ArcelorMittal reports second quarter and first half 2008 results

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

30 Jul 2008

ArcelorMittal (referred to as “ArcelorMittal”, or “the Company”) the world’s leading steel company, today announces results for the three and six month periods ended June 30, 2008. H108 highlights: Sales of $67.6 billion, up 31% compared with H107  EBITDA1 of $13.1 billion, up 35% compared with H107 Net Income of $8.2 billion, up 65% as compared with H107 Capital expenditure of $2.3 billion in H108 Q208 highlights:
Sales of $37.8 billion, up 39% compared with Q207
EBITDA of $8.0 billion, up 51% compared with Q207
Net Income of $5.8 billion, up 114% as compared with Q207
Capital expenditure of $1.4 billion in Q208
Recent Key Announcements
Groundbreaking global health and safety agreement signed with labour unions to further improve Occupational Health & Safety
Agreements signed to acquire Mid Vol Coal Group and Concept Group (2 metallurgical coal companies located in West Virginia, USA)
Allocated mining lease for the Karampada iron-ore deposit in Jharkhand, India
Acquisition of Bayou Steel (manufacture of structural steel in Louisiana, USA)
Launch of new clean technology venture capital fund
Guidance for Q308
Q308 EBITDA guidance to exceed $8.5 billion
Commenting, Mr Lakshmi N. Mittal, Chairman and CEO , ArcelorMittal, said:
We are pleased to report results for the first half of 2008, with EBITDA of $13.1 billion up 35% over the same period in 2007. This reflects the diversity and strength of the ArcelorMittal business model, in particular the significant diversification of our value chain including our considerable mining operations.
We continue to look for opportunities to further enhance our raw material self sufficiency, with recent investments being announced in Africa, the Americas and Australia.
Our financial strength enables us to continue to invest heavily in the development of the business, particularly relating to brownfield growth and improving product quality and mix. This year we expect capital expenditures to reach $7 billion, representing 36% of 2007 EBITDA.
Financial highlights (on the basis of IFRS2, amounts in US$ and Euros3 ):
(In millions of US dollars except earnings per share and shipments data)
Results     US Dollars
    Q2 2008     Q1 2008     Q2 2007     H1 2008     H1 2007
Shipments (Million MT)4    29.8     29.2     28.7     59.0     55.7
Sales     37,840     29,809     27,223     67,649     51,699
EBITDA     8,046     5,044     5,326     13,090     9,672
Operating income     6,621     3,614     4,232     10,235     7,687
Net income     5,839     2,371     2,723     8,210     4,973
Basic earnings per share     $4.20     $1.69     $1.97     $5.87     $3.60
 (In millions of Euros except earnings per share and shipments data)
Results     Euros3
    Q2 2008     Q1 2008     Q2 2007     H1 2008     H1 2007
Shipments (Million MT)4    29.8     29.2     28.7     59.0     55.7
Sales     24,222     19,895     20,194     44,201     38,898
EBITDA     5,150     3,366     3,951     8,553     7,277
Operating income     4,238     2,412     3,139     6,687     5,784
Net income     3,738     1,582     2,020     5,364     3,742
Basic earnings per share     €2.69     €1.13     €1.46     €3.84     €2.71

Source:  ArcelorMittal