The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from Business Wire

ArcelorMittal Reports Full Year and Fourth Quarter 2010 Results

Tuesday, February 08, 2011

ArcelorMittal Reports Full Year and Fourth Quarter 2010 Results02:10 EST Tuesday, February 08, 2011 LUXEMBOURG (Business Wire) -- ArcelorMittal (referred to as “ArcelorMittal” or the “Company”) (MT (New York, Amsterdam, Paris, Brussels, Luxembourg), MTS (Madrid)), the world's leading steel company, today announced results1 for the three and twelve month periods ended December 31, 2010. Successful spin-off of stainless steel business (Aperam) following shareholders' approval on January 25, 2011. Accordingly, stainless steel results for 4Q 2010 are recorded as discontinued operations, and prior results and operational KPI's have been recast to reflect the new presentation2.Highlights: Health and Safety frequency rate3 improved in 2010 to 1.8x as compared to 1.9x in 2009; marked improvement in 4Q 2010 with rate at 1.6x compared with 1.9x for 3Q 2010. Full year EBITDA4 of $8.5 billion (excluding $0.4 billion for Aperam), 52% higher than 2009; full-year net income of $2.9 billion or $1.93 per share. 4Q 2010 EBITDA of $1.9 billion (including $0.1 billion from sale of CO2 credits); Q4 2010 net loss of $0.8 billion (or $0.51 loss per share) primarily due to impairment associated with the stainless demerger. Shipments of 85.0 Mt in 2010, 22% higher than 2009; 4Q 2010 shipments of 21.1 Mt up 3% vs. 3Q 2010. Strong cash flow from continuing operations of $3.3 billion in 4Q 2010 ($3.8 billion for 2010) led to a $2.3 billion reduction in net debt5 to $19.7 billion as of December 31, 2010, as compared to $22.1 billion as of September 30, 2010. Own iron ore production of 48.9 Mt in 2010 as compared to 37.7 Mt in 2009; 12.6 Mt in 4Q 2010. Successful spin-off of stainless steel business (Aperam) following shareholders' approval on January 25, 2011. ArcelorMittal has along with Nunavut Iron Ore jointly acquired more than 90% of Baffinland Iron Mines Corporation; the Company's immediate focus will be on completing the project feasibility studies. Outlook and guidance: Volumes are expected to increase in 1Q 2011 as the gradual underlying demand recovery continues and market sentiment improves. Additionally, selling prices are adjusting to rapid increases in raw material prices. Q1 2011 EBITDA expected to be between $2.0 - $2.5 billion Q1 2011 capacity utilisation expected to rise to ~76% (vs. 69% in Q4 2010); working capital requirements and net debt expected to increase accordingly (the latter sharply) 2011 CAPEX budget of $5 billion of which $1.4 billion for mining 2011 target of ~10% increase in our own iron ore production as compared to 2010 Financial highlights (on the basis of IFRS1, amounts in USD):                       (USDm) unless otherwise shown   4Q 10   3Q 10   4Q 09   12M 10   12M 09 Sales   $20,699   $19,744   $17,434   $78,025   $61,021 EBITDA   1,853   2,162   2,056   8,525   5,600 Operating Income / (loss)   397   1,028   713   3,605   (1,470) (Loss) / income from discontinued operations   (547)   38   40   (330)   (57) Net (loss) / Income   (780)   1,350   1,109   2,916   157 Basic (loss) / Earnings Per Share (USD)   (0.51)   0.89   0.73   1.93   0.11                       Continuing operations                     Iron Ore Production (Mt)   18.9   17.4   15.6   68.5   52.7 Crude Steel Production (Mt)   21.6   22.2   22.1   90.6   71.6 Steel Shipments (Mt)   21.1   20.5   19.5   85.0   69.6 EBITDA/tonne (US$/t)   88   105   105   100   80 Operating Income (loss)/tonne (US$/t)   19   50   36   42   (21) Commenting, Mr. Lakshmi N. Mittal, Chairman and CEO, ArcelorMittal, said: “Although 2010 continued to be a challenging year, as anticipated we saw a slow and progressive recovery which enabled us to deliver a substantially improved performance compared with 2009. The gradual underlying demand recovery continues and we expect 2011 to be stronger than 2010. The year has started positively with the successful spin-off of Aperam. We have also continued to pursue expansion in mining and have recently acquired control of Baffinland, an extremely high-quality iron-ore asset in Canada.” fourth quarter 2010 News CONFERENCE (FOR MEDIA) ArcelorMittal management will host a news conference:               Date   New York   London   Luxembourg Tuesday February 8, 2010   4.30am   9.30am   10.30am       The dial in numbers: Location   Dial in numbers   Replay numbers UK local:   +44 207 138 0814   +44 207 111 1244 UK toll free:   0800 559 3272   +44 207 111 1244 USA:   +1 718 354 1359   +1 347 366 9565 France:   +33 (0)1 70 99 42 75   +33 (0)1 74 20 28 00   A replay of the conference call will be available for one week by dialing Language   English   Spanish   French Access code   1137948#   5381422#   5649454# fourth quarter 2010 Earnings ANALYST Conference Call Additionally, ArcelorMittal management will host a conference call for members of the investment community to discuss the fourth quarter 2010 financial performance at: Date   New York   London   Luxembourg Tuesday February 8, 2010   9.30am   2.30pm   3.30pm       The dial in numbers: Location   Dial in numbers   Replay numbers UK local:   +44 (0)20 7806 1955   +44 (0)20 7111 1244 UK toll free   0800 028 1277     USA local:   +1 212 444 0413   +1 347 366 9565 USA free phone:   1888 935 4577       A replay of the conference call will be available for one week by dialing Language   English Access code   6211949# The conference call will include a brief question and answer session with senior management. The presentation will be available via a live video webcast on www.arcelormittal.com. Forward-Looking Statements 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 (Commission 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, 2010 to be filed with the SEC. ArcelorMittal undertakes no obligation to publicly update its forward-looking statements, whether as a result of new information, future events, or otherwise. About ArcelorMittal ArcelorMittal is the world's leading steel company, with presence in more than 60 countries. ArcelorMittal is the leader in all major global steel markets, including automotive, construction, household appliances and packaging, with leading R&D and technology, as well as sizeable captive supplies of raw materials and outstanding distribution networks. With an industrial presence in over 20 countries spanning four continents, the Company covers all of the key steel markets, from emerging to mature. Through its core values of sustainability, quality and leadership, ArcelorMittal commits to operating in a responsible way with respect to the health, safety and well-being of its employees, contractors and the communities in which it operates. It is also committed to the sustainable management of the environment. It takes a leading role in the industry's efforts to develop breakthrough steelmaking technologies and is actively researching and developing steel-based technologies and solutions that contribute to combat climate change. In 2010, ArcelorMittal had revenues of $78.0 billion and crude steel production of 90.6 million tonnes, representing approximately 6 per cent of world steel output. ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MT), Brussels (MT), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS). For more information about ArcelorMittal visit: www.arcelormittal.com. EnquiriesARCELORMITTAL FOURTH QUARTER 2010 RESULTS AND FULL YEAR 2010 RESULTS ArcelorMittal, the world's leading steel company, today announced results for the three and twelve month periods ended December 31, 2010. Corporate social responsibility performanceHealth and safety - Own personnel and contractors lost time injury frequency rate3 Health and safety performance, based on own personnel figures and contractors lost time injury frequency rate, improved to1.8x for the year 2010 from 1.9x for the year 2009 with significant improvement in mining operations and the Distribution Solutions segment, offset by deterioration in the Flat Carbon Europe segment. Safety performance improved to 1.6x for the fourth quarter of 2010 as compared to 1.9x in the third quarter of 2010, with improvement in the safety performance of our mining operations, Long Carbon Americas and Europe, and Asia Africa and CIS operations only partially offset by deterioration in the Flat Carbon Americas and Distribution Solutions operations. Own personnel and contractors - Frequency Rate Lost time injury frequency rate   4Q 10   3Q 10   4Q 09   12M 10   12M 09 Total Mines   1.1   1.7   1.9   1.5   2.4                       Lost time injury frequency rate   4Q 10   3Q 10   4Q 09   12M 10   12M 09 Flat Carbon Americas   2.0   1.7   2.7   1.8   2.1 Flat Carbon Europe   2.27   2.1   2.0   2.3   1.8 Long Carbon Americas and Europe   1.7   2.3   1.6   2.0   1.8 Asia Africa and CIS   0.9   1.2   1.3   0.9   1.1 Distribution Solutions   2.8   2.3   3.2   2.7   3.9 Total Steel   1.7   1.9   1.9   1.8   1.8                       Lost time injury frequency rate   4Q 10   3Q 10   4Q 09   12M 10   12M 09 Total (Steel and Mines)   1.6   1.9   1.9   1.8   1.9Key initiatives for the three months ended December 31, 2010 ArcelorMittal announces the launch of its Responsible Sourcing program ArcelorMittal's substantial supply chain footprint provides unique opportunities for promoting sustainable business practices. In order to formalize this, ArcelorMittal has launched a responsible sourcing program, which incorporates health and safety, human rights, and ethical and environmental principles into ArcelorMittal's procurement approach. The first phase of communicating the Code for Responsible Sourcing to the company's key global suppliers is underway, as well as a pilot to incorporate this into the annual supplier evaluation process. ArcelorMittal unveiled the results of its “S-in motion” automotive research program Developed through direct technical collaboration with leading automotive manufacturers, the S-in motion portfolio comprises a range of over 60 innovative Press-Hardened Steel (PHS) and Advanced High-Strength Steel (AHSS) solutions that can be implemented in vehicles today, delivering direct benefits to both car makers and consumers in terms of weight, safety and efficiency. The pioneering S-in motion program represents the culmination of a major, two-year research program across ArcelorMittal's six specialized automotive research centres, and is expected to deliver numerous benefits for ArcelorMittal's automotive customers. ArcelorMittal Foundation celebrates its 3rd International Volunteer Work Day On December 3, 2010, ArcelorMittal units around the world organised volunteer work activities for their employees that benefitted local communities. Employees and senior management actively supported more than 200 activities; representing over 12,000 hours of volunteer work. Initiatives included blood donation; tree-planting; repairing schools, orphanages and sports facilities; and staging cultural events. Analysis of results for the twelve months ended December 31, 2010 versus results for the twelve months ended December 31, 2009 ArcelorMittal's net income for the twelve months ended December 31, 2010 was $2.9 billion, or $1.93 per share, as compared to net income for the twelve months ended December 31, 2009 of $0.2 billion, or $0.11 per share. Total steel shipments for the twelve months ended December 31, 2010 increased by 22% to 85.0 million metric tonnes as compared with 69.6 million metric tonnes for the twelve months ended December 31, 2009. Sales for the twelve months ended December 31, 2010 were $78.0 billion, as compared with sales for the twelve months ended December 31, 2009 of $61.0 billion. The increase was due to the improvement in global steel markets in the wake of the global economic crisis, leading to margin recovery and higher steel shipments. Depreciation costs for the twelve months ended December 31, 2010 were $4.4 billion as compared with depreciation costs of $4.6 billion for the twelve months ended December 31, 2009. Impairment losses for the twelve months ended December 31, 2010 amounted to $525 million and included $305 million relating to the Company's coal mines in Russia, (including the disposal of the Anzherskaya mine), $113 million relating to several subsidiaries in the Distribution Solutions segment (primarily reflecting continued construction market weakness), and $107 million primarily relating to idle downstream assets in the European business. Impairment losses for the twelve months ended December 31, 2009 were $552 million.6 Operating income for the twelve months ended December 31, 2010 was $3.6 billion, as compared with an operating loss7 of $1.5 billion for the twelve months ended December 31, 2009. Operating performance for the twelve months ended December 31, 2010 was positively impacted by a net gain of $140 million recorded on the sale of carbon dioxide credits, the proceeds of which will be re-invested in energy saving projects, and by non-cash gains of $354 million relating to unwinding of hedges on raw material purchases. Operating performance for the twelve months ended December 31, 2009 had been negatively impacted by an exceptional charge of $2.4 billion (pre-tax) related primarily to write down on inventory and provisions for workforce reductions. This was partly offset by an exceptional gain of $380 million relating to a reversal of litigation provisions, a net gain of $108 million recorded on the sale of carbon dioxide credits, which was re-invested in energy saving projects and a non-cash gain of $979 million relating to unwinding of hedges on raw material purchases. Income from equity method investments and other income for the twelve months ended December 31, 2010 was $451 million, as compared to $56 million for the twelve months ended December 31, 2009. The increase was due primarily to improvement in the underlying operations and results of the Company's equity investments as a result of better economic conditions in 2010. Net interest expense (including interest expense and interest income) was $1.4 billion for the twelve months ended December 31, 2010 as compared to $1.5 billion for the twelve months ended December 31, 2009. Interest cost decreased during the year in line with lower average net debt. During the twelve months ended December 31, 2010, the Company also recorded a non-cash gain of $427 million primarily as a result of mark-to-market adjustments on the conversion options embedded in its euro and dollar-denominated convertible bonds issued in 20098. During the twelve months ended December 31, 2009, the Company recorded a non-cash loss of $897 million attributable to these adjustments. On December 14, 2010 and December 18, 2010, respectively, the Company acquired 61.7 million euro-denominated call options and 26.5 million dollar-denominated call options on its own shares in order to hedge its obligations under these convertible bonds. As a result, no additional mark-to-market gains or losses on the embedded derivatives in the convertible bonds are expected going forward. Foreign exchange and other net financing costs9 were $1.2 billion for the twelve months ended December 31, 2010, as compared to $0.5 billion for the twelve months ended December 31, 2009. In 2010 the Company recorded foreign exchange losses of $0.3 billion primarily on monetary assets held in foreign currencies compared to a gain of $0.5 billion in 2009. Income tax benefit for the twelve months ended December 31, 2010 amounted to $1.5 billion, as compared to an income tax benefit for the twelve months ended December 31, 2009 of $4.4 billion. The lower income tax benefit for the year was primarily due to ArcelorMittal's 2010 profit as compared with its 2009 pre-tax loss. Income attributable to non-controlling interest for the twelve months ended December 31, 2010 amounted to $89 million as compared with losses attributable to non-controlling interest for the twelve months ended December 31, 2009 of $43 million. This change results from higher income in subsidiaries with non-controlling interest following the underlying improvement of market conditions in 2010. The discontinued operations line2 comprises exclusively the post-tax net results contributed by the stainless steel business now known as Aperam which was spun-off from ArcelorMittal on January 25, 2011. For the twelve months ended on December 31, 2010 this amounted to losses of $330 million. On a stand alone basis Aperam is reporting a net profit of $104 million for the twelve months ended on December 31, 2010. The reconciling items are as follows: (-) Recognition by ArcelorMittal of non-cash impairment charge of $598 million following the reclassification of the stainless segment as a discontinued operation. As required by IFRS (IFRS 5), and upon reclassification of the business as assets held for distribution, the assets and liabilities must be carried at the lower of their carrying amount and fair value less costs to distribute (the amount is lower than initially anticipated in the press release published on December 8, 2010 as a result of updated valuations). (+) Elimination by ArcelorMittal of $120 million of interest charges on intra group loans and other intra group transactions between the stainless segment and other group companies. Discontinued operations in ArcelorMittal statements of operations are reported after full elimination of intra group transactions between the stainless segment and other group companies. Other adjustments account for $44 million. In Aperam stand alone statement of operations transactions with ArcelorMittal are not eliminated. Analysis of results for the three months ended December 31, 2010 versus the three months ended September 30, 2010 and the three months ended December 31, 2009 ArcelorMittal recorded a net loss for the three months ended December 31, 2010 of $0.8 billion, or $0.51 loss per share, as compared with net income of $1.4 billion, or $0.89 per share, for the three months ended September 30, 2010, and net income of $1.1 billion,or $0.73 per share, for the three months ended December 31, 2009. Total steel shipments for the three months ended December 31, 2010 were 21.1 million metric tonnes as compared with 20.5 million metric tonnes for the three months ended September 30, 2010, and 19.5 million metric tonnes for the three months ended December 31, 2009. Sales for the three months ended December 31, 2010 increased 4.8% to $20.7 billion as compared with $19.7 billion for the three months ended September 30, 2010, and were up 18.7% as compared with $17.4 billion for the three months ended December 31, 2009. Sales were higher during the fourth quarter of 2010 as compared to the third quarter of 2010 primarily due to higher shipment volumes (+3%). Depreciation expense of $1.1 billion for the three months ended December 31, 2010 was flat as compared to the three months ended September 30, 2010 and slightly down from $1.2 billion for the three months ended December 31, 2009. Impairment losses for the three months ended December 31, 2010 was $381 million, and included $186 million relating to the Company's coal mines in Russia, $113 million relating to certain subsidiaries in the Distribution Solutions segment (primarily reflecting continued construction market weakness) and $82 million primarily relating to idle downstream assets in the European business. Impairment cost for the three months ended September 30, 2010 was $26 million relating to impairment of a pickling line in Liege, Belgium. Impairment losses for the three months ended December 31, 2009 had amounted to $488 million10. Operating income for the three months ended December 31, 2010 was $0.4 billion, as compared with operating income of $1.0 billion for the three months ended September 30, 2010 and operating income of $0.7 billion for the three months ended December 31, 2009. The drop in operating income resulted from higher operating costs, primarily due to a rise in raw materials cost, while steel selling prices were generally lower for the quarter. In addition, operating performance for the three months ended December 31, 2010 included a non-cash gain of $88 million relating to unwinding of hedges on raw material purchases as compared to an $82 million gain recorded in the three months ended September 30, 2010. Fourth quarter 2010 operating performance was also positively impacted by a net gain of $140 million recorded on the sale of carbon dioxide, the proceeds of which will be re-invested in energy saving projects. Operating performance for the three months ended December 31, 2009 had been positively impacted by an exceptional gain of $380 million relating to a reversal of litigation provisions and a net gain of $108 million recorded on the sale of carbon dioxide credits the proceeds of which were re-invested in energy saving projects. Income from equity method investments and other income for the three months ended December 31, 2010 was $74 million, as compared to $107 million and $100 million for the three months ended September 30, 2010 and December 31, 2009, respectively. Net interest expense (including interest expense and interest income) increased to $413 million for the three months ended December 31, 2010 from $376 million for the three months ended September 30, 2010, primarily due to the impact of exchange rate fluctuations and higher interest on account of new bonds issued. Net interest expense for the three months ended December 31, 2009 was $413 million. During the three months ended December 31, 2010, the Company also recorded a non-cash loss of $293 million, as compared to a $24 million non-cash gain in the third quarter of 2010 and a $430 million non-cash loss for the three months ended December 31, 2009, as a result of mark-to-market adjustments relating to its convertible bonds issued in 2009. As a result of the December 2010 dilution management hedging transactions, no additional mark-to-market gains or losses on the embedded derivatives in the convertible bonds are expected going forward. Foreign exchange and other net financing costs were $494 million for the three months ended December 31, 2010 as compared to $31 million for the three months ended September 30, 2010. During the three months ended December 31, 2010 a 2.1% appreciation of the USD resulted in a foreign exchange loss of $0.1 billion on deferred tax assets of approximately €4.0 billion as compared to a foreign exchange gain of $0.5 billion in the three months ended September 30, 2010 when the USD depreciated by 11.47%. Foreign exchange and other net financing costs for the three months ended December 31, 2009 had amounted to $70 million. ArcelorMittal recorded an income tax benefit of $450 million for the three months ended December 31, 2010, as compared to an income tax benefit of $576 million for the three months ended September 30, 2010. The income tax benefit for the three months ended December 31, 2009 was $1.2 billion. Losses attributable to non-controlling interests for the three months ended December 31, 2010 was $46 million as compared with income of $16 million and $74 million for the three months ended September 30, 2010 and December 31, 2009, respectively. Fourth quarter 2010 losses attributable to non-controlling interests was primarily related to ArcelorMittal South Africa among other subsidiaries. The discontinued operations line2 comprises exclusively the post-tax net results contributed by the stainless steel business now known as Aperam which was spun-off from ArcelorMittal on January 25, 2011. For the three months ended on December 31, 2010 this amounted to losses of $547 million. On a stand alone basis Aperam is reporting a net profit of $2 million for the three months ended on December 31, 2010. The reconciling items are as follows: (-) Recognition by ArcelorMittal of non-cash impairment charge of $598 million following the reclassification of the stainless segment as discontinued operation. As required by IFRS (IFRS 5), and upon reclassification of the business as assets held for distribution, the assets and liabilities must be carried at the lower of their carrying amount and fair value less costs to distribute (the amount is lower than initially anticipated in the press release published on December 8, 2010 as a result of updated valuations). (+) Elimination by ArcelorMittal of $49 million of interest charges on intra group loans and other intra group transactions between the stainless segment and other group companies. Discontinued operations in ArcelorMittal statements of operations are reported after full elimination of intra group transactions between the stainless segment and other group companies. In Aperam stand alone statement of operations transactions with ArcelorMittal are not eliminated. Capital expenditure projects The following tables summarize the Company's principal growth and optimization projects involving significant capital expenditures. Completed Projects in Most Recent 4 Quarters                   Segment   Site   Project   Capacity / particulars   Actual Completion FCA   ArcelorMittal Tubarão (Brazil)   Vega do Sul expansion plan   Increase in HDG production of 350kt / year   2Q 10 FCA   ArcelorMittal Dofasco (Canada)   Primary steelmaking optimization   Increase of slab capacity by 630kt / year   2Q 10 FCE   ArcelorMittal Dunkerque (France)   Modernization of continuous caster No.21   Slab capacity increase by 0.8mt / year   4Q 10 -   Princeton Coal (USA)   Underground mine expansion   Capacity increase by 0.7mt   Jan 11 Ongoing(a) Projects                   Segment   Site   Project   Capacity / particulars   Forecasted Completion -   Liberia mines   Greenfield Liberia   Iron ore production of 15mt / year upon full ramp-up   2011(b) LCA   Monlevade (Brazil)   Wire rod production expansion   Increase in capacity of finished products by 1.15mt   2012 LCA   Andrade Mines (Brazil)   Andrade expansion   Increase iron ore production to 3.5mt / year   2012 FCA   ArcelorMittal Mines Canada   Replacement of spirals for enrichment   Increase iron ore production by 0.8mt / year   2013 FCA   ArcelorMittal Dofasco (Canada)   Optimization of galvanizing and galvalume operations   Optimize cost and increase galvalume production by 0.1mt / year   2013 a) Ongoing projects refer to projects for which construction has begun and exclude various projects that are under development such as in India. b) Iron ore mining production is expected to commence in 2011 with initial annual production of 1 million tonnes. Projects through Joint Ventures                   Country   Site   Project   Capacity / particulars   Forecasted completion Saudi Arabia   Al-Jubail   Seamless tube mill   Capacity of 600kt of seamless tube   2012 China   Hunan Province   VAMA Auto Steel JV   Capacity of 1.2mt for the auto market   To be determined China   Hunan Province   VAME Electrical Steel JV   Capacity of 0.3mt of electrical steel   To be determined Iraq   Sulaimaniyah (Northern Iraq)   Rebar Mill   Rebar capacity of 0.25mt / year   To be determined Analysis of segment operations for the three months ended December 31, 2010 as compared to the three months ended September 30, 2010Flat Carbon Americas                       (USDm) unless otherwise shown   4Q 10   3Q 10   4Q 09   12M 10   12M 09 Sales   $4,985   $4,750   $4,069   $19,301   $13,340 EBITDA   541   771   524   2,960   1,119 Operating Income / (Loss)   378   521   180   2,044   (757)                       Crude Steel Production ('000t)   5,636   5,932   5,402   23,101   16,556 Steel Shipments ('000t)   5,432   4,979   4,834   21,028   16,121 Average Steel Selling Price (US$/t)   769   826   719   781   698 EBITDA/tonne (US$/t)   100   155   108   141   69 Operating Income (loss) /tonne (US$/t)   70   105   37   97   (47) Flat Carbon Americas crude steel production amounted to 5.6 million tonnes for the three months ended December 31, 2010, a decline of 5.0% as compared to 5.9 million tonnes for the three months ended September 30, 2010. During the fourth quarter production was negatively impacted by disruption in the coal handling port used by our South American operations. Shipments for the fourth quarter of 2010 were 5.4 million tonnes, an increase of 9.1% as compared to 5.0 million tonnes for the three months ended September 30, 2010. The increase was due to increased slab deliveries from our South American and Mexican operations. Brazilian domestic shipments were lower as local producers were impacted by continued de-stocking by distributors and lower priced imports. Sales in the Flat Carbon Americas segment were $5.0 billion for the three months ended December 31, 2010, an increase of 4.9% as compared to $4.8 billion for the three months ended September 30, 2010. Sales increased primarily due to higher steel shipments (+9.1%) partly offset by lower average steel selling prices (-6.9%). EBITDA in the fourth quarter declined to $541 million, 29.8% lower than in the previous quarter. The decrease was driven primarily by lower steel selling prices, whilst the contribution from mining operations remained stable quarter on quarter. Flat Carbon Europe                       (USDm) unless otherwise shown   4Q 10   3Q 10   4Q 09   12M 10   12M 0917 Sales   $6,818   $6,267   $5,934   $25,550   $19,981 EBITDA   563   476   696   2,063   1,946 Operating Income / (Loss)   163   104   269   583   (501)                       Crude Steel Production ('000t)   7,006   7,107   7,410   30,026   22,752 Steel Shipments ('000t)   6,593   6,521   6,408   27,510   21,797 Average Steel Selling Price (US$/t)   907   855   807   821   799 EBITDA/tonne (US$/t)   85   73   109   75   89 Operating Income (loss) /tonne (US$/t)   25   16   42   21   (23) Flat Carbon Europe crude steel production amounted to 7.0 million tonnes for the three months ended December 31, 2010, a decline of 1.4% as compared to 7.1 million tonnes for the three months ended September 30, 2010. Shipments for the three months ended December 31, 2010 were 6.6 million tonnes, a slight increase of 1.1% as compared to 6.5 million tonnes for the three months ended September 30, 2010. Sales in the Flat Carbon Europe segment were $6.8 billion for the three months ended December 31, 2010 an increase of 8.8% as compared to $6.3 billion for the three months ended September 30, 2010. Sales increased primarily due to the appreciation of the euro against the US dollar (as the average euro/US dollar exchange rate rose 5% from 1.29 in the third quarter to 1.36 in the fourth quarter), which contributed to higher average selling prices in US dollar terms, as well as marginally higher steel shipments. EBITDA for the three months ended December 31, 2010 was $563 million, an 18.3% increase as compared to $476 million for the three months ended September 30, 2010. EBITDA in the fourth quarter was positively impacted by a $140 million gain on sale of carbon dioxide credits that ArcelorMittal will fully re-invest in energy savings project within the Flat Carbon Europe perimeter. Excluding this gain, EBITDA in the fourth quarter 2010 was down 11.1% to $423 million due to higher costs. Operating results in the fourth quarter of 2010 were positively impacted by an $88 million non-cash gain relating to the unwinding of hedges on raw material purchases and the gain of $140 million recorded on the sale of carbon dioxide credits referred to above, which were partly offset by a $37 million charge primarily relating to idle downstream assets. Operating results in the third quarter of 2010 had included a $26 million charge relating to impairment of a pickling line in Liege, Belgium, and a $82 million non-cash gain relating to hedges on raw material purchases. Long Carbon Americas and Europe                       (USDm) unless otherwise shown   4Q 10   3Q 10   4Q 09   12M 10   12M 09 Sales   $5,574   $5,527   $4,578   $21,345   $16,767 EBITDA   343   633   482   2,165   1,666 Operating Income / (Loss)   48   363   (79)   1,068   (29)                       Crude Steel Production ('000t)   5,325   5,472   5,356   22,550   18,901 Steel Shipments ('000t)   5,698   5,772   5,228   23,148   19,937 Average Steel Selling Price (US$/t)   837   832   755   802   743 EBITDA/tonne (US$/t)   60   110   92   94   84 Operating Income (loss) /tonne (US$/t)   8   63   (15)   46   (1) Long Carbon Americas and Europe crude steel production reached 5.3 million tonnes for the three months ended December 31, 2010, a decrease of 2.7% as compared to 5.5 million tonnes for the three months ended September 30, 2010 due mainly to a seasonal slowdown in Brazil. Shipments for the three months ended December 31, 2010 were 5.7 million tonnes, a slight decline of 1.3% as compared to 5.8 million tonnes for the three months ended September 30, 2010, primarily due to the seasonal slowdown in the South American operations. Sales in the Long Carbon Americas and Europe segment were $5.6 billion for the three months ended December 31, 2010, essentially flat as compared to $5.5 billion for the three months ended September 30, 2010. Overall average steel selling prices remained stable in US Dollar terms quarter on quarter, but declined in local currency. EBITDA for the three months ended December 31, 2010 was $343 million, a 45.8% decline as compared to $633 million for the three months ended September 30, 2010. The decrease was primarily due to Long Carbon Americas which had a seasonal reduction in volumes, reduced production resulting in higher fixed costs as well as an overall reduction in prices in local currency. In Long Carbon Europe lower steel selling prices in local currency also contributed to a decline in EBITDA. The third quarter of 2010 EBITDA included $67 million relating to income associated with the revaluation of the Bioenergia forestry assets. Asia Africa and CIS (“AACIS”)                       (USDm) unless otherwise shown   4Q 10   3Q 10   4Q 09   12M 10   12M 09 Sales   $2,582   $2,558   $2,274   $9,848   $7,627 EBITDA   281   360   310   1,399   1,002 Operating Income / (Loss)   123   208   167   802   265                       Crude Steel Production ('000t)   3,611   3,726   3,899   14,906   13,411 Steel Shipments ('000t)   3,392   3,261   3,075   13,266   11,769 Average Steel Selling Price (US$/t)   621   630   550   608   506 EBITDA/tonne (US$/t)   83   110   101   105   85 Operating Income (loss) /tonne (US$/t)   36   64   54   60   23 AACIS segment crude steel production was 3.6 million tonnes for the three months ended December 31, 2010, a decrease of 3.1% as compared to 3.7 million tonnes for the three months ended September 30, 2010, due primarily to lower production in the South African operations. Shipments for the three months ended December 31, 2010 were 3.4 million tonnes, an increase of 4% as compared to 3.3 million tonnes for the three months ended September 30, 2010, due to higher exports from both the CIS and South African operations. Sales in the AACIS segment remained flat at $2.6 billion for the three months ended December 31, 2010 and for the three months ended September 30, 2010. Average steel selling prices in the fourth quarter were slightly lower in US dollar terms, which was offset by slightly higher shipments. EBITDA for the three months ended December 31, 2010 was $281 million, 21.9% lower as compared to $360 million for the three months ended September 30, 2010. EBITDA in the South African operations declined dramatically during the fourth quarter of 2010 primarily due to production disruptions and weakness in the domestic market. EBITDA in the CIS operations improved during the fourth quarter of 2010 as compared to the third quarter of 2010, due to higher shipments and selling prices. Distribution Solutions11                       (USDm) unless otherwise shown   4Q 10   3Q 10   4Q 09   12M 10   12M 09 Sales   $4,276   $3,977   $3,489   $15,744   $13,524 EBITDA   87   126   39   457   (97) Operating Income / (Loss)   (64)   82   230   164   (286)                       Steel Shipments ('000t)   4,751   4,467   4,167   18,173   16,794 Average Steel Selling Price (US$/t)   864   855   794   832   767 Shipments in the Distribution Solutions segment for the three months ended December 31, 2010 were 4.8 million tonnes, an increase of 6.4% as compared to 4.5 million tonnes for the three months ended September 30, 2010. Sales in the Distribution Solutions segment were $4.3 billion for the three months ended December 31, 2010 an increase of 7.5% as compared to $4.0 billion for the three months ended September 30, 2010. Sales increased primarily due to higher steel shipments (+6.4%) and marginally higher average steel selling prices in US dollar terms (+1.1%). EBITDA for the three months December 31, 2010 was $87 million, 31% lower as compared to $126 million for the three months ended September 30, 2010 due to lower selling prices in local currency and higher costs. EBITDA and operating results in the fourth quarter of 2010 had been negatively impacted by a $113 million charge relating to impairment on certain subsidiaries, primarily reflecting continued construction market weakness. Stainless Steel (Discontinued operations)12 The successful spin-off of the stainless steel business took place following shareholders' approval on January 25, 2011. Accordingly, results of the stainless steel operations in Q4 2010 have been presented as discontinued operations. Prior period results and operational KPIs have been adjusted to reflect the new presentation2. A summary of the Aperam results for the fourth quarter of 2010 are as follows (see separate Aperam press release for full details). Liquidity and Capital Resources For the three months ended December 31, 2010, net cash provided by operating activities was $3.6 billion, compared to $0.8 billion for the three months ended September 30, 2010. The cash flow from operating activities for the fourth quarter of 2010 include a $2.1 billion release in operating working capital as compared to a $1.0 billion investment in operating working capital in the third quarter of 2010. With decreased capacity utilization levels during the fourth quarter of 2010 and tight working capital management, rotation days13 decreased to 57 days during the fourth quarter of 2010 from 75 days in the third quarter of 2010. Fourth quarter 2010 cash from other operating activities also include $710 million receipts from the company's true sale of receivables program. Net cash used in investing activities for the three months ended December 31, 2010 was $1.2 billion, as compared to $0.8 billion for the three months ended September 30, 2010. Capital expenditures increased to $1.4 billion for the three months ended December 31, 2010 as compared to $0.8 billion for the three months ended September 30, 2010. Other investing activities in the fourth quarter of 2010 of $235 million include an inflow of $171 million related to proceeds from the sale of bonds in Ukraine received from the local government in exchange for VAT receivables. During the third quarter of 2010 the Company subscribed to a capital increase in MacArthur Coal Ltd. for $65 million and paid $51 million in connection with the acquisition of minority interests in Ostrava (a transaction concluded in 2009). Capital expenditures increased to $3.3 billion for the twelve months ended December 31, 2010 as compared to $2.7 billion, for the twelve months ended December 31, 2009. In 2011, the Company expects capital expenditures to total approximately $5.0 billion. Net cash provided by financing activities for the three months ended December 31, 2010 was $0.6 billion, as compared to $0.8 billion for the three months ended September 30, 2010. On November 18, 2010 the Company announced the issuance of €1 billion in 4.625 per cent notes due November 17, 2017 (yield 4.742%), under its €3 billion Euro Medium Term Notes Programme. The proceeds were used to repay outstanding debt. During the fourth quarter of 2010 the Company sold 37.98 million of treasury shares for total proceeds of $1.4 billion. The proceeds were used to fund the purchase of call options to purchase 88.2 million ArcelorMittal shares. As disclosed in the press releases of December 14, 2010 and December 27, 2010, the acquired call options allow the Company to hedge its obligations under its 7.25% and 5.0% bonds convertible into and/or exchangeable for new or existing ArcelorMittal shares due April 1, 2014 and May 15, 2014, respectively. During the fourth quarter of 2010, the Company paid dividends amounting to $335 million as compared to $331 million in the third quarter of 2010. Dividends paid during the fourth quarter of 2010 include $282 million to the parent company shareholders and $53 million paid to minority shareholders in subsidiaries. At December 31, 2010, the Company's cash and cash equivalents (including restricted cash and short-term investments) amounted to $6.3 billion as compared to $3.5 billion at September 30, 2010. During the quarter, net debt decreased by $2.3 billion to $19.7 billion as compared with $22.1 billion at September 30, 2010. The Company had liquidity of $17.614 billion at December 31, 2010, compared with liquidity of $14.9 billion at September 30, 2010, consisting of cash and cash equivalents (including restricted cash and short-term investments) of $6.3 billion and $11.3 billion of available credit lines. In connection with the spin-off of Aperam to the Company's shareholders, ArcelorMittal has provided a $900 million one-year bridge loan put in place in order to ensure that the Aperam transaction was credit neutral for ArcelorMittal. Following the effectiveness of the spin-off, the bridge loan is recorded as a receivable from Aperam. Aperam is currently in talks with banks regarding new financings, the proceeds of which would be used to repay the bridge loan. Dividend maintained at $0.75 per share for 2011 The Board of Directors will submit to a shareholders' vote, at the next annual general meeting, a proposal to maintain the quarterly dividend payment at $0.1875 per share. The dividend payments would occur on a quarterly basis for the full year 2011, on March 14, 2011, June 14, 2011, September 12, 2011 and December 12, 2011, taking into account that the first quarter dividend payment to be paid on March 14, 2011 shall be an interim dividend. Final payment of current year dividend of $0.1875 per share was made on December 15, 2010. Update on management gains, fixed cost reduction program and capacity utilization At the end of the fourth quarter of 2010, the Company's annualized sustainable savings increased to $3.2 billion as compared to $2.9 billion at the end of September 30, 2010. The Company maintains its target to reach management gains of $4.8 billion (revised plan excluding Aperam) of sustainable SG&A, fixed cost reductions and continuous improvement by end of 2012. Capacity utilization decreased to approximately 69% in the fourth quarter of 2010, as compared to approximately 71% in the third quarter of 2010 due to weak market demand. Recent Developments On January 14, 2011 ArcelorMittal and Nunavut Iron announced a joint offer for Baffinland (70% ArcelorMittal and 30% Nunavut). Then on February 7, 2011 ArcelorMittal and Nunavut Iron announced they have taken-up over 90% of the outstanding Common Shares on a non-diluted basis (or approximately 89% of the outstanding Common Shares on an in-the-money, fully diluted basis) of Baffinland under this offer. ArcelorMittal has now acquired a sufficient number of common shares of Baffinland to permit it to effect one or more subsequent acquisition transactions to mandatorily acquire any remaining outstanding securities of Baffinland. Any such transaction is expected to be completed by the end of the first quarter however in the meantime the offer deadline has been extended until February 17, 2011. In addition on January 27, 2011 ArcelorMittal, Nunavut Iron Ore Acquisition Inc. and Baffinland Iron Mines Corporation (“Baffinland”) announced changes to the Baffinland Board of Directors. On January 25, 2011, an extraordinary general meeting of shareholders of ArcelorMittal approved all resolutions on the agenda including the primary one, the spin-off of ArcelorMittal's stainless and specialty steels business into Aperam, a newly created company. In total 963,117,270 shares, or 61.7 % of the Company's share capital, were present or represented at the meeting. The primary resolution on the meeting's agenda was adopted by the shareholders by an overwhelming majority. Full technical, legal and commercial details relating to the spin-off of ArcelorMittal's stainless and specialty steels business into Aperam are available on ArcelorMittal's website www.arcelormittal.com under "Investors and Shareholders - Extraordinary General Meeting 25 January 2011". On January 25, 2011, the Company announced that François Pinault will step down from his position as a member of the Board of Directors effective January 26, 2010. Mr. Pinault, 74, joined the Board of Mittal Steel Company in June 2006 and has been an independent director of ArcelorMittal since the Company's inception in November 2007. In transactions conducted on December 14, 2010 and December 18, 2010, respectively ArcelorMittal acquired euro-denominated call options on 61,728,395 of its own shares and US dollar-denominated call options on 26,533,997 of its own shares, with strike prices of €20.25 and $30.15 per share, respectively, allowing it to hedge its obligations arising out of the potential conversion of its euro-denominated 7.25% convertible bonds due 2014 (OCEANE) and its U.S. dollar denominated 5% convertible notes due 2014. ArcelorMittal also sold 26.48 million treasury shares for a price of €26.4227 per share in connection with the euro-denominated call option purchase, and 11.5 million treasury shares for a price of $37.8682 per share in connection with the U.S. dollar-denominated call option purchase, both through over-the-counter block trades. For further information about some of these recent developments, please refer to our website www.arcelormittal.com First quarter of 2011 outlook First quarter 2011 EBITDA is expected to be approximately $2.0 - $2.5 billion. Shipment volumes, average steel selling prices and EBITDA/tonne are expected to increase as compared to the fourth quarter of 2010, while capacity utilization levels are expected to improve to approximately 76%. Additionally, operating costs are expected to increase as compared to the fourth quarter of 2010 due to higher raw material prices. The Company expects working capital requirements and net debt to increase in the first quarter 2011 in line with the increased activity levels, higher raw material costs and increased investment activity (including M&A). The Company expects its full year 2011 capex spend to reach $5 billion, of which $1.4 billion is estimated to be spent on mining. ARCELORMITTAL CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION                       In millions of U.S. dollars           December 31,2010   September 30,2010   December 31,200917ASSETS                     Cash and cash equivalents including restricted cash           $6,289   $3,477   $6,009 Trade accounts receivable and other           5,725   7,578   5,750 Inventories           19,583   21,625   16,835 Prepaid expenses and other current assets           4,160   4,756   4,213 Assets held for distribution           6,918   0   0 Total Current Assets           42,675   37,436   32,807                       Goodwill and intangible assets           14,373   16,443   17,034 Property, plant and equipment           54,344   57,568   60,385 Investments in affiliates and joint ventures and other assets       19,512   19,179   17,471 Total Assets           $130,904   $130,626   $127,697                       LIABILITIES AND SHAREHOLDERS' EQUITY                     Short-term debt and current portion of long-term debt           $6,716   $5,359   $4,135 Trade accounts payable and other           13,256   13,249   10,676 Accrued expenses and other current liabilities           8,714   8,855   8,680 Liabilities held for distribution           2,037   0   0 Total Current Liabilities           30,723   27,463   23,491                       Long-term debt, net of current portion           19,292   20,177   20,677 Deferred tax liabilities           4,006   5,126   5,144 Other long-term liabilities           10,783   11,643   12,948 Total Liabilities           64,804   64,409   62,260                       Equity attributable to the equity holders of the parent           62,430   62,475   61,084 Non–controlling interests           3,670   3,742   4,353 Total Equity           66,100   66,217   65,437Total Liabilities and Shareholders' Equity           $130,904   $130,626   $127,697 ARCELORMITTAL CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS             Three months ended   Twelve months ended In millions of U.S. dollars   December 31,2010   September 30,2010   December 31,2009   December 31,2010   December 31,200917 Sales   $20,699   $19,744   $17,434   $78,025   $61,021 Depreciation   (1,075)   (1,108)   (1,235)   (4,395)   (4,574) Impairment   (381)   (26)   (488)   (525)   (552) Exceptional items7   0   0   380   0   (1,944) Operating income / (loss)   397   1,028   713   3,605   (1,470) Operating margin %   1.9%   5.2%   4.1%   4.6%   (2.4%)                       Income (loss) from equity method investments and other income   74   107   100   451   56 Net interest expense   (413)   (376)   (413)   (1,445)   (1,500) Mark to market on convertible bonds   (293)   24   (430)   427   (897) Foreign exchange and other net financing gains (losses)   (494)   (31)   (70)   (1,182)   (450) Income (loss) before taxes and non-controlling interest   (729)   752   (100)   1,856   (4,261) Income tax benefit (expense)   450   576   1,243   1,479   4,432 Income (loss) from continuing operations including non-controlling interest   (279)   1,328   1,143   3,335   171 Non-controlling interests (relating to continuing operations)   46   (16)   (74)   (89)   43 Income (loss) from continuing operations   (233)   1,312   1,069   3,246   214 Discontinued operations   (547)   38   40   (330)   (57) Net income (loss) attributable to owners of the parent   $(780)   $1,350   $1,109   $2,916   $157                       Basic earnings (loss) per common share   (0.51)   0.89   0.73   1.93   0.11 Diluted earnings (loss) per common share   (0.51)   0.89   0.70   1.72   0.11                       Weighted average common shares outstanding (in millions)   1,515   1,510   1,509   1,512   1,445 Adjusted diluted weighted average common shares outstanding (in millions)   1,516   1,537   1,537   1,600   1,446                       EBITDA4   $1,853   $2,162   $2,056   $8,525   $5,600 EBITDA Margin %   9.0%   11.0%   11.8%   10.9%   9.2%                       OTHER INFORMATION                     Total iron ore production15   18.9   17.4   15.6   68.5   52.7 Crude steel production (million metric tonnes)   21.6   22.2   22.1   90.6   71.6 Total shipments of steel products16   21.1   20.5   19.5   85.0   69.6                       Employees (in thousands)   263   266   271   263   271 ARCELORMITTAL CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS           In millions of U.S. dollars   Three Months Ended   Twelve Months Ended     December 31, 2010   September 30, 2010   December 31, 2009   December 31, 2010   December 31, 200917Operating activities:                     Net (loss) income from continuing operations   $(233)   $1,312   $1,069   $3,246   $214 Adjustments to reconcile net (loss) income to net cash provided by operations:                     Non-controlling interest   (46)   16   74   89   (43) Depreciation and impairment   1,456   1,134   1,723   4,920   5,126 Exceptional items7   -   -   (380)   -   1,944 Deferred income tax   (595)   (785)   (1,536)   (2,300)   (4,813) Change in operating working capital18   2,139   (1,045)   1,363   (2,531)   6,475 Other operating activities (net)   602   88   362   346   (1,885) Net cash provided by operating activities - Continued operations   3,323   720   2,675   3,770   7,018 Net cash provided by operating activities - Discontinued operations   245   60   140   245   260 Net cash provided by (used in) operating activities   3,568   780   2,815   4,015   7,278Investing activities:                     Purchase of property, plant and equipment and intangibles   (1,379)   (787)   (773)   (3,308)   (2,709) Other investing activities (net)   235   (26)   (37)   (28)   30 Net cash used in investing activities - Continued operations   (1,144)   (813)   (810)   (3,336)   (2,679) Net cash used in investing activities - Discontinued operations   (34)   (22)   (41)   (102)   (105) Net cash used in investing activities   (1,178)   (835)   (851)   (3,438)   (2,784)Financing activities:                     Proceeds (payments) relating to payable to banks and long-term debt   991   1,373   (2,165)   1,992   (8,571) Dividends paid   (335)   (331)   (335)   (1,257)   (1,334) Share buy-back   -   -   -   -   (234) Proceeds from mandatory convertible bond   -   -   750   -   750 Offering of common shares   -   -   -   -   3,153 Premium paid for call option   (1,363)   -   -   (1,363)   - Sale of treasury shares   1,363   -   -   1,363   - Acquisition of non-controlling interest   (4)   (207)   -   (593)   - Other financing activities (net)   (28)   (36)   (37)   (101)   (79) Net cash provided by (used in) financing activities - Continued operations   624   799   (1,787)   41   (6,315) Net cash used in financing activities - Discontinued operations   (12)   (10)   (30)   (48)   (32) Net cash provided by (used in) financing activities   612   789   (1,817)   (7)   (6,347) Net (decrease) increase in cash and cash equivalents   3,002   734   147   570   (1,853) Transferred to held for sale - Discontinued operations   (123)   -   -   (123)   - Effect of exchange rate changes on cash   (58)   242   (60)   (159)   196 Change in cash and cash equivalents   $2,821   $976   $87   $288   $(1,657) Appendix 1a - Key financial and operational information - Fourth Quarter of 2010                       In million of U.S. dollars, except crude steel production, steel shipment and average steel selling price data.   Flat Carbon Americas   Flat Carbon Europe   Long Carbon Americas and Europe   AACIS   Distribution SolutionsFINANCIAL INFORMATION                                           Sales   $4,985   $6,818   $5,574   $2,582   $4,276 Depreciation and impairment   (163)   (400)   (295)   (158)   (151) Operating income (loss)   378   163   48   123   (64) Operating margin (as a % of sales)   7.6%   2.4%   0.9%   4.8%   (1.5%)                       EBITDA4   541   563   343   281   87 EBITDA margin (as a % of sales)   10.8%   8.3%   6.2%   10.9%   2.0% Capital expenditure19   248   364   301   238   63                       OPERATIONAL INFORMATION                     Crude steel production (Thousand MT)   5,636   7,006   5,325   3,611   - Steel shipments (Thousand MT)   5,432   6,593   5,698   3,392   4,751 Average steel selling price ($/MT)20   769   907   837   621   864 Appendix 1 b- Key financial and operational information – Twelve Months of 2010                       In million of U.S. dollars, except crude steel production, steel shipment and average steel selling price data.   Flat Carbon Americas   Flat Carbon Europe   Long Carbon Americas and Europe   AACIS   Distribution SolutionsFINANCIAL INFORMATION                                           Sales   $19,301   $25,550   $21,345   $9,848   $15,744 Depreciation and impairment   (916)   (1,480)   (1,097)   (597)   (293) Operating income (loss)   2,044   583   1,068   802   164 Operating margin (as a % of sales)   10.6%   2.3%   5.0%   8.1%   1.0%                       EBITDA4   2,960   2,063   2,165   1,399   457 EBITDA margin (as a % of sales)   15.3%   8.1%   10.1%   14.2%   2.9% Capital expenditure19   711   793   704   670   124                       OPERATIONAL INFORMATION                     Crude steel production (Thousand MT)   23,101   30,026   22,550   14,906   - Steel shipments (Thousand MT)   21,028   27,510   23,148   13,266   18,173 Average steel selling price ($/MT)20   781   821   802   608   832 Appendix 2a: Steel Shipments by geographical location21               Amounts in thousands of tonnes   Q410   Q310   Q409Flat Carbon America:   5,432   4,979   4,834 North America   3,877   3,680   3,271 South America   1,555   1,299   1,563               Flat Carbon Europe:   6,593   6,521   6,408               Long Carbon America and Europe:   5,698   5,772   5,228 North America   1,060   1,125   1,021 South America   1,312   1,342   1,177 Europe   3,018   3,083   2,838 Other22   308   222   192               AACIS:   3,392   3,261   3,075 Africa   1,179   1,115   1,137 Asia, CIS & Other   2,213   2,146   1,938 Appendix 2b: EBITDA4 by geographical location Amounts in USD millions   Q410   Q310   Q409Flat Carbon America:   $541   $771   $524 North America   484   571   127 South America   57   200   397               Flat Carbon Europe:   563   476   696               Long Carbon America and Europe:   343   633   482 North America   1   64   13 South America   184   414   419 Europe   79   108   43 Other22   79   47   7               AACIS:   281   360   310 Africa   (34)   104   120 Asia, CIS & Other   315   256   190               Distribution Solutions:   87   126   39 Appendix 2c: Iron Ore production                       (Production million tonnes) (a)                         Type   Product   4Q 10   3Q 10   4Q 09 North America (b)   Open Pit   Concentrate and Pellets   7.1   7.4   5.4 South America (d)   Open pit   Lump and Sinter feed   1.4   1.3   0.7 Europe   Open pit   Lump and fines   0.3   0.4   0.3 Africa   Open Pit / Underground   Lump and fines   0.3   0.3   0.3 Asia, CIS & Other   Open Pit / Underground   Concentrate, lump and fines   3.4   3.5   3.3 Captive - iron ore           12.6   13.0   9.9                       North America (c )   Open Pit   Pellets   4.6   2.2   4.1 South America (d)   Open Pit   Lump and Fines   0.0   0.0   0.1 Africa (e)   Open Pit   Lump and Fines   1.8   2.2   1.5 Long term contract - iron ore       6.3   4.4   5.7                       Group           18.9   17.4   15.6 a) Total of all finished production of fines, concentrate, pellets and lumps (includes share of production and strategic long-term contracts). b) Includes own share of production from Hibbing (USA-62.30%), and Pena (Mexico-50%). For 2009, it also includes Wabush (Canada-28.57%), This stake was sold in February 2010. c) Includes long term supply contract with Cleveland Cliffs. d) Includes Andrade mine operated by Vale until November 15, 2009: prices on a cost plus basis. From November 16, 2009 the mine has been operated by ArcelorMittal and included as captive. e) Includes purchases made under July 2010 interim agreement with Kumba (South Africa) Appendix 2d: Coal production                         (Production million tonnes)                       Mine           4Q 10   3Q 10   4Q 09   North America           0.5   0.6   0.5   Asia, CIS & Other           1.3   1.2   1.2   Captive - coal           1.8   1.8   1.7                           North America(a)           0.1   0.1   0.0   Africa(b)           0.0   0.1   0.1   Coal-long term contracts (a),(b)           0.1   0.2   0.1                           Group           1.9   2.0   1.9   a)Includes strategic agreement - prices on a cost plus basis.b)Includes long term lease - prices on a cost plus basis. Appendix 3: Debt repayment schedule as of December 31, 2010                               Debt repayment schedule ($ billion)   2011   2012   2013   2014   2015   >2015   Total Term loan repayments                           - - Under €12bn syndicated credit facility   3.2   -   -   -   -   -   3.2 - Convertible bonds   -   -   -   2.0   -   -   2.0 - Bonds23   -   -   3.5   1.3   1.7   8.1   14.6Subtotal   3.2   -   3.5   3.3   1.7   8.1   19.8LT revolving credit lines                             - €5bn syndicated credit facility   -   -   -   -   -   -   - - $4bn syndicated credit facility   -   -   -   -   -   -   - - $0.6bn bilateral credit facilities   -   -   -   -   -   -   - Commercial paper24   2.2   -   -   -   -   -   2.2 Other loans   1.3   1.3   0.5   0.2   0.3   0.4   4.0Total Gross Debt   6.7   1.3   4.0   3.5   2.0   8.5   26.0 Appendix 4: Credit lines available as of December 31, 2010 Credit lines available ($ billion)       Maturity Equiv. $ Drawn Available €5bn syndicated credit facility25       30/11/2012 $6.7 $0.0 $6.7 $4bn syndicated credit facility       06/05/2013 $4.0 $0.0 $4.0 $0.6bn bilateral credit facilities       30/06/2013 $0.6 $0.0 $0.6Total committed lines         $11.3$0.0$11.3 Appendix 5 - Other ratios Ratios           Q4 10 Q3 10 Gearing26           30% 33% Net debt to average EBITDA ratio based on yearly average EBITDA from Jan 1, 2004     1.4X 1.4X Net debt to EBITDA ratio based on last twelve months EBITDA         2.2X 2.4X Appendix 6 – Earnings Per Share (c) Three months ended Twelve months ended December 31, September 30, December 31, December 31, December 31, In U.S. dollars 2010 2010 2009 2010 2009             Earnings per share - Discontinued operations:           Basic earnings (loss) per common share (0.36) 0.03 0.03 (0.22) (0.04) Diluted earnings (loss) per common share (0.36) 0.03 0.01 (0.31) (0.04)             Earnings per share - Continued operations:           Basic earnings (loss) per common share (0.15) 0.87 0.71 2.15 0.15 Diluted earnings (loss) per common share (0.15) 0.86 0.68 1.92 0.15             Earnings per share:           Basic earnings (loss) per common share (0.51) 0.89 0.73 1.93 0.11 Diluted earnings (loss) per common share (0.51) 0.89 0.70 1.72 0.11 Appendix 7 – End notes 1 The financial information in this press release has been prepared in accordance 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”. Unless otherwise noted the numbers in the 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. 2 Following the approvals by ArcelorMittal's board and shareholders' meetings held on December 7, 2010 and January 25, 2011, respectively, to spin off the stainless steel business into a separately focused company Aperam, the results of the Company's stainless steel operations are shown as discontinued operations in accordance with International Financial Reporting Standard (IFRS) 5 “Non-current Assets Held for Sale and Discontinued Operations”. ArcelorMittal's financial disclosures with respect to the Aperam spin off in this press release are as follows: Statements of Financial Position As of December 31, 2010 all assets related to Aperam entities (current and non-current) are reclassified and disclosed separately in a single line item as “Assets Held for Distribution” (current assets). Likewise, all liabilities are reclassified and disclosed separately in a singe line item as “Liabilities Held for Distribution” (current liabilities). Upon reclassification certain assets must be carried at the lower of their carrying amount and fair value less costs to sell. ArcelorMittal reported a write-down of approximately $0.6 billion (the amount is lower than initially anticipated in the press release published on December 8, 2010 as a result of updated valuations) Prior years in the Statements of Financial Position are not subject to changes in presentation as they are not required to be recast under IFRS. Statements of Operations The Statements of Operations are recast into continuing and discontinued operations. Net post-tax results of discontinued operations are presented in a single line item as “Discontinued Operations”. Additional information detailing discontinued operations will be provided in the footnotes of future earnings releases and the Company's 2010 annual report. Earnings per Share (“EPS”) are presented for continuing and discontinued operations and for total net results – see appendix 6. Prior years and quarters presented in this press release (3Q10, 4Q09 and 2009FY) are recast following the same principles. Statements of Cash Flows The Statements of Cash Flows are recast into continuing and discontinued operations. Contributions from discontinued operations are presented in three separate lines: “Net cash provided by (used in) operating activities -- Discontinued operations”, “Cash used in investing activities -- Discontinued operations” and “Net cash (used in) provided by financing activities --Discontinued operations”. Prior years and quarters presented in this press release (3Q10, 4Q09 and 2009FY) are recast following the same principles. Key Performance Indicators (KPI) Prior period KPI analyses, including EBITDA, presented in this press release (3Q10, 4Q09 and 2009FY) have been recast to exclude the contributions of Aperam entities Guidance for first quarter of 2011 does not include Aperam. 3 Lost time injury frequency rate equals lost time injuries per 1,000,000 worked hours, based on own personnel and contractors. 4 EBITDA is defined as operating income plus depreciation, impairment expenses and exceptional items. 5 Net debt refers to long-term debt, plus short term debt, less cash and cash equivalents, restricted cash and short-term investments. 6 Impairment costs for the twelve months ended December 31, 2009 consisted primarily of $237 million of impairment for various idled assets (including $92 million relating to the impairment of coke oven assets at Galati, Romania and $65 million at Las Truchas, Mexico), $122 million of impairment for various tubular product operations (primarily $65 million in Roman, Romania), and $172 million of other impairments (including $117 million at ArcelorMittal Construction France). 7 During 2009 the Company recorded an exceptional gain of $380 million relating to reversal of litigation costs previously booked in the fourth quarter of 2008 following the Paris Court of Appeals decision to reduce the fine imposed on certain French distribution subsidiaries of ArcelorMittal by the French Competition Authority from €302 million ($441 million) to €42 million ($61 million). This gain was offset by exceptional charges amounting to $2.4 billion pre-tax related primarily to write-downs of inventory ($2.1 billion) and provisions for workforce reduction ($0.3 billion). 8 On April 1, 2009 and May 6, 2009, the Company issued approximately $2.5 billion of bonds which are convertible into its shares at the option of the bondholders. Under the terms of its €1.25 billion euro-denominated convertible bonds due 2014 (OCEANEs), the Company has the option to settle the bonds for shares or for an amount equivalent to the cash value of the shares at the date of the settlement (this cash settlement option was waived in October 2009, with respect to the Company's $800 million US dollar–denominated convertible bonds due 2014). . The Company has determined that the convertible bonds are hybrid instruments as defined by IFRS and has identified certain components of the contracts to be embedded derivatives in accordance with IAS 39. At each reporting period (until, with respect to the USD bonds, the waiver noted above) changes in the fair value of the embedded derivatives (recorded at $597 million at inception) have been recorded to the statement of operations, resulting in gains or losses depending on marking to market. As a result of the hedging transactions undertaken in December 2010 (see “Recent Developments”), no additional mark-to-market gains or losses are expected going forward. 9 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 10 Impairment costs for the three months ended December 31, 2009 of $488 million consisted of $169 million on various idled assets (primarily $65 million at Las Truchas, Mexico), $122 million on various tubular product operations (primarily $65 million in Roman, Romania), and $172 million on other impairment assets (primarily $117 million at ArcelorMittal Construction France). 11 As from January 1, 2010 the Steel Solutions and Services segment has been renamed ArcelorMittal Distribution Solutions (AMDS). 12 The financial information presented for stainless steel operations in ArcelorMittal books may differ from Aperam books, as in ArcelorMittal the discontinued operations are presented on a contributive approach. As a result all inter-company transactions with Aperam continue to be fully eliminated and the portion reported as part of discontinued operations and assets/liabilities held for distribution include only the contribution of Aperam to ArcelorMittal after elimination of intersegment results. Additionally there are differences on account of impairment, goodwill and others. 13 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. Days of accounts receivable are a function of sales. 14 Includes back-up lines for the commercial paper program of approximately $2.7 billion (€2 billion). 15 Total of all finished production of fines, concentrate, pellets and lumps (includes share of production and strategic long-term contracts). (million metric tonnes) 16 ArcelorMittal Distribution Solutions shipments are eliminated in consolidation as they primarily represent shipments originating from other ArcelorMittal operating subsidiaries (million metric tonnes) 17 In accordance with IFRS the Company has adjusted the 2009 financial information retrospectively for the finalization in 2010 of the allocation of purchase price for certain business combinations carried out in 2009. The adjustments have been reflected in the Company's consolidated financial statements for the year ended December 31, 2009. 18 Changes in operating working capital are defined as trade accounts receivable plus inventories less trade accounts payable. 19 Segmental capex includes the acquisition of intangible assets (such as concessions for mining and IT support). 20 Average steel selling prices are calculated as steel sales divided by steel shipments. 21 Shipments originating from a geographical location. 22 Includes Tubular products business 23 $422.5 million US bond due 2014 redeemed early on April 1, 2010 in line with the terms of the indenture. 24 Commercial paper is expected to continue to be rolled over in the normal course of business. 25 Euro denominated loans converted at the Euro: $ exchange rate of 1.3362 as at December 31, 2010. 26 Gearing is defined as (A) long-term debt, plus short-term debt, less cash and cash equivalents, restricted cash and short-term investments, divided by (B) total equity. Contact information ArcelorMittal Investor RelationsEurope, +352 4792 2652Americas, +1 312 899 3569Retail, +352 4792 2434SRI, +44 203 214 2854Bonds/Credit, +33 1 71 92 10 26orArcelorMittal Corporate CommunicationsE-mail: press@arcelormittal.comTel: +352 4792 3120orGiles Read (Head of Media Relations),+44 20 3214 2845Arne Langner, +352 4792 5000Lynn Robbroeckx, +44 20 3214 2991United Kingdom, Maitland Consultancy: Martin Leeburn, +44 20 7379 5151