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ArcelorMittal Reports First Quarter 2013 Results

05/10/2013 - ArcelorMittal, the world’s leading integrated steel and mining company, announced results for the three month period ended 31 March 2013.

ArcelorMittal, the world’s leading integrated steel and mining company, announced results for the three month period ended 31 March 2013.
Highlights:
  • Health and safety performance improved in 1Q 2013 with a LTIF rate of 0.9x as compared to 1.1x at 4Q 2012
  • EBITDA of US$1.6 billion in 1Q 2013 as compared to US$1.6 billion in 4Q 2012 (which included US$0.5 billion of gains from asset disposal and CO2 credit sales)
  • Steel shipments of 20.9 million tonnes, an increase of 4.7% as compared to 4Q 2012
  • 13.1 million tonnes own iron ore production; 7.3 million tonnes shipped and reported at market prices vs. 6.8 million tonnes in 1Q 2012
  • Net debt decreased by US$3.8 billion during 1Q 2013 to US$18.0 billion as of 31 March 2013 due largely to proceeds from combined offering (US$4 billion) and proceeds from the first tranche of AMMC 15% stake sale (US$0.8 billion), partially offset by working capital investment (US$0.5 billion)
  • Liquidity improved to US$18 billion from US$14.5 billion at end 4Q 2012; average debt maturity of 6.0 years
  • US$0.2 billion New Management Gains achieved during 1Q 2013, from implementation of the new plan to achieve US$3 billion of improvement by the end of 2015
Outlook and guidance:
  • The Company reiterates its guidance framework for 2013: Assuming that in 2013 iron ore prices and the margin of steel prices over raw material costs are similar to the levels of 2012, the Company expects to report EBITDA above US$7.1 billion
  • The anticipated improvement in underlying profitability in 2013 is expected to be driven by three factors: a) a 2% increase in steel shipments; b) an approximate 20% increase in marketable iron ore shipments; and c) the realized benefits from Asset Optimization and Management Gains initiatives
  • EBITDA in 2Q 2013 is expected to be above 1Q 2013 levels. Together with an anticipated release of working capital and receipt of previously announced disposal proceeds, this should support a further reduction in net debt to approximately US$17 billion by end June 2013
  • 2013 capital expenditures are expected to be approximately US$3.5 billion
Mr. Lakshmi N. Mittal, chairman and CEO of ArcelorMittal, commented, “Economic conditions remain challenging but our performance in the quarter reflects the results of the management action we have taken to confront the effects of the financial crisis. We have significantly reduced our net debt and the steps we have taken to focus production on our more competitive assets are beginning to yield results.
“We continue to priorities our key franchise businesses. These include automotive, where our market leading high strength steels are highly valued by our customers; and mining, where the ramp up of ArcelorMittal Mines Canada remains on track for the first half of the year.”