Highlights:

• Health and safety: LTIF rate of 0.87x in 2Q 2014 as compared to 0.90x in 2Q 2013
• EBITDA of US$1.8 billion (including a US$0.1 billion US litigation charge) in 2Q 2014, a 9% improvement as compared to 2Q 2013 on an underlying basis; with notable improvements in Europe (EBITDA +41% vs. 2Q 2013) and ACIS (EBITDA +23% vs. 2Q 2013)  
• Net income of US$0.1 billion in 2Q 2014 as compared to a net loss of US$0.8 billion in 2Q 2013
• Steel shipments of 21.5 million metric tons, an increase of 2.5% as compared to 2Q 2013
• 16.6 million metric tons own iron ore production as compared to 15.0 million metric tons in 2Q 2013; 10.5 million metric tons shipped and reported at market prices as compared to 8.2 million metric tons in 2Q 2013
• Net debt of US$17.4 billion as of June 30, 2014 a decrease of US$1.1 billion during the quarter due to release of working capital (US$0.9 billion) and M&A proceeds (US$0.2 billion)

Key developments:

• Progress on ACIS turnaround evident in improved Kazakhstan and Ukraine performance
• Franchise steel business development: Cold mill complex at VAMA advanced automotive steel plant in China has been inaugurated
• Calvert plant currently running at 83% utilization; ArcelorMittal Tubarão blast furnace No.3 restarted in July 2014
• Agreement signed with BHP Billiton to acquire its stake in the Mount Nimba iron ore project in Guinea

Outlook and guidance framework:

• The previously announced 2014 guidance framework remains valid. The iron ore price has, however, been lower than anticipated and this underlying assumption has been adjusted to US$105/t for the full year 2014 (from US$120/t previously) implying a second-half average of US$100/t.  All other components of the framework remain unchanged
• As a result, the Company now expects 2014 EBITDA in excess of US$7.0 billion, assuming:
  a) Steel shipments increase by approximately 3% in 2014 as compared to 2013
  b) Marketable iron ore shipments increase by approximately 15% in 2014 as compared to 2013
  c) The iron ore price averages approximately US$105/t (for 62% Fe CFR China) during 2014
  d) An improvement in steel margins despite the weather related impacts on NAFTA segment’s first-half performance
• Net interest expense is expected to be approximately US$1.6 billion for 2014
• Capital expenditure is expected to be approximately US$3.8-4.0 billion for 2014
• The Company maintains its medium term net debt target of US$15 billion

Financial highlights (on the basis of IFRS:  

(US$ millions) unless otherwise shown	2Q 14	1Q 14	2Q 13	1H 14	1H 13
Sales	20,704	19,788	20,197	40,492	39,949
EBITDA	1,763	1,754	1,700	3,517	3,265
Operating income	832	674	352	1,506	756
Net income / (loss) attributable to equity holders of the parent	52	(205)	(780)	(153)	(1,125)
Basic income / (loss) per share (USD)	0.03	(0.12)	(0.44)	(0.09)	(0.65)
Own iron ore production (million metric tons)	16.6	14.8	15.0	31.4	28.1
Iron ore shipments at market price (million metric tons)	10.5	9.3	8.2	19.8	15.5
Crude steel production (million metric tons)	23.1	23.0	22.5	46.1	44.9
Steel shipments (million metric tons)	21.5	21.0	20.9	42.4	41.4
EBITDA/tonne (USD/t)	82	84	81	83	79

 
Commenting, Mr. Lakshmi N. Mittal, ArcelorMittal chairman and CEO, said: “The second quarter and first half results reflect the anticipated improvement in steel shipments and margins, supporting an underlying EBITDA improvement compared with last year.  The expansion of our iron ore business is also on track, although increased iron ore shipments were offset by the lower than anticipated iron ore price, which has led us to revise our EBITDA guidance for the full year.
 
“Looking ahead, indicators in both Europe and the U.S., which together account for two thirds of our shipments, continue to be positive and we have increased our steel demand forecasts for both markets.  ArcelorMittal continues to focus on delivering on its strategy of reducing costs, investing in our franchise businesses and reducing net debt.”