ArcelorMittal reduced cost base, strengthened balance sheet in 2009

RP news wires
Tags: manufacturing

ArcelorMittal, the world’s leading steel company, on February 10 announced results for the three- and 12-month periods ended December 31, 2009.

Highlights:

Health and safety frequency rate improved by 24 percent during 2009
Shipments of 71.1 million tonnes in 2009 and of 20 million tonnes in Q4 2009, up 10 percent compared to Q3 2009
EBITDA of $5.8 billion in 2009 and $2.1 billion in Q4 2009, up 34 percent compared to Q3 2009
Cash flow from operations of $7.3 billion for 2009
Net debt reduced to $18.8 billion, down $13.7 billion from the start of the global economic crisis

Performance and industrial plan:

Capacity utilisation increased to 70 percent in Q4 2009
$2.7 billion of annualized sustainable cost reductions achieved in 2009; on track to achieve $5 billion of management gains by 2012
Current CAPEX plan of $4 billion for 2010, up 43 percent from 2009, focused on selective growth projects in emerging markets

Guidance for the three months ended March 31, 2010:

EBITDA expected to be between $1.8 billion and $2.2 billion

Financial highlights (on the basis of IFRS, amounts in US$):

(USDm) unless otherwise shown	4Q 09	3Q 09	4Q 08 ²	12M 09	12M 08²
Sales	$18,642	$16,170	$22,089	$65,110	$124,936
EBITDA	2,131	1,589	2,808	5,824	24,478
Operating Income / (Loss)	684	305	(3,466)	(1,678)	12,236
Net Income / (Loss)	1,070	903	(2,632)	118	9,399

Iron Ore Production (Million Mt)	15.6	13.1	15.5	52.7	64.7
Crude Steel Production (Million Mt)	22.5	19.6	14.9	73.2	103.3
Steel Shipments (Million Mt)	20.0	18.2	17.1	71.1	101.7
EBITDA/tonne (US$/t)	107	87	165	82	241
Operating Income (loss) /tonne (US$/t)	34	17	(203)	(24)	120
Basic Earnings per share (USD)	0.71	0.60	(1.93)	0.08	6.80

Lakshmi N. Mittal, chairman and CEO, ArcelorMittal, said: "In a very difficult environment, ArcelorMittal has succeeded in reducing its cost base substantially and significantly strengthening the balance sheet. We, therefore, start the year in a good position to benefit from the progressive, albeit slow, recovery that is under way. Although 2010 will continue to be challenging, we are now increasing capital expenditure to take advantage of selected growth opportunities as demand improves."