Ebola Private Sector Mobilisation Group established to respond to Ebola crisis
ArcelorMittal reports third quarter 2014 and nine months 2014 results
The Usibor® door ring is an innovative, life-saving solution.
Valin ArcelorMittal Automotive Steel Co inaugurates landmark automotive steel plant in China
ArcelorMittal scoops three industry awards
The scale of the Ebola virus disease outbreak in West Africa is unprecedented. The need for a coordinated and massive global response has been identified and international institutions, organisations, governments, non-governmental organisations, and the private sector are mobilising as part of these efforts. In August 2014, ArcelorMittal initiated the forming of the “Ebola private sector mobilisation group” (EPSMG), a coalition of more than 80 companies to align private sector capability with the international Ebola response. Initially launched as a platform for dialogue amongst major mining companies operating in the affected countries, EPSMG now includes companies operating in a broad range of sectors, as well as 40 civil society/government bodies. ArcelorMittal continues to chair the group.
Please visit the EPSMG website to find key contacts and more information - http://www.epsmg.com/
Luxembourg, November 7, 2014 - 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
for the three and nine month periods ended September 30, 2014.
and guidance framework:
Financial highlights (on the basis of IFRS):
Commenting, Mr. Lakshmi N. Mittal,
ArcelorMittal Chairman and CEO, said:
"This quarter’s results show the considerable
improvement in our steel business which has more than offset the fall in the
iron ore price. Europe has delivered another strong quarter, reflecting
improved market conditions and the benefits of the optimisation efforts, the
turnaround in ACIS is evident, and the NAFTA business has recovered after a
disappointing first half. Based on today’s market conditions, I do not foresee
a deterioration in our performance in the fourth quarter. As a result we are
well placed to achieve full year EBITDA in excess of $7.0 billion.
2014 earnings analyst conference call
management will host a conference call for members of the investment community
to discuss the three- and nine-month periods ended September 30, 2014 on:
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.
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 Annual Report on Form 20-F for the year ended December 31, 2013
filed with the SEC and with respect to Items 3, 4, 5, 6 and 18 of such Annual
Report on Form 20-F, such Items have been retrospectively adjusted to reflect
the retrospective application of changes in its segment information, which can
be found in the current report on Form 6-K filed with the SEC on August 5, 2014.
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 more than
60 countries and an industrial footprint in over 20 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.
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.
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 we use in our everyday lives more energy-efficient.
are one of the world’s 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 full year 2013,
ArcelorMittal had revenues of $79.4 billion and crude steel production of 91.2
million tonnes, while own iron ore production reached 58.4 million tonnes.
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).
more information about ArcelorMittal please visit: corporate.arcelormittal.com.
Corporate responsibility and
Health and safety -
Own personnel and contractors lost time injury frequency rate
Health and safety performance, based on
own personnel figures and contractors lost time injury frequency (LTIF) rate, improved
to 0.78x in the third quarter of 2014 (“3Q 2014”) as compared to 0.87x in the second
quarter of 2014 (“2Q 2014”) and 0.84x for the third quarter of 2013 (“3Q
2013”). During 3Q 2014, significant improvement in the performance of the Mining
and Europe segments relative to 2Q 2014 was offset by deterioration in the performance
of the Brazil and NAFTA segments.
Health and safety performance has
improved to 0.84x in the first nine months of 2014 (“9M 2014”) as compared to 0.89x
for the first nine months of 2013 (“9M 2013”), with improvements within the
Mining, NAFTA and ACIS segments, offset by deterioration in the Europe segment.
The 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 preventing fatalities.
Own personnel and
contractors - Frequency rate
responsibility highlights for 3Q 2014:
of results for the nine months ended September 30, 2014 versus results for the nine
months ended September 30, 2013
loss for 9M 2014 was $0.1 billion, or $0.08 loss per share, as compared to net loss
for 9M 2013 of $1.3 billion, or $0.77 loss per share.
Total steel shipments
for 9M 2014 were 2.9% higher at 63.9 million metric tonnes as compared with
62.1 million metric tonnes for 9M 2013.
Sales for 9M 2014 increased
by 1.6% to $60.6 billion as compared with $59.6 billion for 9M 2013, primarily
due to higher steel shipments (+2.9%) and marketable iron ore shipments (+20.1%),
offset in part by lower average steel selling prices (-1.3%) and lower seaborne
iron ore reference prices
In recent years the
Company’s maintenance practices have enabled an increase in the useful lives of
plant and equipment. As a result of this development, the Company has
determined that it is appropriate to extend the useful lives resulting in a
lower charge to the income statement. The full detailed review of useful lives
of the assets has been largely completed. Accordingly, depreciation of $3.0
billion for 9M 2014 was lower as compared to $3.4 billion for 9M 2013. The
Company expects the full year 2014 depreciation charge to be approximately $3.8-$4.0
billion as compared to $4.7 billion in each of 2012 and 2013.
Impairment charges for
9M 2014 were nil. Impairment charges for 9M 2013 were $140 million, including
$101 million for the costs associated with the discontinued iron ore project in
(Mining) and costs related to the closure of the organic coating and tin plate
lines in Florange.
charges for 9M 2014 were nil. Restructuring charges for 9M 2013 were $173
million, including $137 million of costs incurred for the long term idling of
the Florange liquid phase (including voluntary separation scheme costs, site
rehabilitation/safeguarding costs, and take or pay obligations).
Operating income for 9M
2014 was $2.5 billion as compared with operating income of $1.2 billion for 9M
2013. Operating results for 9M 2014 were negatively impacted by a $90 million charge
following the settlement of US antitrust litigation. Operating results for 9M 2013
were positively impacted by a $47 million fair valuation gain relating to the acquisition
of an additional ownership interest in DJ Galvanizing in Canada and by $92
million of “Dynamic Delta Hedge” (DDH) income. The DDH income recorded in 1Q
2013 was the final instalment of such income. This gain on the unwinding of a
currency hedge related to raw materials purchases was initially recorded in
equity in 4Q 2008 and as of 1Q 2013 had been fully recorded in the income
investments, associates, joint ventures and other investments in 9M 2014 was $208
million, as compared to income of $11 million in 9M 2013. Income in 9M 2014 includes
the annual dividend received from Erdemir, improved performance of Spanish investees
as well as the share of profits of Calvert operations. Income earned during 9M
2013 was lower primarily due to the payment of contingent consideration related
to the Gonvarri Brasil acquisition in 2008 and weaker performance of European
associates during the year.
interest expense (including interest expense and interest income) was lower at
$1.1 billion for 9M 2014, as compared to $1.4 billion for 9M 2013, following
repayment of bonds in 2Q 2013 and 2Q 2014. The Company now expects full year
2014 net interest expense of approximately $1.5 billion rather than the
previous guidance of approximately $1.6 billion.
exchange and other net financing costs
were $1.4 billion for 9M 2014 as compared to costs of $1.0 billion for 9M 2013.
Foreign exchange and other net financing costs for 9M 2014 include expenses
related to the termination of the Senegal greenfield project, 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.
an income tax expense of $196 million for
9M 2014, as compared to an income tax expense of $191 million for 9M
interests for 9M 2014 were a charge of $97 million, as compared to a charge of
$59 million for 9M 2013. Non-controlling interests charges for 9M 2014 primarily
relate to minority shareholders’ share of net income recorded in ArcelorMittal
Analysis of results for 3Q 2014 versus 2Q 2014 and 3Q 2013
recorded net income for 3Q 2014 of $22 million, or $0.01 earnings per share, as
compared to net income of $52 million, or $0.03 earnings per share for 2Q 2014,
and a net loss of $193 million, or $0.12 loss per share for 3Q 2013.
Total steel shipments
for 3Q 2014 were 21.5 million metric tonnes, comparable to 2Q 2014, despite a seasonal
slowdown in Europe and 3.9% higher than 20.7 million metric tonnes for 3Q 2013.
Sales for 3Q 2014 were
$20.1 billion as compared to $20.7 billion in 2Q 2014 and $19.6 billion for 3Q
2013. Sales in 3Q 2014 were lower as compared to 2Q 2014, primarily due to lower
average steel selling prices (-2.8%), lower market priced iron ore shipments (-4.8%)
and iron ore reference prices (-12%). Sales in 3Q 2014 were higher as compared
to 3Q 2013 due to improved steel shipments (+3.9%); and higher marketable iron
ore shipments (+6.3%), offset in part by lower iron ore reference prices (-32%).
Depreciation was higher
at $946 million for 3Q 2014 as compared to $931 million for 2Q 2014 and significantly
lower than $1,135 million for 3Q 2013, following
increases in the useful lives of plant and equipment (as discussed above).
Impairment charges for 3Q 2014 and 2Q 2014 were
nil. Impairment charges for 3Q 2013 were $101 million related to the costs
associated with the discontinued iron ore project in Senegal.
for 3Q 2014, 2Q 2014 and 3Q 2013 were nil.
Operating income for 3Q
2014 was $959 million, as compared to operating income of $832 million for 2Q 2014
and $477 million for 3Q 2013. Operating results for 2Q 2014 included a $90
million charge following the settlement of US antitrust litigation.
investments, associates, joint ventures and other investments in 3Q 2014 was $54
million as compared to income in 2Q 2014 of $118 million, and income of $53 million
in 3Q 2013. Income from investments, associates, joint ventures and other
investments in 2Q 2014 included an annual dividend received from Erdemir.
Net interest expense
(including interest expense and interest income) in 3Q 2014 was lower at $338
million, as compared to $383 million for 2Q 2014 and $409 million for 3Q 2013.
The decrease in 3Q 2014 was primarily due to savings incurred following the repayment
of the $800 million convertible bonds upon their maturity in May 2014 as well
as higher interest income.
Foreign exchange and
other net financing costs were $657 million for 3Q 2014 as compared to $327 million
for 2Q 2014 and $269 million for 3Q 2013. Foreign exchange and other net
financing costs for 3Q 2014 were negatively impacted by $315 million foreign
exchange losses as compared to a $2 million loss in 2Q 2014, primarily driven
by the net impact of 7.9% USD appreciation on deferred tax assets partially
offset by its impact on Euro denominated debt positions. In addition, 3Q 2014
includes $161 million expenses related to a federal tax amnesty plan in Brazil
linked with Siderbras case settled during the quarter. Foreign
exchange and other net financing costs for 2Q 2014 included non-cash gains and
losses on convertible bonds, and hedging instruments that matured during the
an income tax benefit of $21 million for 3Q 2014, as compared to an income tax expense
of $156 million and income tax benefit of $5 million for 2Q 2014 and 3Q 2013,
respectively. During 3Q 2014, the Company recognized $133 million of deferred tax assets for losses
of previous years that were utilized in the payment of
the tax amnesty in Brazil.
interests for 3Q 2014 represented a charge of $17 million, as compared to a charge
of $32 million for 2Q 2014 and a charge of $50 million for 3Q 2013.
Non-controlling interests charges for 3Q 2014 primarily related to minority
shareholders’ share of net income recorded in ArcelorMittal Mines Canada and the
Bekaert partnerships in Brazil, partially offset by losses generated by ArcelorMittal
Capital expenditure projects
following tables summarize the Company’s principal growth and optimization
projects involving significant capital expenditures.
Completed projects in most recent
a) Final capex for the
AMMC expansion project was $1.6 billion. The ramp-up of expanded capacity at
AMMC hit a run-rate of 24mt by year end 2013. An opportunity to 30mtpa
concentrate through debottlenecking of existing operations has been identified
but related expenditure remains subject to board approval.
projects refer to projects for which construction has begun (excluding various
projects that are under development), or have been placed on hold pending
improved operating conditions.
c) The Phase 2
expansion of the Liberia project to a production capacity of 15 million tonnes
per annum sinter feed is underway. Due to the evolving situation of the current
Ebola virus outbreak in West Africa, contractors working on the phase 2 expansion
project have declared force majeure. We are currently assessing the potential
impact on the project schedule. Prior to the force majeure event, the first
sinter feed production was expected at the end of 2015. Due to the force
majeure, the project is currently delayed and the Company will issue a new
timing forecast when the force majeure is no longer in effect. An opportunity
to expand capacity to 20mtpa including 5mtpa DSO has been identified but remains
subject to board approval. Phase 2 is expected to require capex of $1.7
billion.. ArcelorMittal remains fully committed to Liberia and the intention is
to re-start full construction of the phase 2 project at the earliest
opportunity. In the meantime, employees are working to secure equipment on
site and are continuing with other critical off-shore activities related to
logistics, engineering and procurement. Phase 1 operations continue as normal
at this time and to date have not been affected by the situation in Liberia.
Since the outbreak of Ebola in Liberia, ArcelorMittal has taken every precaution
to protect its employees and operations, including providing thermoflash
scanners to test for fever in all employees and visitors to all ArcelorMittal Liberia
locations, distributing 500 full sets of personal protective equipment (PPE) to
ArcelorMittal Liberia hospitals and other hospitals and clinics in Nimba,
Buchanan and Monrovia, and providing training to healthcare workers and
employees. Ebola awareness sessions were conducted by a leading Ebola
prevention and control expert, and an infectious disease nurse has been brought
in who serves as ArcelorMittal Liberia’s in-house expert and is working closely
with the ArcelorMittal hospital teams. The Company is also in regular
contact with International SOS and Liberia’s Ministry of Health as well as the
UN, WHO, US military and NGOs.
d) The Company’s Board of
Directors has approved the Early Revenue Phase (“ERP”) at Baffinland, which
requires less capital investment than the full project as originally proposed.
Implementation of the ERP is now underway and environmental approvals are in
place. The goal is to reach a 3.5mt per annum production rate during the open
water shipping season by the end of 2015. The budget for the ERP is
approximately $730 million and requires upgrading of the road that connects the
port in Milne Inlet to the mine site.
e) During 3Q 2013, the
Company restarted the construction of a heavy gauge galvanizing line #6
(capacity 660ktpy) at Dofasco. On completion of this project in 2015, the
older and smaller galvanizing line #2 (capacity 400ktpy) will be closed.
The project is expected to benefit EBITDA through increased shipments of
galvanized product (260ktpy), improved mix and optimized costs. The line
#6 will also incorporate Advanced High Strength Steel (AHSS) capability and is
the key element in a broader program to improve Dofasco’s ability to serve
customers in the automotive, construction, and industrial markets.
f) During 2Q 2013, the
Company restarted its Monlevade expansion project in Brazil. The project is
expected to be completed in two phases with the first phase (investment in
which has now been approved) focused mainly on downstream facilities and
consisting of a new wire rod mill in Monlevade with additional capacity of
1,050 ktpy of coils with capex estimated at a total of $280 million; and Juiz
de Fora rebar capacity increase from 50 to 400ktpy (replacing some wire rod
production capacity) and meltshop capacity increase by 200ktpy. This part of
the overall investment is expected to be finished in 2015. A decision whether
to invest in Phase 2 of the project, focusing on the upstream facilities in
Monlevade (sinter plant, blast furnace and meltshop), will be taken at a later
g) During 3Q 2013,
Acindar Industria Argentina de Aceros S.A. (Acindar) announced its intention to
invest $100 million in a new rolling mill (with production capacity of 400ktpy
of rebars from 6 to 32mm) in Santa Fe province, Argentina devoted to the
manufacturing of civil construction products. The new rolling mill will also
enable ArcelorMittal Acindar to optimize production at its special bar quality
(SBQ) rolling mill in Villa Constitución, which in the future will only
manufacture products for the automotive and mining industries. The project is
expected to take up to 24 months to build, with operations expected to start in
h) Valin ArcelorMittal
Automotive Steel (“VAMA”), a downstream automotive steel joint venture between
ArcelorMittal and Valin Group, of which the Company owns 49%, will produce
steel for high-end applications in the automobile industry and supply
international automakers and first-tier Chinese car manufacturers as well as
their supplier networks for the rapidly growing Chinese market. The project
involves the construction of state of the art pickling line tandem CRM (1.5mt),
continuous annealing line (0.9mt) and hot dipped galvanised line (0.5mt). Total
capital investment is expected to be $832 million (100% basis) with the first automotive
coil to be produced in 1Q 2015.
i) On September 16, 2014
ArcelorMittal, in partnership with joint venture partner Nippon Steel &
Sumitomo Metals Corporation (NSSMC), announced a $40m slab yard expansion
project to increase AM/NS Calvert’s slab staging capacity and efficiency. The
hot strip mill currently consists of three bays with the capacity to stage
around 335,000 metric tons of incoming slabs, significantly less than the
staging capacity required to achieve the 5.3 million metric ton target. The
slab yard expansion will include the addition of overhead cranes, along with
foundation work and structural steel erection, to increase the staging and
storage capacity in support of achieving the full capacity of the hot strip
mill. The project is expected to be complete in Q2 2016. At the same time, the
Company announced an additional investment in the facility’s existing number
four continuous coating line, which will significantly increase ArcelorMittal’s
North American capacity to produce press hardenable steels, notably one of
the strongest steels used in automotive applications, Usibor®, a type one
aluminum-silicon coated (Al Si) high strength steel.
Analysis of segment operations
January 1, 2014, ArcelorMittal implemented changes to its organizational structure
to give it a greater geographical focus. The principal benefits of the
changes are to reduce organizational complexity and layers; simplify processes;
capture regional synergies and take advantage of the scale effect within the
As a result, the analysis
of segment operations presented in this earnings release has been prepared
reflecting the new organizational structure. The changes are only
related to the allocation between the new reporting segments of NAFTA, Brazil
(Brazil and neighboring countries), Europe and ACIS. There are no changes to
the Group total or to the Mining segment.
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
Solutions (AMDS). The ACIS division is largely unchanged with the addition of
some Tubular operations. The Mining segment remains unchanged.
NAFTA crude steel
production increased by 5.4% to 6.5 million tonnes in 3Q 2014 compared to 2Q 2014,
following the completion of the planned blast furnace reline at Indiana Harbor
No.7 during the quarter, as well as impact of unplanned maintenance downtime at
Cleveland during 2Q 2014.
Steel shipments in 3Q 2014
were 5.9 million tonnes, an increase of 1.3% compared to 2Q 2014, primarily
driven by a 2.9% increase in flat product steel shipment volumes, reflecting
improved demand, offset in part by a 1.8% decline in long product steel
Sales increased by 4.1%
to $5.6 billion in 3Q 2014 compared to 2Q 2014 due to higher steel shipments as
discussed above, offset by lower average steel selling prices (-0.4%). Average
steel selling prices for long products decreased by 3.1% and remained stable for
EBITDA in 3Q 2014 increased
to $429 million compared to $177 million in 2Q 2014. EBITDA in 2Q 2014 included
a $90 million charge following the settlement of antitrust litigation in the United
States. Operating results for 2Q 2014 were negatively impacted by the residual costs
recorded in 2Q 2014 resulting from the severe weather disruption in the United States
during 1Q 2014 as well as costs related to planned and unplanned maintenance
As compared to 3Q
2013, EBITDA increased by 2.8%. The impacts of higher steel shipments (+1.6%)
and average steel selling prices (+4.3%) were offset in part by higher fixed
costs in 3Q 2014.
crude steel production increased by 24.7% to 3.0 million tonnes in 3Q 2014 as
compared to 2Q 2014, following the restart of ArcelorMittal Tubarão blast
furnace No.3 on July 6, 2014.
shipments in 3Q 2014 increased by 23% to 2.8 million tonnes compared to 2Q 2014
primarily on account of higher slab shipments from Brazil post restart of blast
furnace No.3 at Tubarão as mentioned above.
Sales increased by 11.3%
to $2.7 billion in 3Q 2014 compared to 2Q 2014. Sales were higher primarily on
account of higher steel shipments, offset in part by lower average steel
selling prices (-7.3%). Average steel selling price for flat products declined 1.9%
excluding the mix impact, while prices for long products were lower by 1.2%.
EBITDA in 3Q 2014 increased
11.1% to $460 million as compared to $414 million in 2Q 2014 primarily on
account of higher volumes. EBITDA in 3Q 2014 was lower as compared to 3Q
2013 by 7.5%. EBITDA gain from the additional slab volumes was offset by lower
long product shipments and higher fixed costs.
segment crude steel production decreased by 0.9% to 10.8 million tonnes in 3Q
2014, as compared to 2Q 2014.
Steel shipments in 3Q 2014
were 9.8 million tonnes, a decrease of 3.6% compared to 2Q 2014. Flat and long product
steel shipment volumes decreased by 2.2% and 5.9%, respectively, following
seasonally lower demand.
Sales decreased by 7.9%
to $9.7 billion in 3Q 2014, as compared to $10.5 billion in 2Q 2014, primarily
due to lower steel shipment volumes discussed above, and lower average steel
selling prices primarily due to euro weakness. Average steel selling prices for
flat products declined 5.4% while prices for long products declined by 4%.
EBITDA in 3Q 2014 decreased
by 24.2% to $523 million as compared to $689 million in 2Q 2014, mainly driven
by lower steel shipments and the translation impact following a weaker euro. EBITDA in
3Q 2014 was 72.6% higher than 3Q 2013, reflecting improved market conditions,
lower costs and the realized benefits of cost optimization efforts.
ACIS segment crude steel
production in 3Q 2014 was stable at 3.6 million tonnes as compared to 2Q 2014.
Production was higher in Kazakhstan and Ukraine, offset in part by lower
production in South Africa following the on-going reline of the Newcastle blast
furnace, which commenced during 2Q 2014.
Steel shipments in 3Q
2014 were 3.2 million tonnes, a decrease of 2.3% compared to 2Q 2014, primarily
driven by lower exports.
Sales decreased by
13.3% to $2.0 billion in 3Q 2014, compared to $2.3 billion in 2Q 2014,
primarily due to lower sales of non-steel products and lower steel shipment volumes
EBITDA in 3Q 2014
increased by 33.7% to $208 million, compared to $156 million in 2Q 2014, due to
improved performance (prices and costs) in the CIS countries.
EBITDA in 3Q 2014
increased by 89.5% to $208 million, compared to $110 million in 3Q 2013, due to
higher steel shipments (+0.7%), improved operations and lower costs primarily
in the CIS.
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 3Q 2014
was 15.8 million metric tonnes, 4.5% lower than 16.6 million metric tonnes for 2Q
2014 due to the rainy season in Liberia and minor operational issues in our
Canadian operations, but 6% above 3Q 2013, primarily due to higher production
from Canadian mining operations following their expansion.
price shipments decreased by 4.8% to 10.0 million tonnes in 3Q 2014, as
compared to 10.5 million tonnes in 2Q 2014, primarily driven by seasonally lower
shipments from our Liberia mining operations and lower Ukrainian shipments.
Shipments at market price in 3Q 2014 were 6.3% higher than 3Q 2013 primarily
due to increased shipments in Canada following the successful commissioning and
ramp-up of the expanded concentrator.
Own coal production
(not including supplies under strategic long-term contracts) in 3Q 2014 remained
stable at 1.8 million metric tonnes, as compared to 2Q 2014 and lower than 2.0
million metric tonnes for 3Q 2013.
for 3Q 2014 was $278 million, 28.4% lower as compared to $388 million in 2Q 2014,
primarily due to lower seaborne iron ore market prices, offset in part by lower
for 3Q 2014 was lower as compared to $533 million in 3Q 2013, primarily due to lower
seaborne iron ore market prices, partially offset by higher market priced
shipments and lower costs.
Liquidity and Capital Resources
For 3Q 2014, net cash provided
by operating activities was $501 million, as compared to net cash provided by operating
activities of $1,548 million in 2Q 2014.
Cash used by operating
activities in 3Q 2014 included a $576 million investment of operating working
capital as compared to a $856 million release of operating working capital in 2Q
2014. Rotation days
during 3Q 2014 were stable at 54 days as compared to 2Q 2014 primarily on
account of foreign exchange.
Net cash provided by
other operating activities in 3Q 2014 was $251 million (including reversals of non
cash items related to the Siderbras tax amnesty settlement), as
compared to net cash used by other operating activities in 2Q 2014 of $384
million (including amongst others the Senegal settlement payment, changes in
other payables, such as employee benefits and the adjustments of non-cash items
such as income from associates and forex gains partially offset by non-cash
gains and losses on convertible bonds and hedging instruments that matured
during the quarter).
Net cash used in investing activities during 3Q
2014 was $888 million, as compared to $607 million in 2Q 2014. Capital
expenditure increased to $949 million in 3Q 2014 as compared to $774 million in
2Q 2014. The Company now expects full year 2014 capital expenditure to
be approximately $3.8 billion.
Cash flow from other investing activities in 3Q
2014 of $61 million primarily included cash inflow from the divesture of
Other investing activities in 2Q 2014 of $167 million primarily included cash
inflow from the divestures of the ATIC
group and the steel cord business.
Net cash provided by financing
activities for 3Q 2014 was $294 million as compared to net cash used in
financing activities of $1.7 billion in 2Q 2014. Net cash provided by financing
activities for 3Q 2014 primarily included inflow related to issuance of $805 million
million) 2.875 per cent Notes due July 6, 2020 under the €3 billion wholesale
Euro Medium Term Notes Programme offset by $136 million (€100 million) bond
Net cash used in financing activities for 2Q 2014 primarily included
debt repayment of $2.7 billion (primarily €1.25 billion for the 7.25%
convertible bonds due April 1, 2014 and $800 million for the 5.00% convertible
bonds due May 15, 2014), offset in part by a new bank loan of $1.0 billion.
cash used in financing activities for 3Q 2013 included an early debt repayment
of $0.8 billion following the completion of a cash tender offer to purchase any
and all of the 6.5% U.S. dollar denominated Notes due in April 2014 (“the $
2014 Notes”) and the 4.625% EURO denominated Notes due in November 2014 (“the €
2014 Notes”), as well as to prepay €125 million of 6.2%
Fixed Rate Notes maturing in 2016 and $120 million of 6.38% privately
placed Notes maturing in 2015. The Group purchased $311.5 million principal
amount of the $ 2014 Notes for a total aggregate purchase price (including
accrued interest) of $327.8 million and €139.5 million of the € 2014 Notes for
a total aggregate purchase price (including accrued interest) of €150.1 million.
During 3Q 2014, the Company
paid dividends amounting to $381 million as compared to $5 million for 2Q 2014
and $364 million in 3Q 2013. Dividends for 3Q 2014 include $328 million paid to
ArcelorMittal shareholders and $53 million paid to minority shareholders.
30, 2014, the Company’s cash and cash equivalents (including restricted cash)
and short-term investments amounted to $4.2 billion as compared to $4.4 billion
at June 30, 2014. Gross debt of $21.9 billion at September 30, 2014, increased
slightly from $21.8 billion at June 30, 2014. As of September 30, 2014, net
debt was $17.8 billion as compared with $17.4 billion at June 30, 2014, primarily
driven by decreased cash flow from operations (in particular due to the investment
in working capital of $0.6 billion) and payment of annual dividends ($0.4
billion), offset in part by forex effects ($0.5 billion).
had liquidity of $10.2
billion at September 30, 2014, consisting of cash and cash
equivalents (including restricted cash and short-term investments) of $4.2 billion
and $6.0 billion of available credit lines. On September 30, 2014, the average
debt maturity was 6.1 years.
October 30, 2014, the Company redeemed its 9.0% Notes due February 15, 2015 and
its 3.750% Notes due February 25, 2015 prior to their scheduled maturity.
For purposes of the Company’s debt maturity profile table, these two issuances
will be considered excluded from 2015 debt repayments and included in 2014 debt
Key recent developments
Outlook and guidance
conditions remain generally favorable. The impact of declining iron ore prices
on Mining segment profitability is being offset by improvement in the steel
business. As a result, the
Company reiterates its guidance for EBITDA in excess of $7.0 billion in 2014.
on the current economic outlook, ArcelorMittal continues to expect global
apparent steel consumption (“ASC”) to increase by approximately 2.25-2.75% in
2014. Steel demand in the US has been strong and US ASC growth in 2014 has been
upgraded to a forecast range of 8.25-8.75%. Demand conditions in Europe have
also remained robust during the seasonally weak summer period, and we maintain
ASC growth expectations in 2014 of 3-3.5%. In China, we see signs of
stabilization due to the government’s targeted stimulus, and expect steel
demand in the range of 1.5-2.0%. While risks remain to steel demand in the CIS
and other emerging markets including Brazil, the stronger fundamentals in our
key developed world markets continue to support our expectation that steel
shipments should increase by approximately 3% in 2014 as compared to 2013.
the successful ramp up of expanded capacity at ArcelorMittal Mines Canada,
year-on-year increases in market-priced iron ore shipments are expected. This
should underpin a 15% expansion of marketable iron ore volumes for the Company
in 2014 as compared to 2013.
to improved industry utilization rates, and the further contribution of the
Company’s Asset Optimization and Management Gains cost optimization programs,
steel margins are expected to improve in 2014.
the Company now expects net interest expense to be approximately $1.5 billion
in 2014 as compared to $1.8 billion in 2013, due primarily to lower average
expenditure is expected to be approximately $3.8 billion for 2014.
previously communicated, the Company does not intend to consider a ramp-up in any
major steel growth capex or an increase in dividends until the medium term $15
billion net debt target has been achieved and market conditions improve.
Others and eliminations line are not presented in the table
Appendix 2: Capital expenditure
and eliminations line are not presented in the table
Appendix 3: Debt repayment schedule as of September 30, 2014
Appendix 4: Credit lines available as of September 30, 2014
Appendix 5: EBITDA bridge from 2Q 2014 to 3Q 2014
a) The volume
variance indicates the sales value gain/loss through selling a higher/lower
volume compared to the reference period, valued at reference period
contribution (selling price–variable cost). The mix variance indicates sales
value gain/loss through selling different proportions of mix (product, choice,
customer, market including domestic/export), compared to the reference period
price-cost variance is a combination of the selling price and cost variance.
The selling price variance indicates the sales value gain/loss through selling
at a higher/lower price compared to the reference period after adjustment for
mix, valued with the current period volumes sold. The cost variance indicates
increase/decrease in cost (after adjustment for mix, one-time items and others)
compared to the reference period cost. Cost variance includes the gain/loss
through consumptions of input materials at a higher price/lower price, movement
in fixed cost, changes in valuation of inventory due to movement in capacity
c) “Other” include
a $90 million charge following the settlement of antitrust litigation in the
United States in 2Q 2014 and translation losses on foreign exchange.
information in this press release has been prepared consistently with
International Financial Reporting Standards (“IFRS”) as issued by the
International Accounting Standards Board (“IASB”). While the interim financial
information included in this announcement has been prepared in accordance with
IFRS applicable to interim periods, 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.
Lost time injury
frequency rate equals lost time injuries per 1,000,000 worked hours, based on
own personnel and contractors.
EBITDA is defined as
operating income plus depreciation, impairment expenses and restructuring
charges / exceptional items.
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 cost-plus basis.
Net debt refers to
long-term debt, plus short term debt, less cash and cash equivalents,
restricted cash and short-term investments (including those held as part of
asset/liabilities held for sale). As at September 30, 2014 net debt included
$0.1 billion relating to distribution centers in Europe held for sale.
On October 8, 2014,
ArcelorMittal and Gerdau jointly announced completion of the sale of their
respective 50% interests in Gallatin Steel Company ("Gallatin") to
Nucor Corporation. The sale was completed for a total cash consideration of $770
million (of which $385 million cash due to ArcelorMittal and paid in 4Q 2014) and
a gain on disposal of approximately $0.2 billion is expected to be recorded in
income from associates, joint ventures and other investments in 4Q 2014.
Gallatin is a flat rolled mini-mill located in Gallatin County, Kentucky, USA
that melts scrap, pig iron and hot briquetted iron from various sources, and
processes the material to produce flat rolled steel. Gallatin’s high quality
assets produce a wide range of steels from low to high carbon grades with an
annual capacity of around 1.8 million tons.
calculated as total Group EBITDA divided by total steel shipments.
Iron ore prices for
62% Fe CFR China.
ArcelorMittal Holdings AG entered into an agreement with the State of Senegal
relating to an integrated iron ore mining and related infrastructure project.
The Company announced at the time that implementation of the project would
entail an aggregate investment of $2.2 billion. Project implementation did not
follow the originally anticipated schedule after initial phase studies and
related investments. The Company engaged in discussions with the State of
Senegal about the project over a long period. In early 2011, the parties
engaged in a conciliation procedure, as provided for under their agreement, in
an attempt to reach a mutually acceptable outcome. Following the unsuccessful
completion of this procedure, in May 2011, the State of Senegal commenced an
arbitration before the Court of Arbitration of the International Chamber of
Commerce, claiming breach of contract and provisionally estimating damages of
$750 million. In September 2013, the arbitral Tribunal issued its first award
and decided that Senegal was entitled to terminate the 2007 agreements. The Tribunal also indicated that a new arbitration
phase would be held to decide upon the liability of ArcelorMittal as well as the amount of any damages which could be awarded to
Senegal. As a result, ArcelorMittal impaired the entire amount of the investment made up to September 30, 2013. A settlement was subsequently reached with the State of
Senegal in respect of this arbitration and paid in 2Q 2014.
On October 21, 2014,
the U.S. District Court for the Northern District of Illinois issued its final
approval of a settlement in relation to the direct purchaser claims that had
been consolidated with the Standard Iron Works lawsuit filed against the
Company. The two putative class actions that had been filed against the
Company on behalf of indirect purchasers are not covered by the settlement, nor
are any future claims filed by direct purchasers that chose to opt-out of the
On February 26, 2014,
ArcelorMittal, together with Nippon Steel & Sumitomo Metal Corporation
(“NSSMC”), announced that it has completed the acquisition of ThyssenKrupp
Steel USA (“TK Steel USA”), a steel processing plant in Calvert, Alabama,
having received all necessary regulatory approvals. The transaction – a 50/50
joint venture with NSSMC – was completed for an agreed price of $1,550 million
plus working capital and net debt adjustment. ArcelorMittal paid $258 million
cash for the acquisition in 1Q 2014. The Calvert plant has a total capacity of
5.3 million tons including hot rolling, cold rolling, coating and finishing
Foreign 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
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 is $161 million (original debt
$259 million including interest and penalties) and recorded as a financial
expense. Of this amount, $82 million will be by way of set-off of tax losses
and the remaining balance paid in cash ($79 million). The cash payment will be
settled in 30 monthly instalments. 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
The Company recorded
a total of $133 million of deferred tax assets for losses of previous
years in the framework of Federal Amnesty programmes in Brazil (including $82
million from the Siderbras case and $51 million in relation to the existing
amnesty debts signed during 4Q 2013 which are now allowed to be partially
offset with tax losses).
interest in the associate Hunan Valin Steel Tube and Wire Co. Ltd. (“Hunan
Valin”) decreased from 30% to 20% following the sale of a 10% stake to Hunan
Valin Iron & Steel Group Co, Ltd. (“Valin Group”) as a result of the
exercise of the first and second put options on February 6, 2013 and August 6,
2013, respectively. The total consideration received for the sale for the first
and second option was $194 million, of which $169 million was reinvested into a
capital increase and the acquisition of an additional 16% interest in Valin
ArcelorMittal Automotive Steel (“VAMA”), a downstream automotive steel joint
venture between ArcelorMittal and Valin Group in which the Company increased
accordingly its stake from 33% to 49%. The Company’s interest in Hunan Valin
decreased from 20% to 15% following the sale of a 5% stake to Valin Group as a
result of the exercise of the third put option on February 8, 2014. The Company
exercised the fourth and final instalment on August 6, 2014. Completion of the
transaction is subject to regulatory approval. The Company expects cash from
the third installment of $107 million due in fourth quarter of 2014 and fourth installment
of $107 million in 1H 2015.
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
Average steel selling
prices are calculated as steel sales divided by steel shipments.
There are three
categories of sales: 1) “External sales”: mined product sold to third parties
at market price; 2) “Market-priced tonnes”: internal sales of mined product to
ArcelorMittal facilities and reported at prevailing market prices; 3)
“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).
Rotation days are
defined as 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.
Pursuant to a sale
and purchase agreement entered into on July 10, 2014 with Doosan (a South
Korean conglomerate), ArcelorMittal sold all of the shares of Circuit Foil
Luxembourg Sarl (CFL), together with some of its subsidiaries, for cash
consideration of $49 million.
On April 30, 2014,
ArcelorMittal and H.E.S. Beheer N.V. signed a sale and purchase agreement for
the sale of ArcelorMittal’s 78% stake in European port handling and logistics
company ATIC Services S.A. (“ATIC”) to HES Beheer for €155 million ($212
million). The net proceeds received are $144 million being $212 million cash
proceeds minus cash held by ATIC. Additionally, $17 million debt held by ATIC
has been transferred. The transaction is consistent with ArcelorMittal’s stated
strategy of selective divestment of non-core assets. The transaction was
completed on June 30, 2014.
On December 9, 2013,
ArcelorMittal signed an agreement with Kiswire Ltd. for the sale of its 50%
stake in the joint venture Kiswire ArcelorMittal Ltd in South Korea and certain
other entities of its steel cord business in the US, Europe and Asia for a
total consideration of $169 million. The net proceeds received in 2Q 2014 are
$39 million being $55 million received in cash during the quarter minus cash
held by steel cord business. Additionally, $28 million of gross debt held by
the steel cord business has been transferred. The remaining $102 million from
the sale proceeds is expected to be received by 2Q 2015. The transaction is
subject to final working capital adjustments.
lines for the commercial paper program.
As at September, 30,
2014, Gallatin’s carrying amount was classified as held for sale. The third
quarter of 2014 also includes assets and liabilities held for sale related to
distribution centers in Europe.
Total of all finished
production of fines, concentrate, pellets and lumps (excludes share of
production and strategic long-term contracts).
capital is defined as trade accounts receivable plus inventories less trade
Capex includes the
acquisition of intangible assets (such as concessions for mining and IT
support) and includes payments to fixed asset suppliers.
On October 30, 2014,
the Company redeemed its 9.0% Notes due February 15, 2015 and its 3.750% Notes
due February 25, 2015 prior to their scheduled maturity. For purposes of
the Company’s debt maturity profile table, these two issuances have been excluded
from 2015 debt repayments and included in 2014 debt repayments.
Commercial paper is
expected to continue to be rolled over in the normal course of business.
Contact information ArcelorMittal Investor Relations
Europe: +352 4792 2484
Americas: +1 312 899 3985
Retail: +352 4792 2434
SRI: +44 203 214 2854
Bonds/Credit: +33 1 71 92 10 26
Contact information ArcelorMittal Corporate Communications
Phone: +352 4792 5000
ArcelorMittal Corporate Communications
Sophie Evans (Head of Media Relations) +44 203 214 2882
Laura Nutt +44 207 543 1125
Martin Leeburn +44 20 7379 5151
Sylvie Dumaine / Anne-Charlotte Creach
+33 (1) 53 70 74 70
Loudi, China, 15 June 2014 – Valin ArcelorMittal Automotive Steel Co (VAMA) today officially opened its new advanced automotive steel plant in China, beginning a new era of automotive manufacturing in the country.
VAMA, the joint venture between ArcelorMittal and Hunan Valin Iron & Steel Co., will produce high-strength automotive steels that currently have to be imported, for the Chinese market. Located in the economic zone of Loudi, Hunan Province, and built on a greenfield site, this is one of the major investment projects jointly approved by China’s National Development and Reform Commission and the Ministry of Commerce. The total investment is 5.2 billion yuan (US$832 million).
The two-year construction project, involving more than 2,000 workers, was completed on schedule, achieving more than six million safe work hours, making it one of the safest steel projects in China. The completed project, which was built in 730 days compared with an industry average of three and a half years, will initially provide more than 600 high-skilled jobs, with plans to create more jobs as production increases.
China has the world’s fastest-growing automotive market, recording a 16 per cent increase in car sales to 18 million units last year, and is expected to account for 35 per cent of worldwide automotive growth between now and 2020.
VAMA will produce state-of-the-art grade steels for safe and cost-efficient lightweight design, superior surface quality and coating technology, helping to meet rapid growth in demand for advanced automotive steels in China. The annual production capacity will be 1.5 million tons, including 800,000 tons of cold rolled coils, 200,000 tons of aluminium-coated coils and 500,000 tons of hot-dip galvanised coils. VAMA covers a large range of automotive steel products, including those for visible structural parts, chassis and wheels.
ArcelorMittal, the world’s leading steel and mining company, has contributed the most advanced automotive steel production technology available, including Advanced and Ultra High Strength Steel (AHSS and UHSS) grades with levels of up to 1,200 MPa, Usibor® 1500 – a steel for hot stamping – and assisted with the completion of the quality control and R&D systems.
VAMA aims to supply international carmakers and Tier 1 suppliers as well as promote high-end solutions to domestic car manufacturers and their supplier networks. These include ArcelorMittal’s major customers in China, such as Volkswagen, GM, Ford, PSA, Daimler-Benz, BMW, Toyota, Honda, Renault, Fiat and Nissan, as well as leading domestic manufacturers such as Geely, Chery, Dongfeng, Guangzhou Auto, Shanghai Auto and Changan.
The inauguration ceremony was attended by our company’s chairman and CEO Mr Mittal, GMB member Sudhir Maheshwari, VAMA CEO Sanjay Sharma, CEO of India and China Vijay Bhatnagar and vice president automotive worldwide Brian Aranha.
Senior Chinese leaders attended including Mr. Cao Huiquan, chairman and CEO of Hunan Valin Steel, Hunan Governor Du Jiahao, and Hunan Vice Governor Chen Zhaoxiong, underlining the importance of the manufacturing project to the development of the automotive industry in China.
Speaking in Loudi today, Mr Lakshmi Mittal, chairman and CEO of ArcelorMittal, said the completion of the major project with six million safe work hours, on schedule and within budget was a “remarkable achievement which sets a new standard in our industry” adding:
“The most advanced technology has been extended to VAMA, which is therefore ideally positioned to give auto manufacturers greater flexibility to produce lighter, safer and more environmentally friendly cars for customers in China”.
Mr Cao Huiquan, chairman and CEO of Hunan Valin Steel said: “The VAMA project is an important milestone for Hunan Valin to transform from a regional niche producer to a full service provider. The success of VAMA relies on the highest efficiency from Valin LYS, to VAMA, to downstream steel service centres, to automotive end-users. Following the example of a small number of Sino-foreign automotive steel joint ventures in China, both Valin and ArcelorMittal are inspired to build a profitable and sustainable VAMA that can become the pride of Hunan Province and the Chinese steel industry.”
Hunan Valin Steel Co. Ltd
London, 22 May 2014 - ArcelorMittal is proud to announce it has won ‘Deal of the Year’, ‘Lifetime Achievement’ and ‘Industry Leader’ at this year’s Platts Global Metals Awards. The annual awards, which recognise excellence and accomplishments in the global metals industry, were presented in London on 21 May.
ArcelorMittal won the deal of the year category for its acquisition of ThyssenKrupp Steel USA, in a joint venture with Nippon Steel & Sumitomo Metal Corporation (NSSMC). The complex transaction - which completed in February this year - was one of the biggest in the steel industry for years, resulting in ArcelorMittal and NSSMC owning the flagship steel finishing plant AM/NS Calvert in Alabama, USA.
Accepting the award on behalf of ArcelorMittal, Bill Steers, general manager, Americas communications and corporate responsibility, highlighted the importance of this milestone deal for the company:
"It is gratifying to receive recognition from Platts Global Metal awards, highlighting the successful completion of this deal for ArcelorMittal. Along with NSSMC we are now the owners of the most modern steel finishing facility in the world, which will allow us to meet rising demand for steels in the automotive, energy and other important NAFTA markets.”
Greg Ludkovsky, vice president for global research and development at ArcelorMittal, took home the prestigious lifetime achievement award, for his unique contribution over the past four decades to innovation in the steel industry. Accepting the award, he spoke of his passion for his chosen profession: “I am very honoured to have been awarded this recognition from Platts. I like to tell people to ‘find a job you like - and you will not be working for a single day in your life’ – this is how I feel about my work, innovating to create and design new steels for the world”.
Speaking about Greg, Lou Schorsch, CEO of ArcelorMittal Americas and Group Management Board member responsible for strategy, technology, R&D, global automotive and commercial co-ordination, said: “Even decades ago, Greg was recognised as an outstanding R&D scientist and manager bringing steel applications to our customers. Today he leads the R&D function at ArcelorMittal with operations on five continents and activities in almost every product category. Despite the scope of these responsibilities Greg continues to be an incredibly fertile source of innovative ideas and solutions, particularly as our customers set ever higher targets for our product. Greg’s leadership is ultimately responsible for breakthrough products like our proprietary door ring – used in the Honda SUV MDX”.
The third award of the night recognised ArcelorMittal’s leadership in the steel industry. With the steel industry having changed beyond recognition in the last 30 years as a result of extensive restructuring and consolidation, the judges awarded ArcelorMittal for its status as the only truly global steelmaker, its leadership in developing new products, its approach to corporate responsibility and the strength of its brand.
The black-tie gala was held in Plaisterers’ Hall, London and attracted more than 200 metal leaders from around the world, with around 30 companies reaching the final stages of the awards.
Image top: Greg Ludkovsky (centre) and Bill Steers (centre right) accept the industry leadership award for the steel industry
Image bottom: Greg Ludkovsky accepts the lifetime achievement award
Want to know more?
Read about the door ring used in the Honda SUV MDX
Watch an interview with Greg Ludkovsky, on the power of innovation
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ArcelorMittal and the Honda Acura MDX door ring
Valin ArcelorMittal Automotive Steel Co inaugurates landmark automotive steel plant in China
ArcelorMittal scoops three industry awards
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 more than 60 countries and has an industrial footprint in over 20 countries.
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