ArcelorMittal Posts 2011 EBITDA Of $10.1 Billion, Up 18.7% On Year

ArcelorMittal said Tuesday that full year 2011 EBITDA was $10.1 billion, up 18.7% on the year, with a Fourth Quarter 2011 EBITDA of $1.7 billion (including positive $0.1 billion from sale of CO2 credits).

ArcelorMittal said that 2011 net income was $2.3 billion or $1.46 per share. Relatedly, the company posted a 4Q 2011 net loss of $1.0 billion due in part to $1.3 billion of non-cash charges (reduction of deferred tax assets ($0.9 billion), together with asset impairments ($0.2 billion) and restructuring charges associated with asset optimization ($0.2 billion).

4Q 2011 steel shipments of 20.6Mt were down 2.5% versus 3Q 2011 driven mainly by destocking in Europe.

The company said that mining production targets achieved were 2011 iron ore production of 54.1Mt (+10.5% y-o-y), of which 28.0Mt shipped at market prices (+11.5% y-o-y); FY 2011 coal production of 8.3Mt (+ 20% y-o-y), of which 4.9Mt shipped at market prices (+45% y-o-y)

Net debt reduced by $2.4 billion during 4Q 2011 to $22.5 billion as of December 31, driven by improved cash flow from operations of $2.9 billion, inflow of $0.8 billion from MacArthur Coal divestment and foreign exchange gains, ArcelorMittal said.

Commenting, Mr. Lakshmi N. Mittal, Chairman and CEO, ArcelorMittal, said, “The progressive recovery that we have been experiencing was impacted in the second half of the year by the growing uncertainty over the economic situation in Europe, which particularly affected sentiment and performance in the fourth quarter. Nevertheless, against this backdrop ArcelorMittal delivered an improved underlying performance compared with 2010 and met our expectation of a higher EBITDA in the second half compared with the previous year. The Company continues to benefit from its diverse geographic presence and growing mining business, which delivered on its targets to increase iron-ore and coal production by 10% and 20% respectively. I must also remark on our health and safety performance, which showed an improvement in the injury frequency rate to 1.2x in the fourth quarter.”

“Looking ahead to 2012, the situation in Europe remains a live concern. Despite the continued uncertainty in this market, however, we are seeing an improvement in sentiment compared with the fourth quarter. Steel shipment volumes for the first six months are expected to be similar to the first half of 2011 and we are again targeting increased production from our mining business.”