ArcelorMittal: Record full year and Q4 2007 results

Luxembourg, Luxembourg – ArcelorMittal1
(referred to as ‘ArcelorMittal’, or the ‘Company’)
(New York: MT; Amsterdam: MT; Madrid: MTS; Paris: MTP; Brussels: MTBL; Luxembourg: MT), the
world’s largest and most global steel company, announced results for the three- and twelve-
month periods ended December 31, 2007.

Highlights:
Record 2007 results
• EBITDA2 of $19.4 billion, up 27% year-on-year
• Net income of $10.4 billion, up 30% year-on-year
• Strong cash flow from operations of $16.5 billion; $5.4 billion capex spend
• Total return to ArcelorMittal shareholders of $4.4 billion in 2007, of which $1.8 billion in cash dividends paid and $2.6 billion in share buy-backs
• Synergies of $1.4 billion generated by end of 2007 Dividend distribution 2008
• As per the Company’s dividend policy of returning 30% of net income to shareholders, ArcelorMittal will return a total of $3.1 billion to shareholders in 2008, of which $2.1 billion will be in cash dividends and $1.0 billion in share buy-backs

Three dimensional growth strategy advancing:
• 20 million tonnes of organic growth potential as announced on September 11, 2007
• Geographic strategy advancing with transactions announced in Argentina, Brazil, China, Costa Rica, Egypt, Mexico and Poland
• Development of product diversification with transactions in pipes and tubes, galvanizing, stainless steel and wire businesses
• Enhancement in value chain with progress in both mining activities and distribution
• Total of 35 transactions announced in 2007 – 14 transactions completed in 2007, with a capital outlay of $12.3 billion3 including cash paid, debt assumed and fair value of equity issued Guidance for first quarter 2008
• Q108 EBITDA guidance of $4.7 – $5.0 billion, versus $4.3 billion in Q107

Commenting, Lakshmi N. Mittal, President and CEO, ArcelorMittal, said:

‘2007 has been a truly excellent year for ArcelorMittal. We are announcing today record earnings with
EBITDA of $19.4 billion, some 27% higher than pro forma 2006 results, and strong cash flow from
operations. This reflects the strength of the ArcelorMittal business model, which enables us to benefit
from a healthy global demand for steel in both the high-quality developed and fast-growth developing
economies.
2007 was the first full year following the merger of Arcelor and Mittal Steel to create the world’s
leading steel company. I am very proud of the way the two companies have integrated so
successfully, building a steel company which is focused on leading the transformation of our industry
towards a sustainable future. Today’s results clearly demonstrate the considerable progress that we
are making in this regard.
Separately, we have not let the integration process distract us from continuing to identify further
opportunities for progress. In 2007, we announced 35 acquisitions, all of which serve to strengthen
ArcelorMittal’s global steel offering further. We have also identified 20 million tonnes of organic
growth potential.
Looking forward we are expecting performance in the first quarter of 2008 to be comparable to the
fourth quarter 2007 levels. We are very pleased with the performance and progress of the
Company’.

Read the full press release here.

1
ArcelorMittal is the name of the entity resulting from the merger of (the former) ArcelorMittal into Arcelor on
November 13, 2007.
2
EBITDA is defined as operating income plus depreciation and impairment

Auteur: Redactie Infrasite

Bron: ArcelorMittal