ArcelorMittal net income of $2.4bn, up 5%

ArcelorMittal (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, today announced results for the three months ended March 31, 2008.

Q108 highlights:

· Shipments1 of 29.2 million metric tonnes, up 8% compared with Q107

· Sales of $29.8 billion, up 22% compared with Q107

· EBITDA2 of $5.0 billion, up 16% compared with Q107

· Net Income of $2.4 billion, up 5% as compared with Q107

· Cash flow from operations of $2.0 billion; and $1.0 billion of capital expenditure

· Total return to ArcelorMittal shareholders of $2.6 billion in 2008, of which $0.5 billion in cash dividends paid and $2.1 billion in share buy-backs

· Merger synergies run-rate of $1.6 billion achieved by end of quarter

Three dimensional growth strategy advancing:

· Geographic strategy advancing, with transactions announced or completed in Argentina, Brazil, China, Costa Rica, Egypt and Venezuela

· Development of product diversification, with transactions in pipes and tubes and wire businesses

· Enhancement in value chain, with progress in both mining activities and distribution. New mining initiatives announced/ completed in Russia, Mozambique and South Africa

1 Shipments are defined as the sum of segment shipments excluding AM3S. Some intercompany shipments included.

2 EBITDA is defined as operating income plus depreciation and impairment.

Guidance for second quarter 2008

· Q208 EBITDA guidance to exceed $6.5 billion, versus $5.0 billion in Q108 and $5.3 billion in Q207

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

ArcelorMittal has again delivered a strong set of numbers for the quarter, with EBITDA of $5.0 billion. Despite global economic uncertainties, we are continuing to see strong demand for steel and a healthy pricing dynamic. This global demand is supported by the continued industrialization of a number of key, emerging economies and ArcelorMittal is well positioned to continue to take advantage of these dynamics.

We have also now fully captured the $1.6 billion of synergies that we announced we expected from our successful merger with Arcelor. Looking forward, we expect EBITDA in the second quarter to be higher than in the first quarter to exceed $6.5 billion, largely on account of strong demand for our products across all regions.

To view detailed press release click on the attachment. 

Sourced From: ArcelorMittal