ArcelorMittal has announced results for the three and six month periods ended June 30, 2013.
For the half year 2013, EBITDA was $3.265Bbn down 30.19% on H1 2012. Sales fell 11.58% to $39.949bn. A net loss of $1.125bn occurred in H1 2013, but this was an improvement over the loss of $4.460bn in H2 2012. In H1 2012 a profit of $1.108 was posted.
Underlying profitability is expected to improve in H2 2013, driven by three factors: a) a 1-2% 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.
Nevertheless, due largely to lower than forecast apparent demand and lower than anticipated raw material prices, the Company now expects to report 2013 EBITDA no greater than $6.5bn.
Due to an expected investment in working capital and the payment of the annual dividend, net debt is expected to increase in H2 2013 to approximately $17bn; the $15 billion medium term net debt target is unchanged and 2013 capital expenditures are now expected to be approximately $3.7bn.
Commenting, Mr Lakshmi N. Mittal, ArcelorMittal Chairman and CEO, said:
“The operating environment in the first half continued to be challenging but we have delivered progress in a number of important areas. The benefits of our restructuring efforts - particularly in Europe - are evident; strong cash-flow performance has enabled us to reduce net debt to below our mid-year target; and the expansion of ArcelorMittal Mines Canada is largely complete and will ramp up during the second half 2013 [from 16Mt to 24Mt]. Although we have revised our full year guidance, the second half should deliver a clear underlying improvement relative to the second half of 2012, which we believe marked the lowest point in the cycle.”
- Quarter 2 2013, EBITDA was $1.7bn, representing a 19% underlying improvement compared to Q1 2013.
- Steel shipments reached 21.3Mt in Q2 2013, an increase of 1.7% compared to Q1 2013.The Group’s iron ore production was 15Mt in Q2 13 up +3.8% yoy. 8.2Mt was shipped and reported at market price, flat yoy
- Net debt decreased to $16.2bn as of June 30, 2013, driven by improved cash flow from operations ($2.4bn) and M&A proceeds ($0.3bn)
- $0.6bn in annualized management gains were achieved during the first half 2013, in line with plan to achieve $3bn of cost improvement by the end of 2015.
- Completion of AMMC mining capacity expansion from 16Mt to 24Mt; iron ore production is to ramp-up during 2H 2013.
- The Company’s Health and Safety performance was maintained in Q2 2013 with a lost-time injury frequency (LTIF) rate of 0.9x.