|
FINANCIAL INFORMATION
|
||||||
Sales
|
$5,499
|
$7,696
|
$6,676
|
$2,619
|
$4,899
|
$1,678
|
Depreciation and impairment
|
(227)
|
(473)
|
(253)
|
(122)
|
(40)
|
(117)
|
Operating income (loss)
|
193
|
(106)
|
185
|
162
|
8
|
725
|
Operating margin (as a % of sales)
|
3.5%
|
(1.4%)
|
2.8%
|
6.2%
|
0.2%
|
43.2%
|
Capital expenditure14
|
173
|
266
|
280
|
184
|
34
|
319
|
OPERATIONAL INFORMATION
|
||||||
Crude steel production (Thousand MT)
|
5,866
|
7,390
|
5,611
|
3,493
|
-
|
-
|
Steel shipments (Thousand MT)
|
5,708
|
6,385
|
5,984
|
3,005
|
4,607
|
-
|
Average steel selling price ($/MT)15
|
910
|
1,021
|
967
|
771
|
1,010
|
-
|
MINING INFORMATION (Million Mt)
|
||||||
Iron ore production13
|
-
|
-
|
-
|
-
|
-
|
17.4
|
Coal production
|
-
|
-
|
-
|
-
|
-
|
2.2
|
Iron ore shipped externally and internally at market price4
|
-
|
-
|
-
|
-
|
-
|
6.7
|
Iron ore shipped internally at cost-plus4
|
-
|
-
|
-
|
-
|
-
|
6.9
|
Coal shipment shipped externally and internally at market price4
|
-
|
-
|
-
|
-
|
-
|
1.2
|
Coal shipped internally at cost-plus4
|
-
|
-
|
-
|
-
|
-
|
0.8
|
In millions of U.S. dollars unless otherwise shown
|
Flat Carbon
Americas
|
Flat Carbon
Europe
|
Long Carbon Americas and
Europe
|
AACIS
|
Distribution
Solutions
|
Mining
|
FINANCIAL INFORMATION
|
||||||
Sales
|
$16,005
|
$24,059
|
$19,229
|
$8,046
|
$14,179
|
$4,463
|
Depreciation and impairment
|
(675)
|
(1,229)
|
(775)
|
(372)
|
(129)
|
(348)
|
Operating income
|
1,197
|
245
|
753
|
628
|
161
|
1,936
|
Operating margin (as a % of sales)
|
7.5%
|
1.0%
|
3.9%
|
7.8%
|
1.1%
|
43.4%
|
Capital expenditure14
|
436
|
766
|
760
|
487
|
94
|
816
|
OPERATIONAL INFORMATION
|
||||||
Crude steel production (Thousand MT)
|
18,206
|
22,891
|
18,084
|
11,029
|
-
|
-
|
Steel shipments (Thousand MT)
|
16,791
|
20,935
|
18,023
|
9,451
|
13,403
|
-
|
Average steel selling price ($/MT) 15
|
900
|
990
|
948
|
743
|
1,009
|
-
|
MINING INFORMATION (Million Mt)
|
||||||
Iron ore production11
|
-
|
-
|
-
|
-
|
-
|
46.9
|
Coal production
|
-
|
-
|
-
|
-
|
-
|
6.5
|
Iron ore shipped externally and internally at market price3
|
-
|
-
|
-
|
-
|
-
|
19.6
|
Iron ore shipped internally at cost-plus3
|
-
|
-
|
-
|
-
|
-
|
16.8
|
Coal shipment shipped externally and internally at market price3
|
-
|
-
|
-
|
-
|
-
|
3.6
|
Coal shipped internally at cost-plus3
|
-
|
-
|
-
|
-
|
-
|
2.5
|
(Amounts in thousands tonnes)
|
Three months ended September 30, 2011
|
Three months ended June 30, 2011
|
Three months ended September 30, 2010
|
Nine months ended September 30, 2011
|
Nine months ended September 30, 2010
|
Flat Carbon America:
|
5,708
|
5,520
|
4,979
|
16,791
|
15,596
|
North America
|
4,271
|
4,186
|
3,680
|
12,878
|
11,406
|
South America
|
1,437
|
1,334
|
1,299
|
3,913
|
4,190
|
Flat Carbon Europe:
|
6,385
|
7,166
|
6,521
|
20,935
|
20,917
|
Long Carbon:
|
5,984
|
6,167
|
5,772
|
18,023
|
17,450
|
North America
|
1,190
|
1,187
|
1,125
|
3,450
|
3,185
|
South America
|
1,471
|
1,404
|
1,342
|
4,212
|
3,968
|
Europe
|
3,037
|
3,315
|
3,083
|
9,554
|
9,638
|
Other17
|
286
|
261
|
222
|
807
|
659
|
AACIS:
|
3,005
|
3,304
|
3,261
|
9,451
|
9,874
|
Africa
|
1,109
|
1,263
|
1,115
|
3,644
|
3,781
|
Asia, CIS & Other
|
1,896
|
2,041
|
2,146
|
5,807
|
6,093
|
Million metric tonnes (a)
|
Type
|
Product
|
Three months ended September 30, 2011
|
Three months ended June 30, 2011
|
Three months ended September 30, 2010
|
Nine months ended September 30, 2011
|
Nine months ended September 30, 2010
|
North America (b)
|
Open Pit
|
Concentrate and Pellets
|
7.8
|
7.2
|
7.4
|
21.7
|
20.7
|
South America
|
Open pit
|
Lump and Sinter feed
|
1.3
|
1.3
|
1.3
|
3.8
|
3.5
|
Europe
|
Open pit
|
Lump and fines
|
0.6
|
0.4
|
0.4
|
1.4
|
1.1
|
Africa
|
Open Pit / Underground
|
Lump and fines
|
0.7
|
0.4
|
0.3
|
1.3
|
0.8
|
Asia, CIS & Other
|
Open Pit / Underground
|
Concentrate, lump and fines
|
3.7
|
3.7
|
3.5
|
10.7
|
10.3
|
Own iron ore production
|
14.1
|
13.1
|
13.0
|
39.0
|
36.4
|
||
North America (c)
|
Open Pit
|
Pellets
|
1.8
|
0.9
|
2.2
|
2.7
|
7.9
|
Africa (d)
|
Open Pit
|
Lump and Fines
|
1.4
|
1.8
|
2.2
|
5.1
|
5.3
|
Strategic contracts - iron ore
|
3.3
|
2.8
|
4.4
|
7.9
|
13.2
|
||
Group
|
17.4
|
15.9
|
17.4
|
46.9
|
49.6
|
a)
|
Total of all finished production of fines, concentrate, pellets and lumps.
|
b)
|
Includes own mines and share of production from Hibbing (USA-62.30%) and Pena (Mexico-50%).
|
c)
|
Includes two long term supply contracts with Cleveland Cliffs for periods prior to 2011. On April 8, 2011, ArcelorMittal announced that it had reached a negotiated settlement with Cliffs Natural Resources Inc. (“Cliffs”) regarding all pending contract disputes related to the procurement of iron ore pellets for certain facilities in the U.S. As part of the settlement, Cliffs and ArcelorMittal agreed to specific pricing levels for 2009 and 2010 pellet sales and related volumes. Accordingly as from the first quarter of 2011, this excludes the long term supply contract for which settlement was reached.
|
d)
|
Includes long term lease - prices on a cost-plus basis and purchases made under the July 2010 interim agreement with Kumba (South Africa).
|
Millions tonnes
|
Three months ended September 30, 2011
|
Three months ended June 30, 2011
|
Three months ended September 30, 2010
|
Nine months ended September 30, 2011
|
Nine months ended September 30, 2010
|
External sales – Third party
|
2.1
|
1.5
|
1.9
|
4.7
|
4.6
|
Internal sales – Market-priced
|
4.6
|
5.5
|
4.2
|
14.9
|
13.8
|
Internal sales – Cost-plus basis
|
6.9
|
6.2
|
6.1
|
16.8
|
15.7
|
FCA
|
2.6
|
2.4
|
2.1
|
5.3
|
4.1
|
Long
|
1.4
|
1.1
|
1.1
|
3.3
|
2.9
|
AACIS
|
2.9
|
2.7
|
2.8
|
8.1
|
8.7
|
Total sales
|
13.5
|
13.2
|
12.2
|
36.3
|
34.2
|
Strategic contracts
|
3.3
|
2.8
|
4.4
|
7.9
|
13.2
|
FCA
|
1.8
|
0.9
|
2.2
|
2.7
|
7.9
|
AACIS
|
1.4
|
1.8
|
2.2
|
5.1
|
5.3
|
Total
|
16.8
|
15.9
|
16.6
|
44.2
|
47.4
|
Million metric tonnes
|
Three months ended September 30, 2011
|
Three months ended June 30, 2011
|
Three months ended September 30, 2010
|
Nine months ended September 30, 2011
|
Nine months ended September 30, 2010
|
||
North America
|
0.57
|
0.61
|
0.60
|
1.73
|
1.76
|
||
Asia, CIS & Other
|
1.53
|
1.45
|
1.24
|
4.37
|
3.41
|
||
Own coal production
|
2.10
|
2.06
|
1.83
|
6.10
|
5.17
|
||
North America(a)
|
0.05
|
0.08
|
0.06
|
0.18
|
0.16
|
||
Africa(b)
|
0.07
|
0.09
|
0.06
|
0.23
|
0.16
|
||
Strategic contracts - coal (a),(b)
|
0.12
|
0.17
|
0.12
|
0.41
|
0.33
|
||
Group
|
2.22
|
2.23
|
1.95
|
6.51
|
5.50
|
a)
|
Includes strategic agreement - prices on a cost-plus basis
|
b)
|
Includes long term lease - prices on a cost-plus basis
|
Million metric tonnes
|
Three months ended September 30, 2011
|
Three months ended June 30, 2011
|
Three months ended September 30, 2010
|
Nine months ended September 30, 2011
|
Nine months ended September 30, 2010
|
External sales - Third party
|
0.80
|
0.95
|
0.51
|
2.55
|
1.61
|
Internal sales - Market-priced
|
0.42
|
0.35
|
0.42
|
1.08
|
0.97
|
Internal sales (AACIS) - Cost-plus basis
|
0.83
|
0.77
|
0.78
|
2.50
|
2.31
|
Total sales
|
2.05
|
2.06
|
1.72
|
6.13
|
4.89
|
Strategic contracts
|
0.12
|
0.17
|
0.12
|
0.41
|
0.33
|
Total
|
2.17
|
2.23
|
1.83
|
6.54
|
5.22
|
Debt repayment schedule (billions of U.S. dollars)
|
2011
|
2012
|
2013
|
2014
|
2015
|
>2015
|
Total
|
Term loan repayments
|
|||||||
- Convertible bonds
|
-
|
-
|
0.1
|
2.1
|
-
|
-
|
2.2
|
- Bonds
|
-
|
-
|
3.5
|
1.3
|
1.7
|
11.1
|
17.6
|
Subtotal
|
-
|
-
|
3.6
|
3.4
|
1.7
|
11.1
|
19.8
|
LT revolving credit lines
|
|||||||
- $6bn syndicated credit facility
|
-
|
-
|
-
|
-
|
-
|
1.8
|
1.8
|
- $4bn syndicated credit facility
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
- $0.6bn bilateral credit facilities
|
-
|
-
|
0.3
|
-
|
-
|
-
|
0.3
|
Commercial paper18
|
1.0
|
0.2
|
-
|
-
|
-
|
-
|
1.2
|
Other loans
|
1.1
|
1.5
|
0.5
|
0.3
|
0.3
|
0.9
|
4.6
|
Total Gross Debt
|
2.1
|
1.7
|
4.4
|
3.7
|
2.0
|
13.8
|
27.7
|
Credit lines available (billions of U.S. dollars)
|
Maturity
|
Equiv. (U.S. dollars)
|
Drawn
|
Available
|
|||
- $6bn syndicated credit facility
|
18/03/2016
|
$6.0
|
$1.8
|
$4.2
|
|||
- $4bn syndicated credit facility
|
06/05/2015
|
$4.0
|
-
|
$4.0
|
|||
- $0.6bn bilateral credit facilities
|
30/06/2013
|
$0.6
|
$0.3
|
$0.3
|
|||
Total committed lines
|
$10.6
|
$2.1
|
$8.5
|
Ratios
|
Three months ended September 30, 2011
|
Three months ended June 30, 2011
|
|||||
Long-term debt, plus short-term debt, less cash and cash equivalents, restricted cash and short-term investments, divided by total equity
|
39%
|
38%
|
|||||
Consolidated Total Net Borrowings to Consolidated EBITDA (as defined in the Company’s principal credit facilities)19
|
2.4X
|
2.5X
|
Three months ended | Nine months ended | ||||
Sept 30,
|
June 30,
|
Sept 30,
|
Sept 30,
|
Sept 30,
|
|
In U.S. dollars
|
2011
|
2011
|
2010
|
2011
|
2010
|
Earnings per share - Discontinued operations
|
|||||
Basic earnings (loss) per common share
|
0.00
|
0.00
|
0.02
|
0.30
|
0.15
|
Diluted earnings (loss) per common share
|
0.00
|
0.00
|
0.02
|
0.28
|
0.13
|
Earnings per share - Continued operations
|
|||||
Basic earnings (loss) per common share
|
0.43
|
0.99
|
0.87
|
1.81
|
2.30
|
Diluted earnings (loss) per common share
|
0.19
|
0.93
|
0.87
|
1.53
|
1.90
|
Earnings per share
|
|||||
Basic earnings (loss) per common share
|
0.43
|
0.99
|
0.89
|
2.11
|
2.45
|
Diluted earnings (loss) per common share
|
0.19
|
0.93
|
0.89
|
1.81
|
2.03
|
Capex (In millions of U.S. dollars)
|
Three months
ended September 30, 2011
|
Three months ended June 30, 2011
|
Three months ended September 30, 2010
|
Nine months ended September 30, 2011
|
Nine months ended September 30, 2010
|
Flat Carbon Europe
|
266
|
239
|
150
|
766
|
428
|
Flat Carbon Americas
|
173
|
151
|
132
|
436
|
403
|
Long Carbon Steel
|
280
|
229
|
182
|
760
|
394
|
Asia, Africa and CIS
|
184
|
113
|
144
|
487
|
345
|
Distribution Solutions
|
34
|
32
|
25
|
94
|
61
|
Mining
|
319
|
297
|
112
|
816
|
265
|