Luxembourg, February 7, 2014 – 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 results[1] for the three and twelve-month periods ended December 31, 2013.
Highlights[2]:
- Health and safety performance improved in 2013 with an annual LTIF rate[3] of 0.8x as compared to 1.0x in 2012
- FY 2013 EBITDA[4] of $6.9 billion, a 10.7% improvement versus FY 2012[5] on an underlying basis
- 4Q 2013 EBITDA of $1.9 billion
- FY 2013 net loss of $2.5 billion (including exceptional items totalling $1.5 billion[6])
- 4Q 2013 net loss of $1.2 billion (including exceptional items totalling $1.3 billion[7])
- Free cash flow positive[8] in FY 2013; $4.3 billion of cash flow from operations and capex of $3.5 billion
- Net debt[9] at year end of $16.1 billion, a decrease of $5.7 billion during 2013
- Pension/OPEB net obligations decreased by $2.6 billion[10] during 2013
- FY 2013 steel shipments of 84.3Mt (+0.6% YoY); 4Q 2013 steel shipments of 20.9Mt up (+4.4%) vs. 4Q 2012
- FY 2013 iron ore shipments of 59.7Mt (+9.6% YoY), of which 35.1Mt shipped at market prices[11] (+22% YoY)
- $1.1 billion in annualized management gains achieved during 2013, in line with plan to achieve $3 billion of cost improvement by the end of 2015
- Dividend maintained at $0.20/share, subject to shareholders’ approval
Key developments:
- ArcelorMittal and Nippon Steel & Sumitomo JV have agreed to acquire 100% of ThyssenKrupp Steel USA for $1.55 billion
- The ramp-up of expanded capacity at AMMC completed with run-rate of 24 Mt achieved by year-end 2013; Phase II expansion of Liberia from 4 Mtpa direct shipped ore (“DSO”) to 15 Mtpa concentrate ongoing, with first concentrate production targeted by end of 2015
Outlook and guidance framework:
- Based on its guidance framework, the Company anticipates 2014 EBITDA of approximately $8 billion, assuming:
a) Steel shipments increase by approximately 3% in 2014 as compared to 2013
b) Marketable iron ore shipments increase by approximately 15%
c) The average iron ore price is in line with the market consensus (approximately $120/t for 62% Fe CFR China)
d) A moderate improvement in steel margins - Net interest expense is expected to be approximately $1.6 billion for 2014
- Capital expenditure is expected to be approximately $3.8-4.0 billion for 2014
- The Company maintains its medium term net debt target at $15 billion
Financial highlights (on the basis of IFRS[1], amounts in USD):
| (USDm) unless otherwise shown | Quarterly comparison | Semi-annual comparison | Annual comparison | |||||
|---|---|---|---|---|---|---|---|---|
| 4Q 13 | 3Q 13 | 4Q 12[2] | 2H 13 | 1H 13 | 2H 12[2] | 12M 13 | 12M 122 | |
| Sales | 19,848 | 19,643 | 19,309 | 39,491 | 39,949 | 39,032 | 79,440 | 84,213 |
| EBITDA | 1,910 | 1,713 | 1,557 | 3,623 | 3,265 | 3,002 | 6,888 | 7,679 |
| Operating income / (loss) | (36) | 477 | (4,711) | 441 | 756 | (4,656) | 1,197 | (2,645) |
| Net (loss) | (1,227) | (193) | (3,808) | (1,420) | (1,125) | (4,460) | (2,545) | (3,352) |
| Basic (loss) per share (USD) | (0.69) | (0.12) | (2.47) | (0.81) | (0.65) | (2.89) | (1.46) | (2.17) |
| Own iron ore production (Mt) | 15.4 | 14.9 | 14.0 | 30.3 | 28.1 | 28.3 | 58.4 | 55.9 |
| Iron ore shipments at market price (Mt) | 10.3 | 9.4 | 6.6 | 19.7 | 15.5 | 13.8 | 35.1 | 28.8 |
| Crude steel production (Mt) | 23.0 | 23.3 | 20.8 | 46.3 | 44.9 | 42.7 | 91.2 | 88.2 |
| Steel shipments (Mt) | 20.9 | 21.1 | 20.0 | 42.0 | 42.3 | 39.9 | 84.3 | 83.8 |
| EBITDA/tonne (USD/t)[12] | 91 | 81 | 78 | 86 | 77 | 75 | 82 | 92 |
Commenting, Mr. Lakshmi N. Mittal, ArcelorMittal Chairman and CEO, said:
“The measures we have implemented to strengthen the business continue to yield positive results. In 2013 we delivered a 11% underlying increase in EBITDA, positive free cash flow and ended the year with net debt at the lowest level since the creation of ArcelorMittal in 2006. The improvement in the overall economic situation led us to re-start some selected steel growth projects. In addition, we have expanded our ability to serve the growing NAFTA automotive and energy steel markets through our agreement to acquire ThyssenKrupp’s rolling mill in Calvert, Alabama. We are cautiously optimistic about the outlook for 2014 and expect EBITDA for the full year to improve to approximately $8.0 billion.”
About ArcelorMittal
ArcelorMittal is the world’s leading steel and mining company, with a presence in more than 60 countries and an industrial footprint in over 20 countries. Guided by a philosophy to produce safe, sustainable steel, we are the leading supplier of quality steel in the major global steel markets including automotive, construction, household appliances and packaging, with world-class research and development and outstanding distribution networks.
Through our core values of sustainability, quality and leadership, we operate responsibly with respect to the health, safety and wellbeing of our employees, contractors and the communities in which we operate.
For us, steel is the fabric of life, as it is at the heart of the modern world from railways to cars and washing machines. We are actively researching and producing steel-based technologies and solutions that make many of the products and components we use in our everyday lives more energy-efficient.
We are one of the world’s five largest producers of iron ore and metallurgical coal and our mining business is an essential part of our growth strategy. With a geographically diversified portfolio of iron ore and coal assets, we are strategically positioned to serve our network of steel plants and the external global market. While our steel operations are important customers, our supply to the external market is increasing as we grow.
In 2013, ArcelorMittal had revenues of $79.4 billion and crude steel production of 91.2 million tonnes, while own iron ore production reached 58.4 million tonnes.
ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MT), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS).
For more information about ArcelorMittal please visit: corporate.arcelormittal.com