ArcelorMittal reports third quarter 2008 results

05/11/2008

ArcelorMittal (referred to as “ArcelorMittal”, or “the Company”) (New York: MT; Amsterdam: MT; Madrid: MTS; Paris: MTP; Brussels: MTBL; Luxembourg: MT), the world’s leading steel company, today announced results for the three and nine-month periods ended September 30, 2008.

Highlights for the three months ended September 30, 2008:

- Sales of $35.2 billion, up 38% compared with Q307
- EBITDA1,2 of $8.6 billion, up 76% compared with Q307
- Net income of $3.8 billion, up 29% as compared with Q307
- Capital expenditures of $1.8 billion in Q308
- Total return to ArcelorMittal shareholders of $2.3 billion, of which $0.5 billion in cash dividends paid and $1.8 billion in share buy-backs
- Base dividend to be maintained at $1.50 per share for 2009

Guidance

- Q408 EBITDA guidance to be in the range of $2.5 - $3. 0 billion
- On track to deliver full year EBITDA of $24.2 - $24.7 billion compared with 2007 full year EBITDA of $19.4 billion

The Company also announces initiatives in response to the current economic environment:

- Adaptation of existing growth plan to reflect market conditions
- Increased management gains target from $4 billion to $5 billion through additional selling, general and administrative (SG&A) savings over the next five years
- Increase of temporary production cuts to accelerate inventory reduction
- Targeting $10 billon net debt3 reduction by end of 2009 to increase financial flexibility

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

“We have announced today strong results for the quarter with EBITDA of US$8.6 billion. Looking forward, we have also announced necessary and responsible measures to ensure we are well adapted to the current environment. Our focus remains on cost-leadership and service to customers. The current period of de-stocking requires that we make appropriate production cuts to seek to rebalance supply and demand, and we are also accelerating efforts to pay down debt. ArcelorMittal, with its diversified business model, strong cash-flow and cost leadership position, is well placed to weather the challenging economic environment we currently face. We remain optimistic about the industry's medium-term growth prospects, but it is appropriate to pause our growth strategy until we have a more settled economic outlook."

ArcelorMittal press release