Unique Chicago skyscraper features ArcelorMittal steel sections
ArcelorMittal steel in new infrastructure for Brazil
ArcelorMittal reports fourth quarter 2015 and full year 2015 results
ArcelorMittal partner LanzaTech wins prestigious WEF Circular Economy award
ArcelorMittal steel brings Mont Saint-Michel back to life
An eye-catching new addition to the Chicago skyline will feature 2,530 tonnes of ArcelorMittal’s ASTM A913 grade 65 and 70 column sections.
The “150 N Riverside” – an unusual 54-storey office building that appears to stand on one “foot” – will feature steel columns made by ArcelorMittal Europe—Long Products’ Differdange mill in Luxembourg, the only producer of steel sections with these specifications.
Commissioned by Riverside Investment & Development and designed by architectural firm Goettsch Partners, with Magnusson Klemencic Associates as structural engineers, the skyscraper features 111,000 m² of rentable space and is located in one of the most prominent sites in the city – the south branch of the Chicago River.
Magnusson Klemencic Associates’ Robert A. Chmielowski said: “After discussing numerous options with our client and Clark Construction, ArcelorMittal’s products were determined to offer the most cost-effective approach for the structural system designed by Magnusson Klemencic Associates for this unique building.
“The larger sections and high-strength material provided the only ‘off-the-shelf’ sections that could resist the large forces”.
An unusual design
The building’s signature component is its unique design. With its vertical exterior columns seemingly terminating at level 8, the building has a significantly smaller base when compared to the typical floors above.
This special layout was required to accommodate the complexities of the building site. The project is located just metres away from the Chicago River at its east – and a rail yard that has been active for more than a century to the west.
The constraint of the railway, which made it impossible for the building’s exterior columns to extend to solid ground, pushed the design team to develop what is known as a core-supported framing plan.
The building was essentially designed as a typical office building from level 8 through to level 54 with an efficient, yet complex, transfer truss system that enables the weight of the building to be supported on its concrete core below level 8.
The core is then supported on a 3m deep concrete mat that transfers the load to a collection of 16 rock-socketed caissons below, each one having a 3m diameter.
The structural engineer – in cooperation with Zalk Josephs, the project’s fabricator – determined that incorporating 70 ksi steel sections into the design would lead to considerable savings in fabrication hours and cost.
Photo credits: Magnusson Klemencic Associates; Goettsch Partners, Inc.
ArcelorMittal is providing the foundations for new infrastructure in Brazil – from bridges, to housing developments in Santa Catarina and São Paulo.
Recent infrastructure projects featuring ArcelorMittal steel include the Açu Bridge in São João da Barra – in the state of Rio de Janeiro – and new residential developments across the country.
Cinara Wastowski, regional sales manager for construction, ArcelorMittal Brazil, said: “Our focus, and what distinguishes us from the competition in Brazil, is our ability to deliver complete structural solutions that eliminate those phases that don’t bring any value to our customer’s final product.
“As a result, ArcelorMittal construction solutions are safer, more cost-effective, and avoid material wastage – while allowing projects to be completed in shorter timeframes”.
Improving traffic flow in São João da Barra
ArcelorMittal has supplied 2,000 tonnes of steel – including rebar, cordage and steel pipe – for the Açu Bridge, which aims to improve downtown traffic flow in the city of Campos.
The 1,340m-long bridge will connect Açu Port to Highway 101 in São João da Barra, and is expected to be concluded in July this year.
Luxury living in Balneário Camboriú
ArcelorMittal will supply 750 tonnes of steel, including reinforced pile foundations, for the Phoenix Tower – a residential building in Balneário Camboriú.
The building will feature two apartments on each floor, as well as a large recreation area, a massage room and a cinema.
The work will last three years and the first apartments are to be delivered in March 2020.
New living space in Ribeirão Preto
A total of 1,000 tonnes of ArcelorMittal steel, including CA-50 and CA-60 rebars, will be used in the construction of the residential “Vila do Parque”– a series of residential tower units in Ribeirão Preto.
Located in one of the city’s most desirable neighbourhoods, the housing complex is being built by Construtora Habiarte Barc and will be completed in December, 2017.
Image credit: Habiarte, villasdoparque.com.br
February 5, 2016 - ArcelorMittal
(referred to as “ArcelorMittal” or the “Company”) (MT (New York, Amsterdam,
Paris, Luxembourg), MTS (Madrid)), the world’s leading integrated steel and
mining company, today announced results[i]
for the three and twelve month periods ended December 31, 2015.
The Company has continued to make
progress on its strategic objectives during 2015, including:
Action 2020 plan:
The Company has today published details
of its Action 2020 plan. The Action 2020 plan represents a strategic roadmap
for each of ArcelorMittal’s main business segments. The Action 2020 plan is
over and above the Company’s ongoing management gains plan and seeks to deliver
real structural improvements unique to ArcelorMittal’s business. The Action
2020 plan targets a return to >$85/t EBITDA absent any recovery in steel
spreads and raw materials prices from current levels. The Action 2020 plan
targets a further structural EBITDA improvement of approximately $3.0 billion.
Upon full achievement of the plan, the Company would expect to deliver free
cash flow in excess of $2.0 billion annually.
As indicated at 3Q 2015 results, a
combination of Company actions and known developments is expected to support
EBITDA in 2016 by $1.0 billion relative to the 4Q 2015 annual run-rate level.
Due to order book and the time lag required for lower raw material costs to
positively impact cost of sales, EBITDA is expected to sequentially decline in
1Q 2016. Based on the assumption of prevailing raw material costs and spot
steel spreads, the Company expects FY 2016 EBITDA to be in excess of $4.5
billion. This guidance does not capture any upside to current market
Reducing the cash
requirements of the business:
The Company targets a reduction of
the cash requirements of the business in 2016 by in excess of $1.0 billion as
compared to 2015. The components of this reduction include:
As a result, the level of EBITDA
required for free cash flow breakeven would reduce to $4.5 billion, thus
helping to ensure that the Company continues to generate positive free cash
flow, reduce net debt and maintain strong liquidity.
(on the basis of IFRS[i]):
Commenting, Mr. Lakshmi N. Mittal,
ArcelorMittal Chairman and CEO, said:
was a very difficult year for the steel and mining industries. Although
demand in our core markets remained strong, prices deteriorated significantly
during the year as a result of excess capacity in China. Throughout the
year we have rigorously focused on implementing a series of measures aimed at
reducing costs and ensuring the business is adapted for these tough market
conditions. As a result of these measures we succeeded in ending the year
with net debt slightly below the end of 2014 despite significantly lower
we have announced a disappointing net loss which includes non-cash impairment
charges on our mining assets as a result of the very considerable fall in the
iron-ore price. Our mining business is fully focused on adapting to this
low price environment and has reduced cash costs by 20% compared with an
initial target of 15%. A further 10% is targeted for 2016.
ahead, although we have started to see a recovery in Chinese steel spreads from
2015 lows, 2016 will be another difficult year for our industries. It is
clear that China has a challenge to restructure its steel industry for a lower
growth economy but we are somewhat encouraged by recent comments concerning
capacity closures. Until this situation is fully addressed the effective
and swift implementation of trade defence instruments will be critical and we
expect to see more positive rulings in this regard during the year.
priority is to ensure we deliver on our financial targets and strategic
projects. We have today announced a new strategic plan for the period to
2020 following a detailed analysis of performance improvement potential across
the group. “Action 2020” sets out specific targets for each business
segment which combined aim to achieve a further $3.0 billion of EBITDA
improvement potential and enable the business to generate $2.0 billion of
annual free cash flow.
net debt remains an important priority and given market conditions it is
prudent to take proactive steps to accelerate progress. We have today
announced the sale of our minority shareholding in Gestamp, and are taking
further steps to reduce net debt.
conclusion, there is no doubt these are challenging times but we are confident
that ArcelorMittal is taking all the right actions and has the right assets,
the right strategy and the right balance sheet to deliver on the targets
identified and cement our position as the world’s leading steel company.”
Fourth quarter 2015
earnings press conference call and webinar
ArcelorMittal management will
host a conference call and web presentation for members of the media outside
the US to discuss the three and twelve-month periods ended December 31, 2015
participants in countries not listed, you can reach the conference by dialling
conference call will include a brief question and answer session with senior
management. The presentation will be available via a live video webcast on corporate.arcelormittal.com.
quarter 2015 earnings analyst conference call
pre-recorded audio of the results presentation is available to listen to at the
following link: http://interface.eviscomedia.com/player/1085/index.html
ArcelorMittal management will host a Q&A session
for members of the investment community to discuss the three and twelve-month
periods ended December 31, 2015 on:
This document may contain forward-looking information
and statements about ArcelorMittal and its subsidiaries. These statements
include financial projections and estimates and their underlying assumptions,
statements regarding plans, objectives and expectations with respect to future
operations, products and services, and statements regarding future performance.
Forward-looking statements may be identified by the words “believe,” “expect,”
“anticipate,” “target” or similar expressions. Although ArcelorMittal’s
management believes that the expectations reflected in such forward-looking
statements are reasonable, investors and holders of ArcelorMittal’s securities
are cautioned that forward-looking information and statements are subject to
numerous risks and uncertainties, many of which are difficult to predict and
generally beyond the control of ArcelorMittal, that could cause actual results
and developments to differ materially and adversely from those expressed in, or
implied or projected by, the forward-looking information and statements. These
risks and uncertainties include those discussed or identified in the filings
with the Luxembourg Stock Market Authority for the Financial Markets (
de Surveillance du
Secteur Financier) and the United States Securities and
Exchange Commission (the “SEC”) made or to be made by ArcelorMittal, including
ArcelorMittal’s latest Annual Report on Form 20-F on file with the SEC.
ArcelorMittal undertakes no obligation to publicly update its forward-looking
statements, whether as a result of new information, future events, or
is the world's leading steel and mining company, with a presence in 60
countries and an industrial footprint in 19
countries. Guided by a philosophy to produce safe, sustainable steel, we are
the leading supplier of quality steel in the major global steel markets
including automotive, construction, household appliances and packaging, with
world-class research and development and outstanding distribution networks.
Through our core values of sustainability, quality and leadership,
we operate responsibly with respect to the health, safety and wellbeing of our
employees, contractors and the communities in which we operate.
For us, steel is the fabric of life, as it is at the heart of the
modern world from railways to cars and washing machines. We are actively
researching and producing steel-based technologies and solutions that make many
of the products and components people
everyday lives more energy efficient.
We are one of the world’s five largest producers of iron ore and
metallurgical coal and our mining business is an essential part of our growth
strategy. With a geographically diversified portfolio of iron ore and coal
assets, we are strategically positioned to serve our network of steel plants
and the external global market. While our steel operations are important
customers, our supply to the external market is increasing as we grow.
In 2015, ArcelorMittal had revenues of $63.6 billion and crude
steel production of 92.5 million tonnes, while own iron ore production reached
62.8 million tonnes.
ArcelorMittal is listed on the stock exchanges of New York (MT),
Amsterdam (MT), Paris (MT), Luxembourg (MT) and on the Spanish stock exchanges
of Barcelona, Bilbao, Madrid and Valencia (MTS).
For more information about ArcelorMittal please visit:
responsibility and safety performance
and safety - Own personnel and contractors lost time injury frequency rate
and safety performance based on own personnel figures and contractors lost time
injury frequency (LTIF) rate, improved to 0.81x for the twelve months of 2015
(“12M 2015”) as compared to 0.85x for the twelve months of 2014 (“12M 2014”),
with improvements within NAFTA, Brazil and Europe segments, offset by
deterioration in the ACIS and Mining segments.
and safety performance deteriorated to 0.83x in the fourth quarter of 2015 (“4Q
2015”) as compared to 0.78x for the third quarter of 2015 (“3Q 2015”) but
improved as compared to 0.89x for the fourth quarter of 2014 (“4Q 2014”).
Between 4Q 2015 and 3Q 2015, deterioration in the health and safety performance
of the Brazil, Europe and ACIS segments relative to 3Q 2015, was partially
offset by improvements in the Mining and NAFTA segments.
Company’s effort to improve the Group’s Health and Safety record continues and
remains focused on both further reducing the rate of severe injuries and
4Q 2015, ArcelorMittal launched a new flagship programme for health and safety
performance improvement in Europe segment “Take Care” training, to be rolled
out 60,000 employees. Following the successful adoption of the “Courageous
Leadership” training programme in the Mining segment, a similar program was
launched in the ACIS segment to improve health and safety performance.
personnel and contractors - Frequency rate
corporate responsibility highlights for 4Q 2015:
Analysis of results for
the twelve months ended December 31, 2015 versus results for the twelve months
ended December 31, 2014
Total steel shipments for 12M 2015 were 0.6% lower at
84.6 million metric tonnes as compared with 85.1 million metric tonnes for 12M
Sales for 12M 2015 decreased by 19.8% to $63.6 billion
as compared with $79.3 billion for 12M 2014, primarily due to lower average
steel selling prices (-19.7%), lower steel shipments (-0.6%) and lower seaborne
iron ore reference prices (-43%), offset in part by higher market priced iron
ore shipments (+1.4%).
Depreciation of $3.2 billion for 12M 2015 was lower as
compared to $3.9 billion for 12M 2014 primarily due to the impact of the US
dollar appreciation against all major currencies.
Impairment charges for 12M 2015 were $4.8 billion
Impairment charges for 12M 2014 were $264 million
which included $114 million primarily related to the idling of the steel shop
and rolling facilities of Indiana Harbor Long carbon operations in the US
(NAFTA); $63 million related to the write-down of the Volcan iron ore mine in
Mexico (Mining); and $57 million related to the closure of mill C in Rodange,
Exceptional charges for 12M 2015 were $1.4 billion
primarily including $1.3 billion inventory related charges following the rapid decline
of international steel prices and litigation and other costs in South Africa
($0.1 billion). Exceptional charges for 12M 2014 were nil.
Operating loss for 12M 2015 was $4.2 billion as
compared to operating income of $3.0 billion in 12M 2014. Operating results for
12M 2015 were primarily negatively impacted by the lower average steel selling
prices, the $4.8 billion impairment charges and $1.4 billion exceptional
charges discussed above. Operating results for 12M 2014 were negatively
impacted by $90 million following the settlement of US antitrust litigation
(NAFTA) and a $76 million provision related to onerous annual tin plate
contracts at Weirton in the US (NAFTA), offset by the positive impact from the
$79 million gain on disposal of Kuzbass coal mines in Russia (Mining).
Loss from investments in associates, joint ventures
and other investments in 12M 2015 was $502
million, as compared to a loss of $172
million in 12M 2014. The loss in 12M 2015 was primarily due to write-downs totalling $565 million primarily related
to the Company’s investments in the Kalagadi Manganese mining project in South
Africa ($0.3 billion) and Indian investee ($0.1 billion), in each case due to
downward revisions in projected cashflows and $0.1 billion related to the decrease
in market value of the investment in Erdemir, partially offset by income ($0.1 billion) generated from the share swap
with respect to Gerdau, Brazil[iii]. Loss from investments in associates, joint ventures
and other investments in 12M 2014 was
primarily due to a $621
million impairment loss on China Oriental following a revision of business
assumptions, partially offset by a $193
million gain from the sale of Gallatin and improved performance of European
investees and the share of profits of Calvert operations.
interest expense was lower at $1.3 billion in 12M 2015 as compared to $1.5
billion in 12M 2014. The reduction is attributable to lower average cost
resulting from debt repaid and raised during the year, partially offset by
increased interest costs following the ratings downgrades that occurred during
exchange and other net financing costs were lower at $1.6 billion for 12M 2015
as compared to $1.9 billion for 12M 2014. Foreign
exchange and other net financing costs for 12M 2015 include foreign exchange
loss of $697 million as compared to a loss of $620 million for 12M 2014, mainly
on account of a further 10% of USD appreciation against the Euro (versus 12%
appreciation in 12M 2014), a 32% appreciation against the Brazilian Real (versus
12% appreciation in 12M 2014) and a 46% devaluation of the tenge currency in
This foreign exchange loss is largely non-cash and primarily relates to the
impact of the USD appreciation on Euro denominated deferred tax assets
partially offset by foreign exchange gain on euro debt. Costs for 12M 2014
include expenses related to the termination of the Senegal greenfield project[v],
non-cash gains and losses on convertible bonds and hedging instruments that
matured during the period as well as charges related to the federal tax amnesty
plan in Brazil linked with the Siderbras case[vi].
ArcelorMittal recorded an income tax expense of $902
million for 12M 2015 as compared to income tax expense of $454 million for 12M
2014. The 12M 2015 income tax expense is negatively influenced by impairments
of deferred tax assets stemming from revisions to future taxable result
forecasts in some jurisdictions. Following the impairments of fixed assets and goodwill in the mining
and steel segments, as well as investments in associates and joint ventures, the Company has potential tax benefits of $1.3 billion
(of which $0.1 billion is recognized immediately and $1.2 billion is
recognizable in future periods upon availability of positive taxable income
projections above the already recorded level of group deferred tax assets).
Non-controlling interests for 12M 2015 were an income
of $477 million, as compared to a charge of $112 million for 12M 2014. Non-controlling interests for 12M 2015 primarily
related to losses generated by ArcelorMittal South Africa and Liberia resulting
from the impairment of assets as described above. Non-controlling interests
charges for 12M 2014 primarily relate to minority shareholders’ share of net
income recorded in ArcelorMittal Mines Canada and Belgo Bekaert Arames in
ArcelorMittal’s net loss for 12M 2015 was $7.9 billion,
or $4.43 loss per share, as compared to net loss for 12M 2014 of $1.1 billion,
or $0.61 loss per share. Adjusted net loss for 12M 2015 was $0.3 billion as
compared to adjusted net income in 12M 2014 of $0.4 billion.
Analysis of results for
4Q 2015 versus 3Q 2015 and 4Q 2014
Total steel shipments for 4Q 2015 were 6.3% lower at
19.7 million metric tonnes as compared with 21.1 million metric tonnes for 3Q
2015 (primarily due to lower shipments in NAFTA (-18.5%)), and 6.8% lower as
compared to 21.2 million metric tonnes for 4Q 2014 (primarily due to lower
volumes in NAFTA (-21.1%)).
Sales for 4Q 2015 were $14.0 billion as compared to
$15.6 billion for 3Q 2015 and $18.7 billion for 4Q 2014. Sales in 4Q 2015, were
10.3% lower as compared to 3Q 2015 primarily due to lower average steel selling
prices (-7.2%), lower steel shipments (-6.3%), lower iron ore reference prices
(-15%) and lower market priced iron ore shipments (-4.3%). Sales in 4Q 2015
were 25.3% lower as compared to 4Q 2014 due to lower average steel selling
prices (-22.6%), lower steel shipments (-6.8%) and lower iron ore references
was $807 million for 4Q 2015 as compared to $777 million in 3Q 2015, and was
lower as compared to $982 million for 4Q
2014, primarily on account of foreign
exchange impact following the appreciation of the US dollar against major
Impairment charges for 4Q 2015 were $4.7 billion
including $0.9 billion with respect to the Mining segment goodwill and $3.8
billion primarily related to fixed assets as discussed above. Impairment
charges for 3Q 2015 were $27 million relating to the closure of Vereeniging
meltshop in South Africa. Impairment
charges for 4Q 2014 of $264 million included $114 million primarily related to
the idling of the steel shop and rolling facilities of Indiana Harbor Long
carbon operations in the US (NAFTA); $63 million related to write-down of the
Volcan iron ore mine in Mexico (Mining); and $57 million related to the closure
of mill C in Rodange, Luxembourg (Europe).
Exceptional charges for 4Q 2015 were $0.9 billion.
These primarily include $0.8 billion inventory related charges following the
rapid decline of international steel prices and litigation and other costs in
South Africa ($0.1 billion). Exceptional charges for 3Q 2015 were $527 million,
including $0.5 billion related to the write-down of inventory and $27 million of retrenchment costs in South Africa. Exceptional charges for 4Q 2014 were nil.
Operating loss for 4Q 2015 was $5.3 billion, as
compared to operating income of $20 million in 3Q 2015 and operating income of
$569 million in 4Q 2014. Operating results for 4Q 2015 and 3Q 2015 were
impacted by impairments and exceptional charges discussed above. Operating results
for 4Q 2014 were negatively impacted by a $76 million provision related to
onerous annual tin plate contracts at Weirton in the US (NAFTA), offset by the
positive impact from the $79 million gain on disposal of Kuzbass coal mines in
from investments in associates, joint ventures and other investments for 4Q
2015 was $655 million as compared to income in 3Q 2015 of $30 million. The loss
in 4Q 2015 was primarily due to
totalling $608 million primarily related to the Company’s investments in the
Kalagadi Manganese mining project in South Africa ($0.3 billion) and Indian
investee ($0.1 billion) due to downward revisions in projected cash flows, and
$0.1 billion related to the decrease in market value of the investment in
Erdemir. Loss from investments in
associates, joint ventures and other investments in 4Q 2014 was negatively impacted by a $621 million impairment loss on China Oriental following a revision of
business assumptions, partially offset by
a $193 million gain on the sale of Gallatin as well as improved performance of
European investees and the share of profits of Calvert operations.
interest expense in 4Q 2015 was stable at $312 million as compared to $318
million in 3Q 2015 and $322 million in 4Q 2014.
Foreign exchange and other net financing costs were
$342 million for 4Q 2015 as compared to $409 million for 3Q 2015 and $549
million for 4Q 2014. Foreign exchange and other net financing costs for 4Q 2015
include a foreign exchange loss of $104 million as compared to a loss of $170
million for 3Q 2015 mainly on account of a further 2.8% USD appreciation
against the Euro, a 20.3% devaluation of tenge currency in Kazakhstan[iv]
and a 27.7% devaluation of Argentine pesos after
currency controls lifted. This foreign exchange loss is largely non-cash and
primarily relates to the impact of the USD appreciation on Euro denominated
deferred tax assets partially offset by foreign exchange gain on euro debt.
Foreign exchange and other net financing costs for 4Q 2014 includes foreign
exchange losses of $316 million.
recorded an income tax expense of $441 million for 4Q 2015, as compared to an
income tax expense of $127 million for 3Q 2015 and income tax expense of $258
million for 4Q 2014. The higher tax expense in 4Q 2015 results mainly from
impairments of deferred tax assets stemming from lower future taxable result
Non-controlling interests for 4Q 2015 were an income of $395 million as
compared to income of $93 million in 3Q 2015, and charge of $15 million in 4Q
2014. Non-controlling interests for 4Q 2015 primarily related to South Africa
and Liberia resulting from the impairment of the assets as described above.
ArcelorMittal recorded net loss for 4Q
2015 of $6.7 billion, or $3.72 loss per share, as compared to a net loss of
$711 million, or $0.40 loss per share for 3Q 2015, and net loss of $955
million, or $0.53 loss per share for 4Q 2014.
ArcelorMittal recorded adjusted net loss
for 4Q 2015 of $0.4 billion, as compared to an adjusted net loss of $0.1
billion for 3Q 2015 and adjusted net income of $0.1 billion for 4Q 2014.
The following tables summarize the
Company’s principal growth and optimization projects involving significant
Completed projects in
most recent quarters
a) Though the Monlevade wire rod expansion project and
Juiz de Fora rebar expansion were completed in 2015, and Juiz de Fora meltshop
is expected to be completed in 2017, the Company does not expect to increase
shipments until domestic demand improves.
b) First production in Baffinland was in 4Q 2014, with
first shipments taking place during 3Q 2015 following the completion of
shiploader and port infrastructure.
c) On July 7, 2015, ArcelorMittal Poland announced it
will restart preparations for the relining of blast furnace No. 5 in Krakow,
which is coming to the end of its lifecycle in mid-2016. Total investments in
the primary operations in the Krakow plant will amount to PLN 200 million (more
than €40 million), which also includes modernization of the basic oxygen
furnace No. 3. Additional projects in the downstream operations will also be
implemented. These include the extension of the hot rolling mill capacity by
0.9 million tons per annum and increasing the hot dip galvanizing capacity by
0.4 million tons per annum. The capex value of those two projects exceeds PLN
300 million (€90 million) in total. In total, the group will invest more than
PLN 500 million (more than €130 million) in its operations in Krakow, including
both upstream and downstream installations.
d) ArcelorMittal remains committed to Liberia where it
operates a full value chain of mine, rail and port. It has been operating the
mine on a DSO basis since 2011 and produced 4.3Mt in 2015. In the current
initial DSO phase, significant cost reduction and re-structuring has continued
to ensure competitiveness at current prices. Drilling for DSO resource
extension recently commenced and in 2016 the operation has been right sized to
3mtpa to focus on its ‘natural’ Atlantic markets. This repositioning for size and
competitiveness also extends the life of the DSO phase as ArcelorMittal
considers the appropriate next phase of development.
previously announced a Phase 2 project that envisaged the construction of 15
million tonnes of concentrate sinter fines capacity and associated
infrastructure. The phase 2 project was initially delayed due to the
declaration of force majeure (FM) by contractors in August 2014 due to the
Ebola virus outbreak in West Africa. Whilst rapid price declines over the period
since force majeure have led to a reassessment of the project, ArcelorMittal is
considering transitioning production to a higher grade sinter fines product but
now in a phased approach as opposed to a major step up from 15 to 20mtpa as
originally envisaged in phase 2. Extensive tonnage of concentrator feed
material is already exposed in readiness for a concentrated sinter fines, and
ArcelorMittal also has options in its concession to mine higher grade, lower
gangue DSO ores. Work continues in 2016 to define the best business option.
Analysis of segment operations
NAFTA segment crude steel production decreased 14.1%
to 5.1 million tonnes in 4Q 2015 as compared to 6.0 million tonnes for 3Q 2015.
Steel shipments in 4Q 2015 decreased 18.5% to 4.6
million tonnes as compared to 5.6 million tonnes in 3Q 2015, primarily driven
by a 19.6% decrease in flat product steel
shipments (mainly Mexico and US) and 13.0% decrease in long product shipment
Sales in 4Q 2015 decreased by 17.6% to $3.6 billion as
compared to 3Q 2015, primarily due to lower steel shipment volumes as discussed
above, offset by higher average steel selling prices (due
to a mix effect a lower percentage of slab shipments from the Mexican
EBITDA in 4Q 2015 decreased 19.6% to $273 million as
compared to $340 million in 3Q 2015
primarily due to lower steel volumes partially offset by a better product mix
of sales (noted above), lower costs and improved performance in Calvert. EBITDA in 4Q 2015 declined 20% as compared to 4Q 2014
primarily due to a negative price-cost squeeze resulting from significantly lower average steel selling prices (-14.3%) with
declines in both flat (-13.4%) and long products (-23.2%), as well as lower
steel shipment volumes (-21.1%) for both flat (-21.9%) and long products
Operating performance in 4Q 2015 was impacted by
impairments totalling $507 million with
respect to the intended sale of Long Carbon facilities in the US (ArcelorMittal
LaPlace, Steelton and Vinton) ($0.2 billion), and following planned asset
optimization at Indiana Harbor East and West in the US ($0.3 billion). In
addition, operating performance in 4Q 2015 and 3Q 2015 was impacted by exceptional inventory related charges of $353 million
and $101 million, respectively, following the rapid decline of steel prices. Operating performance in 4Q 2014 was impacted by
impairments of $114 million primarily related to the idling of the steel shop
and rolling facilities of Indiana Harbour Long carbon operations in the US.
Brazil segment crude steel production
decreased 3.5% to 2.9 million tonnes in 4Q 2015 as compared to 3.0 million
tonnes in 3Q 2015.
shipments in 4Q 2015 decreased by 8.1% to 2.9 million tonnes as compared to 3Q
2015, primarily due to a 4.5% decrease in flat steel shipments and a 13.5%
decrease in long product shipments due to a continued slowdown in demand.
Sales in 4Q 2015 decreased by 1.6% to $2.1 billion as
compared to 3Q 2015, due to lower average
steel selling prices (-9.3%), and lower steel shipments discussed above.
EBITDA in 4Q 2015 declined by 42.1% to $181 million as
compared to $313 million in 3Q 2015 on
account of lower average steel selling prices (primarily flat steel products
-11.2%) and lower steel shipment volumes.
EBITDA in 4Q 2015 was 66.8% lower as compared to 4Q 2014 primarily due to lower
average steel selling prices (-28.7%) and lower steel shipments (-0.7%).
Operating performance in 4Q 2015 was impacted by
impairment of $176 million related to Point
Lisas (Trinidad and Tobago) currently idled, and exceptional charges of $52 million
relating to inventory write down in Point Lisas. Operating performance in 3Q 2015 was impacted by exceptional charges of
$39 million relating to the write-down of inventories following the rapid
decline of steel prices.
Europe segment crude steel production decreased by
8.2% to 10.0 million tonnes in 4Q 2015, as compared to 3Q 2015.
Steel shipments in 4Q 2015 decreased by 1.8% to 9.5
million tonnes as compared to 3Q 2015, primarily due to a 4.5% decrease in
flat product shipment volumes, offset in part by a 4.8% increase in long steel
Sales in 4Q 2015 declined 7.8% to $7.1
billion as compared to 3Q 2015, primarily due to lower average steel selling
prices (noted below) and lower steel shipments as discussed above. Average
steel selling prices declined by 7.4% during 4Q 2015, as flat and long products
declined 5.9% and 11.4%, respectively.
EBITDA in 4Q 2015
decreased by 1.6% to $544 million as compared to $553 million in 3Q 2015,
mainly driven by lower steel shipment volumes and lower average steel selling
prices offset in part by lower raw material costs, lower maintenance costs and
continuing cost reduction efforts. EBITDA in 4Q 2015 declined by 2.3% as compared to
4Q 2014 primarily on account of lower average steel selling prices (-21.2%) and
lower steel shipments (-1.4%), offset in part by lower costs and efficiency
Operating performance in 4Q 2015 was impacted by
impairments of $398 million primarily in connection with the idling for an
indefinite time of the ArcelorMittal Sestao plant in Spain. Operating
performance in 4Q 2015 and 3Q 2015 was also impacted by exceptional charges of $345
million and $287 million, respectively, relating to the write-down of
inventories following the rapid decline of steel prices. Operating performance
in 4Q 2014 was impacted by impairment charges of $57 million related to the
closure of mill C in Rodange, Luxembourg.
ACIS segment crude steel production in 4Q 2015
increased by 12.5% to 3.7 million tonnes as compared to 3Q 2015 primarily
driven by increased production in Ukraine following the repair of blast furnace
#9 during the fourth quarter of 2015.
Steel shipments in 4Q 2015 decreased by 3.7% to 3.1
million tonnes as compared to 3Q 2015. Lower steel shipments in South Africa
and Kazakhstan were offset in part by higher Ukrainian shipments.
Sales in 4Q 2015 decreased by 17.1% to $1.3 billion as
compared 3Q 2015, primarily due to lower average steel selling prices (-14.4%)
and lower steel shipments as discussed above. Average steel prices were lower
following the fall in international prices and currency devaluations in the
EBITDA in 4Q 2015 of $61 million was higher as
compared to $35 million in 3Q 2015, reflecting improvement primarily in
Kazakhstan following the devaluation of the Kazakhstan tenge. EBITDA in 4Q 2015
of $61 million was lower as compared to
$147 million in 4Q 2014, primarily due to lower average steel selling prices
(-35.2%) with weaker performance in South Africa and Ukraine offset in part by
improvement in Kazakhstan following currency devaluation.
Operating performance in 4Q 2015 was impacted by
impairments of $267 million primarily with
respect to the Saldanha plant in South Africa due to its revised competitive
outlook, and exceptional charges of $159
million primarily relating to a deferred stripping prepayment[viii],
a provision in relation to competition cases in South Africa[ix] and the write-down of inventories following the rapid decline of steel prices.
Operating performance in 3Q 2015 was impacted by impairment charges of $27 million related to the closure of Vereeniging
meltshop in South Africa, and exceptional
charges of $80 million relating to the write-down of inventories following the
rapid decline of steel prices and to retrenchment costs in Thabazimbi and
Tshikondeni in South Africa for $27 million.
Own iron ore and coal production not including strategic long-term contracts.
Iron ore and coal shipments of market-priced based materials include the
Company’s own mines, and share of production at other mines, and exclude
supplies under strategic long-term contracts.
Own iron ore production (not including supplies under
strategic long-term contracts) in 4Q 2015 increased by 1.1% to 15.5 million
metric tonnes as compared to 3Q 2015, due to higher production in Canada (following planned maintenance in the third
quarter) offset in part by lower production at both Las Truchas and Volcan
Mines in Mexico. Own iron ore production (not including supplies under
strategic long-term contracts) was lower by 7.2% as compared to 4Q 2014
primarily due to lower production in Mexico and Liberia.
priced iron ore shipments in 4Q 2015 decreased by 4.3% to 9.9 million metric tonnes as compared to 3Q 2015 primarily driven by
lower shipments in Mexico. Market priced iron ore shipments in 4Q 2015
decreased by 0.5% as compared to 4Q 2014 driven by
decreased shipments in Mexico and Liberia offset in part by higher shipments in
Canada (following operational efficiency gains).
Own coal production (not including
supplies under strategic long-term contracts) in 4Q 2015 decreased 12.1% to 1.4
million metric tonnes as compared to 3Q 2015, primarily due to lower production
in both US and Kazakhstan operations. Own coal production (not including
supplies under strategic long-term contracts) in 4Q 2015 decreased 15.9% as
compared to 4Q 2014, primarily due to lower production at both US and
EBITDA in 4Q 2015 decreased to $90 million as compared
to $143 million in 3Q 2015 primarily due to lower market priced iron ore
shipment volumes (-4.3%) and to lower seaborne iron ore market prices (-15%),
offset in part by improved costs performance. EBITDA in 4Q 2015 was 61.4% lower as compared to 4Q 2014, primarily due
to lower seaborne iron ore market prices (-37%), partially offset by lower unit
iron ore cash costs and restructuring of our coal operations, including the
sale of Kuzbass mines.
Operating performance in 4Q 2015 was impacted by
impairments of $3.4 billion including
$0.9 billion with respect to goodwill and $2.5 billion primarily related to
fixed assets, in respect of iron ore mining operations at ArcelorMittal Liberia
($1.4 billion), Las Truchas in Mexico ($0.2 billion), ArcelorMittal Serra Azul
in Brazil ($0.2 billion) and coal mining operations at ArcelorMittal
Princeton in the United States ($0.7 billion) mainly due to a downward revision
of cash flow projections relating to the expected persistence of a lower
raw material price outlook. Operating
performance in 4Q 2014 was impacted by impairments of $63 million related to
the Volcan mine.
Liquidity and Capital Resources
For 4Q 2015, net cash provided by operating activities
was $1,574 million as compared to $473 million in 3Q 2015. Net cash provided by
operating activities in 4Q 2015 included a $919 million release of operating
working capital as compared to a $136 million investment in operating working
capital in 3Q 2015. Rotation days during 4Q 2015 decreased to 50 days as
compared to 54 days in 3Q 2015.
Other operating activities in 4Q 2015 for $900 million
primarily included the reversal of the non-cash impairments and losses recorded
on the company’s investments and unrealized foreign exchange losses. Other
operating activities in 4Q 2014 was $889 million (including the reversal of
non-cash items related to unrealized forex losses, income tax accruals,
impairment on China Oriental partially offset by reversals of gains from
disposal of Gallatin and Kuzbass).
Net cash used in investing activities
during 4Q 2015 was $646 million as compared to $649 million in 3Q 2015 and $492
million in 4Q 2014.
Capital expenditure increased to $736
million in 4Q 2015 as compared to $684 million in 3Q 2015, but was lower as
compared to $1,067 million in 4Q 2014. FY 2015 capital expenditure was $2.7
billion which was significantly lower than $3.7 billion for FY 2014.
Cash flow from other investing activities
in 4Q 2015 of $90 million primarily consisted of proceeds from the partial
disposal of the Company’s stake in Stalprodukt and disposal of tangible assets.
Cash flow from other investing activities in 3Q 2015 of $35 million primarily
includes proceeds from the Gerdau share swap[iii]
and sale of tangible assets offset by a $39 million outflow relating to the
final instalment of the acquisition price of an additional 11% stake in Ostrava
acquired in 2009. Cash flow from other investing activities in 4Q 2014 of $575
million primarily included the cash inflow from the divesture of Gallatin for
$389 million and a $108 million inflow from the exercise of the 3rd
put option on Hunan Valin shares[x]
and proceeds from the sale of tangible assets.
Net cash used in financing activities for
4Q 2015 was $367 million as compared to $835 million in 3Q 2015 and $1,926
million for 4Q 2014. Net cash used in financing activities in 4Q 2015 primarily
included the early redemption of the $500 million 3.75% notes due March 2016.
Net cash used in financing activities in 3Q 2015 primarily included debt
repayment of a $1 billion loan partially offset by issuance of CHF 225 million
2.50% Notes due July 3, 2020, under ArcelorMittal’s Euro Medium Term Notes
Programme. Net cash used in financing activities for 4Q 2014 primarily included
debt repayment totalling $1.25 billion of the 9.0% Notes due February 15, 2015
($750 million) and 3.750% Notes due February 25, 2015 ($500 million) prior to
their scheduled maturity and €360 million bond repayment.
During 4Q 2015, the Company paid $11
million in dividends primarily to minority shareholders in Brazil (Bekaert).
During 3Q 2015, the Company paid $21 million in dividends primarily to minority
shareholders in ArcelorMittal Mines Canada. During 4Q 2014, the Company paid
$15 million in dividends primarily to minority shareholders in Brazil (Bekaert).
At December 31, 2015, the Company’s cash and cash
equivalents (including restricted cash and short-term investments) amounted to
$4.1 billion as compared to $3.6 billion at September 30, 2015.
Gross debt of $19.8 billion at December 31, 2015, decreased
from $20.4 billion at September 30, 2015 and was lower than $19.9 billion at
December 31, 2014.
As of December 31, 2015, net debt decreased to $15.7
billion as compared with $16.8 billion in September 30, 2015, and lower as
compared to $15.8 billion as December 31, 2014.
The Company had liquidity of $10.1 billion at December
31, 2015, consisting of cash and cash equivalents (including restricted cash
and short-term investments) of $4.1 billion and $6.0 billion of available
credit lines. The $6 billion credit facility contains a financial covenant of
4.25x Net debt / EBITDA. On December 31, 2015, the average debt maturity was
3-year $3 billion
management gains program
During the investor day held on March 15, 2013, the Company announced a
management gains improvement target of $3 billion by the end of 2015. Action
plans and detailed targets had been set at the various business units
targeting cost savings related to reliability, fuel rate, yield and
productivity with two thirds of costs targeted being variable costs. The
Company has achieved its $3 billion target of annualized cost improvement by
the end of 2015.
Key recent developments
ArcelorMittal will also take the
opportunity to simplify the management structure in-line with the ongoing drive
to promote a performance-driven culture, empowering the segments to deliver
optimum business results. As a result the Group Management Board, which
was established to ensure a smooth integration following the creation of
ArcelorMittal, will be replaced with a more flexible structure. The CEO office
- comprising the CEO and CFO - will work directly with a team of seven
executive officers, who collectively encompass the key regions and corporate
The executive officers are as follows:
Senior executive vice president Davinder
Chugh Senior executive vice president, CEO of Africa and the CIS
Executive vice president Brian
Aranha Head of strategy, CTO, R&D, CCM and global
Executive vice president Jim
Baske CEO ArcelorMittal Nafta Flat Rolled
Executive vice president Henri
Blaffart Group head of HR and corporate services
Executive vice president Jefferson
de Paula CEO of ArcelorMittal South America Long
Executive vice president Geert
van Poelvoorde CEO of ArcelorMittal Europe Flat
Executive vice president Simon
Wandke CEO of ArcelorMittal Mining
Outlook and guidance
to ArcelorMittal’s estimates, global apparent steel consumption (“ASC”)
declined by 2.2% in 2015 as compared to 2014. ArcelorMittal expects
stabilization in 2016. By region: Driven by a significant destock, ASC in the
US declined by 9.6% in 2015. However, underlying demand continues to expand and
due to the expected absence of a further destock in 2016, ASC in the US is
expected grow by +3% to 4% above 2015 levels, despite an expected further
decline in Oil Country Tubular Goods demand. ArcelorMittal expects the pick-up
in underlying European demand to continue but apparent demand is expected to be
modest at +0% to +1% in 2016 (versus growth of 3.4% in 2015) as the high level
of imports in 4Q 2015 have raised inventory levels particularly in Southern
Europe. Despite declining 15.6% in 2015, Brazil ASC is expected to decline
further, albeit slower at -6% to -7% in 2016 as the economy remains mired in
recession. With the ongoing recession in Russia impacted by weak oil prices,
CIS demand is expected to decline -5% to -6% (versus a decline of 8.0% in
2015). In China, we expect ongoing weakness in the real estate sector to have a
negative impact, and expect steel demand decline of around -1% (from -4.3%
decline in 2015).
indicated at 3Q 2015 results, a combination of Company actions and known
developments is expected to support EBITDA in 2016 by $1.0 billion relative to
the 4Q 2015 annual run-rate level. Due to order book and the time lag required
for lower raw material costs to positively impact cost of sales, EBITDA is
expected to sequentially decline in 1Q 2016. Based on the assumption of
prevailing raw material costs and spot steel spreads, the Company expects FY
2016 EBITDA to be in excess of $4.5 billion. This guidance does not capture any
upside to current market conditions.
Company also targets reducing the cash requirements of the business in 2016 in
excess of $1 billion as compared to 2015. The components of this reduction are:
lower capex spend (FY 2016 capex is expected to be approximately $2.4 billion
as compared to $2.7 billion in FY 2015), lower interest expenses (FY 2016 net
interest is expected to be approximately $1.1 billion as compared to $1.3
billion in FY 2015); no dividend in respect of the 2015 financial year; and
lower cash taxes.
result, the level of EBITDA required for free cash flow breakeven would reduce
to $4.5 billion, thus helping to ensure that the Company continues to generate
positive free cash flow, reduce net debt and maintain strong liquidity.
Consolidated Statements of Financial Position[i]
Consolidated Statement of Operations[i]
Condensed Consolidated Statements of Cash flows[i]
Appendix 1: Product shipments by
Others and eliminations line are not presented in the table
Appendix 2: Capital expenditures
Note: Others and eliminations line are not presented
in the table
Appendix 3: Debt repayment schedule as
of December 31, 2015
Appendix 4: Credit lines available as
of December 31, 2015
Appendix 5: Reconciliation of net loss
to adjusted net (loss)/ income
* Adjustment of foreign exchanges net charges and other financials charges for
12M 2015 of $697 million as described earlier in the analysis of results.
Adjustment of foreign exchanges net charges and other financials charges of
12M 2014 also includes the charges related to the federal tax amnesty plan in
Brazil linked with the Siderbras case[vi].
Appendix 6: Terms and definitions
Unless indicated otherwise, or the
context otherwise requires, references in this earnings release report to the
following terms have the meanings set out next to them below:
time injury frequency rate equals lost time injuries per 1,000,000 worked
hours, based on own personnel and contractors.
operating income plus depreciation, impairment expenses and exceptional
Free cash flow:
net cash provided by operating activities less purchases of property,
plant and equipment and intangibles.
long-term debt, plus short term debt, less cash and cash equivalents,
restricted cash and short-term investments (including those held as part of
assets/liabilities held for sale).
long-term debt, plus short term debt, plus cash and cash equivalents,
restricted cash and short-term investments (including those held as part of
assets/liabilities held for sale).
Market priced tonnes:
represent amounts of iron ore and coal from
ArcelorMittal mines that could be sold to third parties on the open market.
Market priced tonnes that are not sold to third parties are transferred from
the Mining segment to the Company’s steel producing segments and reported at
the prevailing market price. Shipments of raw materials that do not
constitute market priced tonnes are transferred internally and reported on a
exchange and other net financing costs:
include foreign currency swaps, bank fees, interest on pensions,
impairments of financial instruments and revaluation of derivative
instruments, and other charges that cannot be directly linked to operating
steel selling prices:
steel sales divided by steel shipments.
Mining segment sales:
i) “External sales”: mined product sold to third
parties at market price; ii) “Market-priced tonnes”: internal sales of mined
product to ArcelorMittal facilities and reported at prevailing market prices;
iii) “Cost-plus tonnes” - internal sales of mined product to ArcelorMittal
facilities on a cost-plus basis. The determinant of whether internal sales
are reported at market price or cost-plus is whether the raw material could
practically be sold to third parties (i.e. there is a potential market for
the product and logistics exist to access that market).
days of accounts receivable plus days of inventory minus days of
accounts payable. Days of accounts payable and inventory are a function of
cost of goods sold of the quarter on an annualized basis. Days of accounts
receivable are a function of sales of the quarter on an annualized basis.
Operating working capital:
trade accounts receivable plus inventories less
trade accounts payable.
includes the acquisition of intangible assets (such as concessions for mining
and IT support) and includes payments to fixed asset suppliers.
iron ore reference prices:
to iron ore prices for 62% Fe CFR China.
Own iron ore production:
Includes total of all finished production of fines,
concentrate, pellets and lumps (excludes share of production and strategic long-term contracts).
Refer to projects for which construction has begun (excluding various
projects that are under development), even if such projects have been placed
on hold pending improved operating conditions.
calculated as EBITDA divided by total steel shipments.
calculated as EBITDA less Mining segment EBITDA.
calculated as steel-only EBITDA divided by total
Iron ore unit cash cost:
includes weighted average pellet and concentrate
cost of goods sold across all mines.
includes back-up lines for the commercial paper program.
information at the Group level was previously based on a simple aggregation,
eliminating intra-segment shipments and excluding shipments of the
Distribution Solutions segment. The new presentation of shipments
information eliminates both inter- and intra–segment shipments which are
primarily between Flat/Long plants and Tubular plants and continues to
exclude the shipments of Distribution Solutions.
The NAFTA segment
includes the Flat, Long and Tubular operations of USA, Canada and Mexico. The
Brazil segment includes the Flat operations of Brazil, and the Long and
Tubular operations of Brazil and its neighboring countries including
Argentina, Costa Rica, Trinidad and Tobago and Venezuela. The Europe segment
comprises the Flat, Long and Tubular operations of the European business, as
well as Distribution Solution (AMDS). The ACIS division includes the Flat,
Long and Tubular operations of Kazakhstan, Ukraine and South Africa.
: Refers to year-on-year
The family of Fortiform® steels extends ArcelorMittal's range of Ultra High
Strength Steels (UHSS). These steels allow the realization of lightweight
structural elements by a cold forming method such as stamping. These Ultra
High Strength Steels of third generation are used to provide additional
weight reduction thanks to their higher mechanical properties than
conventional Advanced High Strength Steels (AHSS) while keeping the same
information in this press release has been prepared consistently with
International Financial Reporting Standards (“IFRS”) as issued by the
International Accounting Standards Board (“IASB”). The interim financial
information included in this announcement has been also prepared in accordance
with IFRS applicable to interim periods, however this announcement does not
contain sufficient information to constitute an interim financial report as
defined in International Accounting Standards 34, “Interim Financial
Reporting”. The numbers in this press release have not been audited. The
financial information and certain other information presented in a number of
tables in this press release have been rounded to the nearest whole number or
the nearest decimal. Therefore, the sum of the numbers in a column may not
conform exactly to the total figure given for that column. In addition, certain
percentages presented in the tables in this press release reflect calculations
based upon the underlying information prior to rounding and, accordingly, may
not conform exactly to the percentages that would be derived if the relevant
calculations were based upon the rounded numbers. This press release also
includes certain non-GAAP financial measures.
[ii]The exceptional charge
of $909 million in 4Q 2015 relates to write-down of inventory following the
rapid decline of international steel prices. The Company tested the
recoverability of its inventories by comparing the production cost with the
estimated selling prices for finished goods. Inventories under work in progress
and raw materials were similarly tested after estimating the completion costs.
Net realizable value is the estimated selling price in the ordinary course of
business less the estimated cost of completion and the estimated costs
necessary to complete the sale. The exceptional charge of $527 million in 3Q
2015 includes $27 million of retrenchment costs in South Africa as well as $0.5
billion related to such write-down of inventory.
[iii]On July 14, 2015,
ArcelorMittal entered into a share swap agreement with Gerdau, as part of which
ArcelorMittal received preferred shares of Gerdau and a cash consideration of
$28 million in exchange for unlisted Gerdau shares. The share swap resulted in
a gain of $55 million from equity method investments and other investments.
its currency (the tenge) by abandoning a peg to the US dollar.
[v]In 3Q 2013,
ArcelorMittal impaired the entire amount of the investment that it had made up
to September 30, 2013 in connection with a 2007 agreement with the State of
Senegal regarding a mining and infrastructure project, as it viewed project
implementation to be improbable in light of an ongoing arbitration proceeding.
The parties subsequently agreed to settle the dispute and on December 12, 2014,
the arbitral tribunal issued a procedural order formally closing the
S.A (as a successor of Companhia Siderurgica Tubarao) was party to a legal
dispute against Siderbras (an extinguished holding company held by the
Government of Brazil) related to financial debt issued in 1992. In July 2014,
the judge in charge requested to replace the guarantee, which was securing the
litigation, with cash so that an appeal of the case could proceed.
ArcelorMittal Brasil S.A entered into a federal amnesty program with the
Brazilian tax authorities to settle the debt with Siderbras (application made
in August 2014). The payment under the program was $161 million (original debt
$259 million including interest and penalties) and recorded as a financial
expense. Of this amount, $116 million was paid by way of set-off of tax losses
and the remaining balance paid in cash. This tax amnesty program entered into
by the Company with the Brazilian tax authorities is only in relation to the
Siderbras matter and does not have any effect or otherwise impact the Company’s
other outstanding disputes with the Brazilian tax authorities, which have been
January 1, 2015, the functional currency of Kryvyi Rih was changed to the
Ukrainian Hryvnia and the functional currency of Temirtau was changed to the
Kazakhstan tenge due to changes in the regulatory and economic environment and
transaction currencies of the operations.
[viii]Under the draft
amended agreement, between Sishen Iron ore Company Pty) Ltd and ArcelorMittal
South Africa the latter will pay market price (EPP) for iron ore and will
therefore no longer contribute towards stripping costs. Accordingly at December
31, 2015, the “deferred stripping pre-payment asset” was derecognised and
written off through profit and loss.
[ix]As reported in prior
periods, and dating back to 2007, the Competition Commission (“the Commission”)
has referred five cases to the Competition Tribunal and is formally
investigating one further complaint against ArcelorMittal South Africa. The
Company has since engaged with the Commission and has made significant progress
regarding a possible overall settlement and is in the process of finalizing a
detailed settlement agreement. Whilst the draft settlement agreement is still
subject to final approval by the Commission and the Competition Tribunal, a
provision of R1,245 million representing the present value of a proposed
administrative penalty of R1,500 million has been recognized. The Company has,
subject to certain conditions being agreed upon with the Commission, proposed
to pay the administrative penalty over a period of 5 years subject to
[x]Following the sale of a 5% stake to Valin
Group as a result of the exercise of the third put option on February 2014, the
Company’s interest in Hunan Valin decreased from 20% to 15%. On August 6, 2014,
the Company exercised the fourth and final instalment, which subsequently led
to the decrease in its stake in Hunan Valin from 15% to 10%. The Company
received cash from the third and fourth instalment of $108 million both in the
fourth quarter of 2014 and first quarter of 2015, respectively.
[xi]Following the sale of Gestamp, the future
income from associates, joint ventures and other investments will be reduced by
approximately $50 million and the future dividend income will reduce by
approximately $15 million (based on the average income and dividends derived
from Gestamp over the past two years).
[xii]Assets and liabilities held for sale as of
December 31, 2015 include the carrying value of ArcelorMittal Algeria
(investment stake of 49%), ArcelorMittal Tebessa (investment stake of 49%),
ArcelorMittal Pipes and Tubes Algeria (70% control), the USA long product
facilities at Steelton, Vinton and ArcelorMittal LaPlace and some activities of
ArcelorMittal downstream solutions in the Europe segment. Assets and
liabilities held for sale as of September 30, 2015 include the carrying value
of investments representing our stakes in ArcelorMittal Algeria (49%),
ArcelorMittal Tebessa (49%) and ArcelorMittal Pipes and Tubes Algeria (70%) and
include Coza mining assets in South Africa. Assets and liabilities held for
sale as of December 31, 2014 included assets and liabilities held for sale
related to distribution centers in Europe and the disposal of tangible assets.
Contact information ArcelorMittal Investor Relations
Europe: +352 4792 3198
Americas: +1 312 899 3985
Retail: +352 4792 3198
SRI: +44 207 543 1123
Bonds/Credit: +33 1 71 92 10 26
Contact information ArcelorMittal Corporate Communications
Phone: +44 207 629 7988
ArcelorMittal Corporate Communications
Sophie Evans (Head of Media Relations) +44 203 214 2882
Paul Weigh +44 203 214 2419
Laura Nutt +44 207 543 1125
Isabelle Cornelis +44 203 214 2453
+44 20 7379 5151
Sylvie Dumaine / Anne-Charlotte Creach
+33 (1) 53 70 74 70
Our congratulations go to LanzaTech on winning the Young Global Leader Award for Circular Economy Entrepreneur as part of the 2016 Circulars Award program, organised by the World Economic Forum’s Young Global Leaders.
The Circulars, the world’s premier circular economy award program, offers recognition to individuals and organisations from commerce and civil society across the globe that have made a notable contribution to driving circular economy principles – where growth doesn’t depend on the use of scarce natural resources.
In July 2015, ArcelorMittal announced its partnership with LanzaTech and intent to construct Europe’s first-ever commercial scale production facility to create bioethanol from waste gases produced during the steelmaking process. The resulting bioethanol can cut greenhouse gas emissions by over 80% compared with conventional fossil fuels. It will predominantly be used in gasoline blending, but it can also be further processed into other products such as drop in jet fuel.
Construction of the €87 million flagship pilot project, which will be located at ArcelorMittal’s steel plant in Ghent, Belgium, has commenced, with bioethanol production expected to start in 2017.
Approximately 50% of the carbon used in the chemistry of steelmaking leaves the process as carbon monoxide. Today, this waste gas stream is either flared or used to heat and power the steel mill. In either case, the carbon monoxide is combusted and the resulting CO2 is emitted. LanzaTech’s technology, however, recycles the waste gases and ferments them with a proprietary microbe to produce bioethanol. Every tonne of bioethanol produced, displaces 5.2 barrels of gasoline as well as reducing ArcelorMittal’s CO2 emissions by 2.3 tonnes.
Commenting at the time the project was announced, Carl De Maré, Vice President of Emerging Technologies, ArcelorMittal, said: “This partnership is an example of how we are looking at all potential opportunities to reduce CO2 emissions and support a transition to a lower carbon economy. Steel is produced through a chemical process that results in high levels of waste gases being emitted; this new technology will enable us to convert some of these waste gases into fuels that deliver significant environmental benefits when compared to conventional fossil fuels. It is an example of why our carbon footprint should be viewed on a life cycle analysis basis, given steel is 100% recyclable and the material impact we make on reducing the carbon footprint of our customers through product innovation.”
Can you imagine living in a house made of steel?
The modern world relies on steel for its roads, rail, energy infrastructure, buildings, household products, packaging and its vehicles.
At ArcelorMittal, we are committed to enriching the communities where we have a presence.
The Circulars 2016 Finalist - LanzaTech (video)
ArcelorMittal steel has ensured the Mont Saint-Michel – one of France’s best-loved visitor sites – is an island once again.
Located off France’s north-western coast, the UNESCO-listed tourist hot spot has been moving closer to the mainland due to silt build-ups caused by canal work at the Couesnon River.
But thanks to the strong properties of steel from ArcelorMittal subsidiary Industeel, the Mont Saint-Michel has become an island again – work which French president François Hollande recognised during his visit to the island last month.
Freeing the Mont Saint-Michel from the sand was a major challenge. The main objective was to build a dam on the Couesnon River to flush away sediment with the flow of water.
The dam valves were built with Ur® 2205 Duplex steel from Industeel – a wholly-owned ArcelorMittal subsidiary specialised in the production of hot-rolled steel plates, including stainless steel plates for use in highly specialised industries. Steel for the valves was produced at an Industeel site at Le Creusot.
Jean-Christophe Gagnepain, stainless steel commercial manager, ArcelorMittal, said: “Duplex stainless steels are well-known around the world, and have been used for more than 20 years to build seawater desalination plants due to its very strong anti-corrosion properties. With such advantages, Duplex steel plates were the ideal product for the valve system of the dam”.
Vincent Pairet, CEO of Industeel, added: “This project will bring long-term positive results to the Mont Saint-Michel. ArcelorMittal is very proud to once again see Industeel involved in the preservation of a treasured historical site”.
Image credit: Glanmaria Zanotti, Flickr
Unique Chicago skyscraper features ArcelorMittal steel sections
ArcelorMittal steel in new infrastructure for Brazil
ArcelorMittal reports fourth quarter 2015 and full year 2015 results
ArcelorMittal steel brings Mont Saint-Michel back to life
ArcelorMittal is the world’s leading steel and mining company. Guided by a philosophy to produce safe, sustainable steel, it is the leading supplier of quality steel products in all major markets including automotive, construction, household appliances and packaging. ArcelorMittal is present in 60 countries and has an industrial footprint in 19 countries.
More press releases >
More news >
ArcelorMittal announced its full-year and Q4 2015 results on 5 February 2016
Visit our annual review 2014 website
ArcelorMittal hosted a 2015 results call on 5 February 2016
Download ArcelorMittal's new investor relations app
Steel and mining, financials, production facilities and shareholder information.