ArcelorMittal reports record full year and fourth quarter2007 results
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Luxembourg, February 13, 2008 – ArcelorMittal 1 (referred toas “ArcelorMittal”, or the “Company”) (New York: MT; Amsterdam: MT; Madrid:MTS; Paris: MTP; Brussels: MTBL; Luxembourg: MT), the world’s largest and mostglobal steel company, today announced results for the three- and twelve-monthperiods ended December 31, 2007.
Highlights:
Record 2007 results
* EBITDA 2 of$19.4 billion, up 27% year-on-year
* Net income of$10.4 billion, up 30% year-on-year
* Strong cash flowfrom operations of $16.5 billion; $5.4 billion capex spend
* Total return toArcelorMittal shareholders of $4.4 billion in 2007, of which $1.8 billion in cashdividends paid and $2.6 billion in share buy-backs
* Synergies of$1.4 billion generated by end of 2007
Dividend distribution 2008
* As per theCompany’s dividend policy of returning 30% of net income to shareholders,ArcelorMittal will return a total of $3.1 billion to shareholders in 2008, ofwhich $2.1 billion will be in cash dividends and $1.0 billion in sharebuy-backs
Three dimensional growth strategy advancing:
* 20 milliontonnes of organic growth potential as announced on September 11, 2007
* Geographicstrategy advancing with transactions announced in Argentina, Brazil, China,Costa Rica, Egypt, Mexico and Poland
* Development ofproduct diversification with transactions in pipes and tubes, galvanizing,stainless steel and wire businesses
* Enhancement invalue chain with progress in both mining activities and distribution
* Total of 35transactions announced in 2007 - 14 transactions completed in 2007, with acapital outlay of $12.3 billion 3 including cash paid, debt assumed and fairvalue of equity issued
Guidance for first quarter 2008
* Q108 EBITDAguidance 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. Weare announcing today record earnings with EBITDA of $19.4 billion, some 27%higher than pro forma 2006 results, and strong cash flow from operations. Thisreflects the strength of the ArcelorMittal business model, which enables us tobenefit from a healthy global demand for steel in both the high-qualitydeveloped and fast-growth developing economies.
2007 was the first full year following the merger of Arcelorand Mittal Steel to create the world’s leading steel company. I am very proudof the way the two companies have integrated so successfully, building a steelcompany which is focused on leading the transformation of our industry towardsa sustainable future. Today’s results clearly demonstrate the considerableprogress that we are making in this regard.
Separately, we have not let the integration process distractus from continuing to identify further opportunities for progress. In 2007, we announced 35 acquisitions, all ofwhich serv ...
