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Press release from Business Wire

ArcelorMittal Reports Fourth Quarter 2011 and Full Year 2011 Results

Tuesday, February 07, 2012

ArcelorMittal Reports Fourth Quarter 2011 and Full Year 2011 Results01:00 EST Tuesday, February 07, 2012 LUXEMBOURG (Business Wire) -- Regulatory News: ArcelorMittal (referred to as “ArcelorMittal” or the “Company”) (MT (New York, Amsterdam, Paris, Luxembourg), MTS (Madrid)), the world's leading steel company, today announced results1 for the three and twelve month periods ended December 31, 2011. Highlights: Health and safety performance improved in 2011 with an annual LTIF rate2 of 1.4x as compared to 1.8x in 2010; marked improvement shown in 4Q 2011 with an LTIF rate of 1.2x FY 2011 EBITDA3 of $10.1 billion (+18.7% y-o-y); 4Q 2011 EBITDA of $1.7 billion (including positive $0.1 billion from sale of CO2 credits) in challenging market conditions FY 2011 net income of $2.3 billion or $1.46 per share; 4Q 2011 net loss of $1.0 billion due in part to $1.3 billion of non-cash charges (reduction of deferred tax assets ($0.9 billion), together with asset impairments ($0.2 billion) and restructuring charges associated with asset optimization ($0.2 billion)) 4Q 2011 steel shipments of 20.6Mt down 2.5% vs. 3Q 2011 driven mainly by destocking in Europe Mining production targets achieved: FY 2011 iron ore production of 54.1Mt (+10.5% y-o-y), of which 28.0Mt shipped at market prices4 (+11.5% y-o-y); FY 2011 coal production of 8.3Mt (+ 20% y-o-y), of which 4.9Mt shipped at market prices (+45% y-o-y) Net debt5 reduced by $2.4 billion during 4Q 2011 to $22.5 billion as of December 31, driven by improved cash flow from operations of $2.9 billion, inflow of $0.8 billion from MacArthur Coal divestment and foreign exchange gains The Board proposes to maintain the annual dividend at $0.75 per share, subject to AGM approval Outlook and guidance: 1H 2012 EBITDA likely to be lower than the comparable period of 2011 and above 2H 2011 level; supported by continued progress on management gains and asset optimization plans Overall steel shipment volumes in 1H 2012 are expected to be at a similar level as in 1H 2011; Mining production volumes expected to be higher than 1H 2011 in line with plans to increase own iron ore and coal production in FY 2012 by approximately 10% 2012 Capex expected to be approximately $4-4.5 billion Further reduction in net debt anticipated with a focus on working capital management and non-core asset divestments, per the Company's stated objective to retain its investment grade credit rating Financial highlights (on the basis of IFRS1, amounts in USD):   Quarterly comparison   Semi-annual comparison   Annual comparison (USDm) unless otherwise shown 4Q 11   3Q 11   4Q 10 2H 11   1H 11   2H 10 12M 11   12M 10 Sales   $22,449   $24,214   $20,699   $46,663   $47,310   $40,443   $93,973   $78,025 EBITDA   1,714   2,408   1,853   4,122   5,995   4,015   10,117   8,525 Operating income   47   1,168   397   1,215   3,683   1,425   4,898   3,605 Net income / (loss)   (1,000)   659   (780)   (341)   2,604   570   2,262   2,916 Basic earnings / (loss) per share (USD)   (0.65)   0.43   (0.51)   (0.22)   1.68   0.38   1.46   1.93                                   Continuing operations                                 Own iron ore production (Mt)   15.1   14.1   12.6   29.2   24.9   25.6   54.1   48.9 Iron ore shipped internally and externally at market price (Mt)4     8.5   6.7   6.7   15.1   12.9   12.8   28.0   25.2 Crude steel production (Mt)   21.7   22.4   21.6   44.0   47.9   43.8   91.9   90.6 Steel shipments (Mt)   20.6   21.1   21.1   41.7   44.1   41.7   85.8   85.0 EBITDA/tonne (US$/t)   83   114   88   99   136   96   118   100 Commenting, Mr. Lakshmi N. Mittal, Chairman and CEO, ArcelorMittal, said: “The progressive recovery that we have been experiencing was impacted in the second half of the year by the growing uncertainty over the economic situation in Europe, which particularly affected sentiment and performance in the fourth quarter. Nevertheless, against this backdrop ArcelorMittal delivered an improved underlying performance compared with 2010 and met our expectation of a higher EBITDA in the second half compared with the previous year. The Company continues to benefit from its diverse geographic presence and growing mining business, which delivered on its targets to increase iron-ore and coal production by 10% and 20% respectively. I must also remark on our health and safety performance, which showed an improvement in the injury frequency rate to 1.2x in the fourth quarter. Looking ahead to 2012, the situation in Europe remains a live concern. Despite the continued uncertainty in this market, however, we are seeing an improvement in sentiment compared with the fourth quarter. Steel shipment volumes for the first six months are expected to be similar to the first half of 2011 and we are again targeting increased production from our mining business.” FOURTH QUARTER 2011 EARNINGS ANALYST CONFERENCE CALL Additionally, ArcelorMittal management will host a conference call for members of the investment community to discuss the fourth quarter 2011 financial performance at: Date   New York   London   Luxembourg Tuesday February 7, 2012   9.30am   2.30pm   3.30pm       The dial in numbers:         Location   Dial in numbers   Replay numbers   Participant UK local:   +44 (0)207 970 0006   +44 (0)20 7111 1244   696578# UK toll free   0800 169 3059       696578# USA local:   +1 215 599 1757   +1 347 366 9565   696578# USA free phone:   1800 814 6417       696578#   A replay of the conference call will be available for one week by dialing     Language   English +49 (0) 1805 2043 089   Access code   421168# 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, 2011 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 2011, ArcelorMittal had revenues of $94 billion and crude steel production of 91.9 million tonnes, representing approximately 6 percent of world steel output. ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MT), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS). For more information about ArcelorMittal visit: www.arcelormittal.com. ArcelorMittal fourth quarter 2011 results and full year 2011 results ArcelorMittal, the world's leading steel company, today announced results for the three and twelve month periods ended December 31, 2011. Corporate social responsibility and safety performanceHealth and safety - Own personnel and contractors lost time injury frequency rate2 Health and safety performance, based on own personnel figures and contractors lost time injury frequency rate, improved to 1.4x for the year 2011 from 1.8x for the year 2010 with significant improvement in Mining operations, Flat Carbon Europe, Long Carbon Americas and Europe and Asia Africa and CIS operations only partially offset by deterioration in the Flat Carbon Americas and the Distribution Solutions segments. Safety performance improved to 1.2x in the fourth quarter of 2011 as compared to 1.5x in the third quarter of 2011, with improvements in the safety performance of all our operating segments with the exception of Flat Carbon Americas. Own personnel and contractors - Frequency Rate Lost time injury frequency rate   4Q 11   3Q 11   4Q 10   12M 11   12M 10 Total Mines   0.5   1.2   1.1   1.2   1.5                       Lost time injury frequency rate   4Q 11   3Q 11   4Q 10   12M 11   12M 10 Flat Carbon Americas   1.9   1.7   2.0   1.9   1.8 Flat Carbon Europe   1.5   1.6   2.3   1.6   2.3 Long Carbon Americas and Europe   1.1   1.7   1.7   1.4   2.0 Asia Africa and CIS   0.6   0.9   0.9   0.7   0.9 Distribution Solutions   2.2   4.4   2.8   3.2   2.7 Total Steel   1.3   1.6   1.7   1.5   1.8                       Lost time injury frequency rate   4Q 11   3Q 11   4Q 10   12M 11   12M 10 Total (Steel and Mines)   1.2   1.5   1.6   1.4   1.8Key corporate social responsibility highlights for the three months ended December 31, 2011 ArcelorMittal was recently named in global human resources firm Aon Hewitt's list of top companies for leaders and ranked in the top seven companies in Europe. Winners were chosen by an expert panel of independent judges based on criteria including strength of leadership practices and culture; examples of leader development on a global scale; alignment of business and leadership strategy and business performance and company reputation. On December 2, 2011 ArcelorMittal celebrated its 4th annual International Volunteer Work Day. Within the programme, thousands of ArcelorMittal employees volunteer in different activities that are carried out to improve the lives of the people in the community. On October 13, 2011, ArcelorMittal was given the "Life Cycle Assessment Leadership" award by The Worldsteel Association, which recognizes the quality of the work performed by the life cycle analysis (LCA) team of global research and development, based in Maizieres. It also supports the way in which ArcelorMittal uses LCA to develop new steel solutions, new steel grades and new production processes and to position them on the market. Analysis of results for the twelve months ended December 31, 2011 versus results for the twelve months ended December 31, 2010 ArcelorMittal's net income for the twelve months ended December 31, 2011 was $2.3 billion, or $1.46 per share, as compared to net income for the twelve months ended December 31, 2010 of $2.9 billion, or $1.93 per share. Total steel shipments for the twelve months ended December 31, 2011 increased by 0.9% to 85.8 million metric tonnes as compared with 85.0 million metric tonnes for the twelve months ended December 31, 2010. Sales for the twelve months ended December 31, 2011 increased 20.4% to $94.0 billion as compared with $78.0 billion for the twelve months ended December 31, 2010 primarily due to higher average steel selling prices (+17.7%) and marginally higher steel shipments (+0.9%). Depreciation for the twelve months ended December 31, 2011 was higher at $4.7 billion as compared with depreciation of $4.4 billion for the twelve months ended December 31, 2010. Impairment charges for the twelve months ended December 31, 2011 were $331 million, including $151 million related to the extended idling of the Madrid electric arc furnace (Long Carbon Europe) and $141 million related to assets within the Flat Carbon Europe perimeter (including $85 million relating to Liege, Belgium) This is compared to impairment charges of $525 million for the twelve months ended December 31, 2010, including $305 million relating to the Company's coal mines in Russia (including the disposal of the Anzherskaya mine), $113 million relating to the Distribution Solutions segment and $107 million primarily relating to idle downstream assets in the European business. Restructuring charges for the twelve months ended December 31, 2011 totalled $219 million and consisted of costs associated with the implementation of the Asset Optimisation Plan primarily impacting Flat Carbon Europe and Long Carbon Europe operations, as well as various Distribution Solution entities. There were no such restructuring charges in the twelve months ended December 31, 2010. Operating income for the twelve months ended December 31, 2011 was $4.9 billion, compared with operating income of $3.6 billion for the twelve months ended December 31, 2010. Operating performance for the twelve months ended December 31, 2011 was positively impacted by $600 million of dynamic delta hedge (“DDH”) income6 recognised during the year, a net gain of $93 million recorded on the sale of carbon dioxide credits, the proceeds of which will be re-invested in energy saving projects, and by $104 million related to reversal of provisions for litigation. Operating performance for the twelve months ended December 31, 2010 was positively impacted by DDH income of $354 million and a net gain of $140 million recorded on the sale of carbon dioxide credits. Income from equity method investments and other income for the twelve months ended December 31, 2011 was $620 million, as compared to $451 million for the twelve months ended December 31, 2010. Income for the twelve months ended December 31, 2011 included an impairment charge of $107 million as a result of the Company's withdrawal from the joint venture with Peabody Energy to acquire ownership of Macarthur Coal.7 This charge reflects a higher carrying value of the investment in Macarthur, which included accrued share of net income. After considering dividends received and changes in exchange rate through October 25, 2011 (date of the divestiture announcement) the transaction was essentially cash neutral. Net interest expense (including interest expense and interest income) for the twelve months ended December 31, 2011 was higher at $1.8 billion, as compared to $1.4 billion for the twelve months ended December 31, 2010, primarily due to the higher level of borrowing and the higher cost of bond financing compared to bank loans. Mark-to-market gains on the mandatorily convertible bond issued in December 2009 were $42 million in the twelve months ended December 31, 2011. During the twelve months ended December 31, 2010, the Company had recorded a non-cash gain of $427 million as a result of mark-to-market adjustments with respect to embedded derivatives in its convertible bonds issued in the Spring of 2009. As a result of hedging transactions undertaken by the Company in December 2010, the mark-to-market impact from the convertible bonds issued in the Spring of 2009 has been minimized8. Foreign exchange and other net financing costs9 were $1.1 billion for the twelve months ended December 31, 2011, as compared to $1.2 billion for the twelve months ended December 31, 2010. ArcelorMittal recorded an income tax expense of $882 million for the twelve months ended December 31, 2011, as compared to an income tax benefit of $1.5 billion for the twelve months ended December 31, 2010. The full year 2011 income tax expense of $882 million increased primarily due to lower recognition of deferred taxes following improved results, dividend upstreaming in the fourth quarter preventing interest deductibility in Luxembourg, partial reversal of deferred taxes in our Belgian operations triggered by changes in local tax legislation, and reversal of deferred tax assets in Spain imposed by time limitations for compensation of tax losses. Losses attributable to non-controlling interests for the twelve months ended December 31, 2011 was $4 million as compared with gain attributable to non-controlling interests for the twelve months ended December 31, 2010 of $89 million. Discontinued operations (i.e. the Company's stainless steel operations, which were spun-off into a separate company, Aperam) in the twelve months ended on December 31, 2011 amounted to a gain of $461 million, including $42 million of the post-tax net results contributed by the stainless steel operations prior to their spin-off. The balance of $419 million represents a one-time non-cash gain from the recognition through the income statement of gains/losses relating to the demerged assets previously held in equity. Discontinued operations for the twelve months ended on December 31, 2010 amounted to a loss of $330 million. Analysis of results for the three months ended December 31, 2011 versus the three months ended September 30, 2011 and the three months ended December 31, 2010 ArcelorMittal recorded a net loss for the three months ended December 31, 2011 of $1.0 billion, or $0.65 loss per share, as compared with net income of $0.7 billion, or $0.43 per share, for the three months ended September 30, 2011, and a net loss of $0.8 billion,or $0.51 loss per share, for the three months ended December 31, 2010. Total steel shipments for the three months ended December 31, 2011 were 20.6 million metric tonnes as compared with 21.1 million metric tonnes for the three months ended September 30, 2011 and December 31, 2010, respectively. Sales for the three months ended December 31, 2011 decreased by 7.3% to $22.4 billion as compared with $24.2 billion for the three months ended September 30, 2011, and were up 8.5% as compared with $20.7 billion for the three months ended December 31, 2010. Sales were lower during the fourth quarter of 2011 as compared to the third quarter of 2011 primarily due to lower average steel selling prices (-6.2%) and lower steel shipment volumes (-2.5%). Depreciation amounted to $1.2 billion for the three months ended December 31, 2011, flat compared to the three months ended September 30, 2011 and slightly higher than depreciation of $1.1 billion for the three months ended December 31, 2010. Impairment charges for the three months ended December 31, 2011 totaled $228 million, including $151 million related to the extended idling of the Madrid electric arc furnace (Long Carbon Europe) and $56 million relating to assets within the Flat Carbon Europe perimeter. Impairment charges for the three months ended September 30, 2011 totaled $85 million relating to costs associated with the announced intention to close two blast furnaces, sinter plant, steel shop and continuous casters in Liege, Belgium. Impairment charges for the three months ended December 31, 2010 totaled $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 construction market weakness at that time) and $82 million primarily relating to idle downstream assets in the European business. Restructuring charges for the three months ended December 31, 2011 totalled $219 million and consisted of costs associated with the implementation of the Asset Optimisation Plan primarily impacting Flat Carbon Europe and Long Carbon Europe operations, as well as various Distribution Solution entities. There were no such restructuring charges for the three months ended September 30, 2011 or December 31, 2010. Operating income for the three months ended December 31, 2011 was $47 million, as compared with operating income of $1.2 billion for the three months ended September 30, 2011 and operating income of $0.4 billion for the three months ended December 31, 2010. The drop in operating income resulted from the weaker market environment particularly in Europe, with lower steel selling prices in general for the quarter, as well as impairment and restructuring charges. Operating performance for the three months ended December 31, 2011 was positively impacted by $163 million of dynamic delta hedge (DDH) income recognised during the quarter and by a net gain of $93 million recorded on the sale of carbon dioxide credits, the proceeds of which will be re-invested in energy saving projects. Operating performance for the three months ended September 30, 2011 was positively impacted by $129 million of DDH income. Operating performance for the three months ended December 31, 2010 was positively impacted by a net gain of $140 million recorded on the sale of carbon dioxide credits and the recognition of $88 million of DDH income. Income from equity method investments and other income for the three months ended December 31, 2011 was $177 million, as compared to $6 million for the three months ended September 30, 2011 and $74 million for the three months ended December 31, 2010. Income for the three months ended September 30, 2011 included a charge of $119 million as a result of the impairment of the Company's investment in Macarthur Coal7. The charge reflected a higher carrying value of the investment in Macarthur Coal, which included accrued share of net income. After considering dividends received and changes in exchange rate through October 25, 2011 (date of the divestiture announcement) the transaction was essentially cash neutral. Net interest expense (including interest expense and interest income) declined to $429 million for the three months ended December 31, 2011 from $477 million for the three months ended September 30, 2011. Net interest expense for the three months ended December 31, 2010 was $413 million. Mark-to-market loss on the mandatorily convertible bond issued in December 2009 during the fourth quarter of 2011 were $13 million compared to mark-to-market gain of $59 million for the third quarter of 2011. During the three months ended December 31, 2010, the Company had recorded a non-cash loss of $293 million as a result of mark-to-market adjustments relating to its convertible bonds issued in the Spring of 2009; no mark-to-market gains or losses were recorded in 2011 in respect of such bonds due to hedging transactions entered into in December 2010. Foreign exchange and other net financing gains were $26 million for the three months ended December 31, 2011 and September 30, 2011. Foreign exchange and other net financing losses for the three months ended December 31, 2010 were $494 million. ArcelorMittal recorded an income tax expense of $833 million for the three months ended December 31, 2011, as compared to an income tax expense of $154 million for the three months ended September 30, 2011, and an income tax benefit of $450 million for the three months ended December 31, 2010. The fourth quarter 2011 income tax expense of $833 million increased primarily due to lower recognition of deferred taxes following dividend upstreaming in the fourth quarter preventing interest deductibility in Luxembourg, partial reversal of deferred taxes in our Belgian operations triggered by changes in local tax legislation, and reversal of deferred tax assets in Spain imposed by time limitations for compensation of tax losses. Losses attributable to non-controlling interests for the three months ended December 31, 2011 was $25 million as compared with losses attributable to non-controlling interests of $31 million and $46 million for the three months ended September 30, 2011 and December 31, 2010, respectively. 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 QuartersSegment   Site   Project   Capacity / particulars   Actual Completion Mining   Princeton Coal (USA)   Underground mine expansion   Capacity increase by 0.7mt / year   1Q 11 Mining   Liberia mines   Greenfield Liberia   Iron ore production of 4mt / year (Phase 1)   3Q 11(a)Ongoing (b) ProjectsSegment   Site   Project   Capacity / particulars   Forecasted Completion Mining   Andrade Mines (Brazil)   Andrade expansion   Increase iron ore production to 3.5mt / year   2012 Mining   ArcelorMittal Mines Canada   Replacement of spirals for enrichment   Increase iron ore production by 0.8mt / year   2013 Mining   ArcelorMittal Mines Canada   Expansion Project   Increase concentrator capacity by 8mt/year (16 to 24mt/y)   2013 FCA   ArcelorMittal Dofasco (Canada)   Optimization of galvanizing and galvalume operations   Optimize cost and increase galvalume production by 0.1mt / year   On hold FCA   ArcelorMittal Vega Do Sul (Brazil)   Expansion Project   Increase HDG capacity by 0.6mt / year and CR capacity by 0.7mt / year   On hold LCA   Monlevade (Brazil)   Wire rod production expansion   Increase in capacity of finished products by 1.15mt / year   On hold a) Iron ore mining production commenced in 2011 with 1 million tonnes produced. The targeted iron ore production in 2012 is 4 million tonnes. As previously announced, the Company is considering a Phase 2 expansion that would lead to annual production of 15 million tonnes by 2015. This would require substantial investment in a concentrator, the approval process of which remains in the final stages. b) Ongoing 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. Analysis of segment operations As from January 1, 2011 the Company's mining operations are reported as a separate operating segment. This change in segmentation reflects the changes in ArcelorMittal's approach to managing its mining operations, i.e. a dedicated mining management team. Accordingly, as required by IFRS, prior periods have been recast to reflect this new segmentation. All raw materials consumed from ArcelorMittal mines that could practically be sold outside the Company are now reported at market prices. Production from “captive” mines (limited by logistics or quality) continues to be reported at cost-plus to the steel facilities. The principal impact of this change has been to increase the costs of raw materials consumed by the FCA and AACIS segments. Flat Carbon Americas (USDm) unless otherwise shown   4Q 11   3Q 11   4Q 10   12M 11   12M 10 Sales   $5,030   $5,499   $4,573   $21,035   $17,684 EBITDA   237   420   158   2,109   1,555 Operating Income / (Loss)   1   193   (67)   1,198   691                       Crude Steel Production ('000t)   6,009   5,866   5,636   24,215   23,101 Steel Shipments ('000t)   5,458   5,708   5,432   22,249   21,028 Average Steel Selling Price (US$/t)   868   910   769   892   781 EBITDA/tonne (US$/t)   43   74   29   95   74 Operating Income (loss) /tonne (US$/t)   0   34   (12)   54   33 Flat Carbon Americas crude steel production increased 2.4% to 6.0 million tonnes for the three months ended December 31, 2011, as compared to 5.9 million tonnes for the three months ended September 30, 2011, due in part to normalised North American production following downtime during the third quarter of 2011, offset by lower production primarily in South America operations. Steel shipments for the three months ended December 31, 2011 were 5.5 million tonnes, 4.4% lower than the three months ended September 30, 2011. Shipments declined in all operations with the exception of the US operations. Sales in the Flat Carbon Americas segment were $5.0 billion for the three months ended December 31, 2011, a decline of 8.5% as compared to $5.5 billion for the three months ended September 30, 2011. Sales decreased primarily due to lower average steel selling prices (-4.6%) and steel shipment volumes. EBITDA in the fourth quarter of 2011 declined by 43.6%, to $237 million as compared to $420 million in the third quarter of 2011, driven primarily by price cost squeeze in North America on account of lower average steel selling prices and steel shipment volumes. Flat Carbon Europe (USDm) unless otherwise shown   4Q 11   3Q 11   4Q 10   12M 11   12M 10 Sales   $7,003   $7,696   $6,817   $31,062   $25,550 EBITDA   26   367   543   1,500   2,015 Operating Income / (Loss)   (569)   (106)   142   (324)   534                       Crude Steel Production ('000t)   6,619   7,390   7,006   29,510   30,026 Steel Shipments ('000t)   6,188   6,385   6,593   27,123   27,510 Average Steel Selling Price (US$/t)   954   1,021   907   982   821 EBITDA/tonne (US$/t)   4   57   82   55   73 Operating Income (loss) /tonne (US$/t)   (92)   (17)   22   (12)   19 Flat Carbon Europe crude steel production amounted to 6.6 million tonnes for the three months ended December 31, 2011, a decrease of 10.4% as compared to 7.4 million tonnes for the three months ended September 30, 2011. Production decreased reflecting very weak market sentiment in Europe and the reduction of inventories accumulated in the third quarter. Steel shipments for the three months ended December 31, 2011 were 6.2 million tonnes, a decrease of 3.1% as compared to 6.4 million tonnes for the three months ended September 30, 2011. Steel shipments decreased during the fourth quarter of 2011 due to weaker market conditions and strong destocking activity. Sales in the Flat Carbon Europe segment were $7.0 billion for the three months ended December 31, 2011, a decrease of 9.0% as compared to $7.7 billion for the three months ended September 30, 2011. Sales decreased primarily due to lower steel shipment volumes and lower average steel selling prices (-6.6%) impacted by base prices and currency effects. EBITDA for the three months ended December 31, 2011 was $26 million, as compared to $367 million for the three months ended September 30, 2011, primarily driven by lower steel shipment volumes and significant price cost squeeze. Operating performance in the fourth quarter of 2011 was negatively impacted by impairment charges of $56 million relating to various idled facilities and restructuring costs totalling $143 million associated with the implementation of the Asset Optimisation Plan primarily relating to Spanish entities. These charges were offset however, by several positive items: a DDH income $163 million recognized during the quarter and a net gain of $93 million recorded on the sale of carbon dioxide credits, the proceeds of which will be re-invested in energy saving projects. Operating results in the third quarter of 2011 included a DDH income of $129 million and $85 million in impairment charges relating to costs associated with the announced intention to close the two blast furnaces, sinter plant, steel shop and continuous casters in Liege, Belgium. For the comparable fourth quarter of 2010, operating results were positively impacted by DDH income of $88 million and a gain of $140 million recorded on the sale of carbon dioxide credits, which were partly offset by a $37 million impairment charge primarily relating to idled downstream assets. Long Carbon Americas and Europe (USDm) unless otherwise shown   4Q 11   3Q 11   4Q 10   12M 11   12M 10 Sales   $5,936   $6,676   $5,567   $25,165   $21,315 EBITDA   338   438   315   1,866   2,075 Operating Income / (Loss)   (107)   185   28   646   1,004                       Crude Steel Production ('000t)   5,474   5,611   5,325   23,558   22,550 Steel Shipments ('000t)   5,846   5,984   5,698   23,869   23,148 Average Steel Selling Price (US$/t)   906   967   837   937   802 EBITDA/tonne (US$/t)   58   73   55   78   90 Operating Income (loss) /tonne (US$/t)   (18)   31   5   27   43 Long Carbon Americas and Europe crude steel production amounted to 5.5 million tonnes for the three months ended December 31, 2011, a decrease of 2.4% as compared to 5.6 million tonnes for the three months ended September 30, 2011. Production was lower in the Americas due to drawdown of inventory and overall weaker market demand. Steel shipments for the three months ended December 31, 2011 were 5.8 million tonnes, a decrease of 2.3% as compared to 6.0 million tonnes for the three months ended September 30, 2011, particularly due to the summer holiday period in Brazil and lower demand in North America and Europe. Sales in the Long Carbon Americas and Europe segment were $5.9 billion for the three months ended December 31, 2011, a decrease of 11.1%, as compared to $6.7 billion for the three months ended September 30, 2011. Sales decreased primarily due to lower steel shipments and lower average selling prices (-6.3%). EBITDA for the three months ended December 31, 2011 was $338 million, a 22.8% decrease as compared to $438 million for the three months ended September 30, 2011, primarily due to lower steel shipment volumes and lower average steel selling prices primarily reflecting currency effects. Operating result in the fourth quarter of 2011 was negatively impacted by impairment charges of $160 million of which $151 million related to the extended idling of the ArcelorMittal Madrid electric arc furnace. Asia Africa and CIS (“AACIS”) (USDm) unless otherwise shown   4Q 11   3Q 11   4Q 10   12M 11   12M 10 Sales   $2,733   $2,619   $2,544   $10,779   $9,706 EBITDA   238   284   215   1,238   1,135 Operating Income   93   162   92   721   681                       Crude Steel Production ('000t)   3,579   3,493   3,611   14,608   14,906 Steel Shipments ('000t)   3,065   3,005   3,392   12,516   13,266 Average Steel Selling Price (US$/t)   713   771   621   736   608 EBITDA/tonne (US$/t)   78   95   63   99   86 Operating Income / tonne (US$/t)   30   54   27   58   51 AACIS segment crude steel production was 3.6 million tonnes for the three months ended December 31, 2011, an increase of 2.5% as compared to 3.5 million tonnes for the three months ended September 30, 2011. The increase in the fourth quarter of 2011 was primarily due to improved production in Ukrainian operations. Steel shipments for the three months ended December 31, 2011 amounted to 3.1 million tonnes, an increase of 2% as compared to 3.0 million tonnes for the three months ended September 30, 2011. Sales in the AACIS segment were $2.7 billion for the three months ended December 31, 2011, an increase of 4.4% as compared to $2.6 billion for the three months ended September 30, 2011 primarily due to marginally higher steel shipments, offset by lower average steel selling prices. EBITDA for the three months ended December 31, 2011 was $238 million, 16.2% lower as compared to $284 million for the three months ended September 30, 2011. EBITDA during the fourth quarter of 2011 declined primarily due to lower average selling prices only partially offset by a slight steel shipment volume increase. Distribution Solutions10 (USDm) unless otherwise shown   4Q 11   3Q 11   4Q 10   12M 11   12M 10 Sales   $4,876   $4,899   $4,276   $19,055   $15,744 EBITDA / (loss)   (19)   48   87   271   456 Operating (Loss) / Income   (109)   8   (64)   52   166                       Steel Shipments ('000t)   4,957   4,607   4,751   18,360   18,173 Average Steel Selling Price (US$/t)   948   1,010   864   993   832 Shipments in the Distribution Solutions segment for the three months ended December 31, 2011 were 5.0 million tonnes, an increase of 7.6% as compared to 4.6 million tonnes for the three months ended September 30, 2011. Sales in the Distribution Solutions segment were $4.9 billion essentially flat for the three months ended December 30, 2011, as compared to the three months ended September 30, 2011, due primarily to higher steel shipment volumes (+7.6%) partly offset by lower average steel selling prices (-6.1%). EBITDA loss for the three months ended December 31, 2011 was $(19) million, as compared to EBITDA of $48 million for the three months ended September 30, 2011, primarily due to price cost squeeze. Operating performance in the fourth quarter of 2010 was negatively impacted by impairment charges of $113 million relating to impairment on certain subsidiaries, primarily reflecting the weak construction market at that time. Mining USDm unless otherwise shown   4Q 11   3Q 11   4Q 10   12M 11   12M 10 Sales11   $1,805   $1,678   $1,217   $6,268   $4,380 EBITDA   779   842   570   3,063   2,263 Operating income   632   725   377   2,568   1,625 Own iron ore production (a) (Mt)   15.1   14.1   12.6   54.1   48.9 Iron ore shipped externally and internally at market price (b) (Mt)   8.5   6.7   6.7   28.0   25.2 Own coal production(a) (Mt)   2.2   2.1   1.8   8.3   7.0 Coal shipped externally and internally at market price(b) (Mt)   1.3   1.2   0.8   4.9   3.4 (a) Own iron ore and coal production excluding strategic long-term contracts (b) 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 supply under strategic long-term contracts Own iron ore production (excluding supplies under strategic long-term contracts) increased 7.2% to 15.1 million tonnes for the three months ended December 31, 2011, as compared to 14.1 million tonnes for the three months ended September 30, 2011, primarily due to increased production from Liberia and Mexico. Own coal production for the three months ended December 31, 2011 increased to 2.2 million tonnes as compared to 2.1 million tonnes for the three months ended September 30, 2011. EBITDA attributable to the Mining segment for the three months ended December 31, 2011 was $779 million, 7.5% lower as compared to $842 million for the three months ended September 30, 2011, primarily due to lower average selling prices following the change to the seaborne benchmark pricing system impacting a substantial proportion of marketable volumes. The transition from 4 month lagged pricing to current quarter average, together with lower market premiums for Fe.content. For the comparable fourth quarter of 2010, operating results was negatively impacted by impairment charges of $186 million relating to Company's coal mines in Russia. Liquidity and Capital Resources For the three months ended December 31, 2011, net cash provided by operating activities was $2.9 billion, compared to net cash provided by operating activities of $0.8 billion for the three months ended September 30, 2011. Cash flow provided by operating activities for the fourth quarter of 2011 included a $1.8 billion release of operating working capital as compared to an investment in operating working capital of $1.0 billion in the third quarter of 2011. The working capital release in the fourth quarter of 2011 primarily resulted from lower inventories. Rotation days12 decreased to 67 days during the fourth quarter of 2011 from 73 days in the third quarter of 2011. Net cash used in investing activities for the three months ended December 31, 2011 was $0.5 billion, as compared to $1.3 billion for the three months ended September 30, 2011, with an increase in capital expenditure offset by investment divestiture proceeds. Capital expenditures increased to $1.5 billion for the three months ended December 31, 2011 as compared to $1.3 billion for the three months ended September 30, 2011. Capital expenditures increased to $4.8 billion for the twelve months ended December 31, 2011 as compared to $3.3 billion for the twelve months ended December 31, 2010. In light of recent market uncertainty primarily due to the European debt crisis and its potential global impact, the Company will continue to calibrate its steel growth projects to evolving demand situations; at the same time the Company is focusing on core growth capex in its mining business given their generally more attractive return profiles. This has resulted in postponement of some planned steel investments. Accordingly, full year 2012 capital expenditure is expected to be approximately $4-4.5 billion. Other investing activities in the fourth quarter of 2011 of $941 million include an inflow of $796 million from the sale of the Company's stake in MacArthur Coal and $129 million relating to the sale of the Company's 12% stake in Baosteel-NSC/Arcelor (BNA) Automotive Co. Net cash used by financing activities for the three months ended December 31, 2011 was $1.2 billion, as compared to cash provided by financing activities of $0.3 billion for the three months ended September 30, 2011. During the fourth quarter of 2011, the Company repaid loans for a net amount of $816 million primarily related to a reduction in commercial paper and bank loans. Additionally, during the fourth quarter of 2011, the Company paid dividends amounting to $289 million as compared to $309 million in the third quarter of 2011. Dividends paid during the fourth quarter of 2011 included $7 million paid to minority shareholders. During the third quarter of 2011, the Company received a $250 million cash inflow from the increase in the privately placed mandatorily convertible bond issued on December 28, 2009 by one of its wholly-owned Luxembourg subsidiaries. At December 31, 2011, the Company's cash and cash equivalents (including restricted cash and short-term investments) amounted to $3.9 billion as compared to $2.8 billion at September 30, 2011. During the quarter, net debt decreased by $2.4 billion to $22.5 billion, as compared with $24.9 billion at September 30, 2011, driven by improved cash flow from operations, inflow from the Macarthur Coal divestment, and foreign exchange gains (effect of USD appreciation on euro denominated debt). The Company will continue to seek to reduce net debt through its focus on working capital management and potential non-core asset disposals. The Company had liquidity13 of $12.5 billion at December 31, 2011, an increase of $1.2 billion as compared with liquidity of $11.3 billion at September 30, 2011, consisting of cash and cash equivalents (including restricted cash and short-term investments) of $3.9 billion and $8.6 billion of available credit lines. Dividend maintained at $0.75 per share for 2012 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 2012, on March 13, 2012, June 14, 2012, September 10, 2012 and December 10, 2012, taking into account that the first quarter dividend payment to be paid on March 13, 2012 shall be an interim dividend. Payment of the final quarterly 2011 dividend of $0.1875 per share was made on December 12, 2011. Update on management gains program and asset optimization plan At the end of the fourth quarter of 2011, the Company's annualized sustainable management gains increased to $4.0 billion as compared to $3.8 billion at September 30, 2011 (excluding Aperam). The Company maintains its target (based on the revised plan excluding Aperam) to reach management gains of $4.8 billion from sustainable SG&A, fixed cost reductions and continuous improvement by the end of 2012. Progress has been made on the Asset Optimization Plan launched in September 2011 to generate annualized $1 billion sustainable EBITDA improvement by the end of 2012: The Company announced its intention to close two blast furnaces, sinter plant, steel shop and continuous casters in Liege, Belgium; negotiations with employee representatives ongoing; Extended downtime of certain Spanish electric arc furnaces (including ArcelorMittal Madrid) and further restructuring costs at certain other Spanish and Czech Republic entities and AMDS operations. Outlook and guidance The Company's EBITDA in 1H 2012 is expected to be lower than 1H 2011 but above 2H 2011, supported by continued progress on management gains and asset optimisation plans. The Company expects steel shipments in the first half of 2012 to be at a similar level to first half of 2011. Mining production is expected to be higher than in the first half of 2011 in line with plans to increase full year 2012 own iron ore and coal production by approximately 10%. 2012 Capex budget is expected to be approximately $4-$4.5 billion including mining growth plans. A further reduction in net debt is anticipated due to a continued focus on working capital management and non-core asset divestments, per the Company's stated objective to retain its investment grade credit rating. ArcelorMittal condensed consolidated statements of financial position   December 31,   September 30,   December 31, In millions of U.S. dollars   2011   2011   201014ASSETS             Cash and cash equivalents including restricted cash   $3,905   $2,800   $6,289 Trade accounts receivable and other   6,452   8,194   5,725 Inventories   21,689   23,397   19,583 Prepaid expenses and other current assets   3,559   4,246   4,160 Assets held for distribution   -   -   6,918 Total Current Assets   35,605   38,637   42,675               Goodwill and intangible assets   14,053   14,683   14,373 Property, plant and equipment   54,251   54,052   54,344 Investments in affiliates and joint ventures and other assets   17,971   19,956   19,512 Total Assets   $121,880   $127,328   $130,904               LIABILITIES AND SHAREHOLDERS' EQUITY             Short-term debt and current portion of long-term debt   $2,784   $3,626   $6,716 Trade accounts payable and other   12,836   13,772   13,256 Accrued expenses and other current liabilities   8,204   8,527   8,714 Liabilities held for distribution   -   -   2,037 Total Current Liabilities   23,824   25,925   30,723               Long-term debt, net of current portion   23,634   24,061   19,292 Deferred tax liabilities   3,680   3,678   4,006 Other long-term liabilities   10,265   10,288   10,783 Total Liabilities   61,403   63,952   64,804               Equity attributable to the equity holders of the parent   56,690   59,586   62,430 Non–controlling interests   3,787   3,790   3,670 Total Equity   60,477   63,376   66,100Total Liabilities and Shareholders' Equity   $121,880   $127,328   $130,904 ARCELORMITTAL CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS   Three months ended   Twelve months ended December 31,   September 30,   December 31, December 31,   December 31, In millions of U.S. dollars   2011   2011   2010   2011   2010 Sales   $22,449   $24,214   $20,699   $93,973   $78,025 Depreciation   (1,220)   (1,155)   (1,075)   (4,669)   (4,395) Impairment   (228)   (85)   (381)   (331)   (525) Restructuring charges   (219)   -   -   (219)   - Operating income   47   1,168   397   4,898   3,605 Operating margin %   0.2%   4.8%   1.9%   5.2%   4.6%                       Income from equity method investments and other income   177   6   74   620   451 Net interest expense   (429)   (477)   (413)   (1,822)   (1,445) Mark to market on convertible bonds   (13)   59   (293)   42   427 Foreign exchange and other net financing gains (losses)   26   26   (494)   (1,058)   (1,182) Income (loss) before taxes and non-controlling interest   (192)   782   (729)   2,680   1,856 Current Tax   (185)   (209)   (145)   (1,018)   (821) Deferred Tax   (648)   55   595   136   2,300 Income tax benefit (expense)   (833)   (154)   450   (882)   1,479 Income / (loss) from continuing operations including non-controlling interests   (1,025)   628   (279)   1,798   3,335 Non-controlling interests (relating to continuing operations)   25   31   46   4   (89) Income / (loss) from continuing operations   (1,000)   659   (233)   1,802   3,246 Income / (loss) from discontinued operations, net of tax   0   0   (547)   461   (330) Net income / (loss) attributable to owners of the parent   $(1,000)   $659   $(780)   $2,262   $2,916                       Basic earnings / (loss) per common share   (0.65)   0.43   (0.51)   1.46   1.93 Diluted earnings / (loss) per common share   (0.65)   0.19   (0.51)   1.19   1.72                       Weighted average common shares outstanding (in millions)   1,549   1,549   1,515   1,549   1,512 Adjusted diluted weighted average common shares outstanding (in millions)   1,549   1,611   1,516   1,611   1,600                       EBITDA3   $1,714   $2,408   $1,853   $10,117   $8,525 EBITDA Margin %   7.6%   9.9%   9.0%   10.8%   10.9%                       OTHER INFORMATION                     Total iron ore production15   18.3   17.4   18.9   65.2   68.5 Crude steel production (million metric tonnes)   21.7   22.4   21.6   91.9   90.6 Total shipments of steel products16     20.6   21.1   21.1   85.8   85.0                       Employees (in thousands)   261   265   263   261   263 ARCELORMITTAL CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS In millions of U.S. dollars   Three Months Ended   Twelve Months Ended     December 31, 2011   September 30, 2011   December 31, 2010   December 31, 2011   December 31, 2010 Operating activities:                     Net income / (loss) from continuing operations   $(1,000)   $659   $(233)   $1,802   $3,246 Adjustments to reconcile net income (loss) to net cash provided by operations:                     Non-controlling interest   (25)   (31)   (46)   (4)   89 Depreciation and impairment   1,448   1,240   1,456   5,000   4,920 Restructuring charges   219   -   -   219   - Deferred income tax   648   (55)   (595)   (136)   (2,300) Change in operating working capital17   1,843   (1,013)   2,139   (3,825)   (2,531) Other operating activities (net)   (255)   (30)   602   (1,089)   346 Net cash provided by operating activities - Continued operations   2,878   770   3,323   1,967   3,770 Net cash (used in) provided by operating activities - Discontinued operations   -   -   245   (190)   245 Net cash provided by operating activities   2,878   770   3,568   1,777   4,015Investing activities:                     Purchase of property, plant and equipment and intangibles   (1,475)   (1,267)   (1,379)   (4,838)   (3,308) Other investing activities (net)   941   (31)   235   1,265   (28) Net cash used in investing activities - Continued operations   (534)   (1,298)   (1,144)   (3,573)   (3,336) Net cash used in investing activities - Discontinued operations   -   -   (34)   (105)   (102) Net cash used in investing activities   (534)   (1,298)   (1,178)   (3,678)   (3,438)Financing activities:                     Proceeds relating to payable to banks and long-term debt   (816)   407   991   537   1,992 Dividends paid   (289)   (309)   (335)   (1,194)   (1,257) Proceeds from mandatorily convertible bond   -   250   -   250   - Premium paid for call option   -   -   (1,363)   -   (1,363) Sale of treasury shares   -   -   1,363   -   1,363 Acquisition of non-controlling interest   (10)   (7)   (4)   (108)   (593) Other financing activities (net)   (37)   (47)   (28)   (17)   (101) Net cash (used in) provided by financing activities - Continued operations   (1,152)   294   624   (532)   41 Net cash (used in) financing activities - Discontinued operations   -   -   (12)   (8)   (48) Net cash (used in) provided by financing activities   (1,152)   294   612   (540)   (7) Net (decrease) increase in cash and cash equivalents   1,192   (234)   3,002   (2,441)   570 Transferred to held for sale   -   -   (123)   -   (123) Effect of exchange rate changes on cash   (85)   (178)   (58)   (68)   (159) Change in cash and cash equivalents   $1,107   $(412)   $2,821   $(2,509)   $288 Appendix 1a: Key financial and operational information - Fourth Quarter of 2011 USDm unless otherwise shown   Flat Carbon Americas   Flat Carbon Europe   Long Carbon Americas and Europe   AACIS   Distribution Solutions   MiningFINANCIAL INFORMATION                                                   Sales   $5,030   $7,003   $5,936   $2,733   $4,876   $1,805 Depreciation and impairment   (236)   (452)   (408)   (145)   (50)   (147) Restructuring charges   -   (143)   (37)   -   (40)   - Operating income (loss)   1   (569)   (107)   93   (109)   632 Operating margin (as a % of sales)   0.0%   (8.1%)   (1.8%)   3.4%   (2.2%)   35.0%                           EBITDA 3   237   26   338   238   (19)   779 EBITDA margin (as a % of sales)   4.7%   0.4%   5.7%   8.7%   (0.4%)   43.2% Capital expenditure18   228   238   359   126   58   453                           OPERATIONAL INFORMATION                         Crude steel production (Thousand MT)   6,009   6,619   5,474   3,579   -   - Steel shipments (Thousand MT)   5,458   6,188   5,846   3,065   4,957   - Average steel selling price ($/MT)19   868   954   906   713   948   -                           MINING INFORMATION (Million Mt)                         Iron ore production15   -   -   -   -   -   18.3 Coal production15   -   -   -   -   -   2.4 Iron ore shipped externally and internally at market price4   -   -   -   -   -   8.5 Iron ore shipped internally at cost-plus4   -   -   -   -   -   6.8 Coal shipment shipped externally and internally at market price4   -   -   -   -   -   1.3 Coal shipped internally at cost-plus4   -   -   -   -   -   0.8 Appendix 1b: Key financial and operational information – Twelve Months of 2011 USDm unless otherwise shown   Flat Carbon Americas   Flat Carbon Europe   Long Carbon Americas and Europe   AACIS   Distribution Solutions   MiningFINANCIAL INFORMATION                                                   Sales   $21,035   $31,062   $25,165   $10,779   $19,055   $6,268 Depreciation and impairment   (911)   (1,681)   (1,183)   (517)   (179)   (495) Restructuring charges   -   (143)   (37)   -   (40)   - Operating income   1,198   (324)   646   721   52   2,568 Operating margin (as a % of sales)   5.7%   (1.0%)   2.6%   6.7%   0.3%   41.0%                           EBITDA 3   2,109   1,500   1,866   1,238   271   3,063 EBITDA margin (as a % of sales)   10.0%   4.8%   7.4%   11.5%   1.4%   48.9% Capital expenditure18   664   1,004   1,119   613   152   1,269 OPERATIONAL INFORMATION                         Crude steel production (Thousand MT)   24,215   29,510   23,558   14,608   -   - Steel shipments (Thousand MT)   22,249   27,123   23,869   12,516   18,360   - Average steel selling price ($/MT) 19   892   982   937   736   993   - MINING INFORMATION (Million Mt)                         Iron ore production15   -   -   -   -   -   65.2 Coal production15   -   -   -   -   -   8.9 Iron ore shipped externally and internally at market price4   -   -   -   -   -   28.0 Iron ore shipped internally at cost-plus4   -   -   -   -   -   23.6 Coal shipment shipped externally and internally at market price4   -   -   -   -   -   4.9 Coal shipped internally at cost-plus4   -   -   -   -   -   3.3 Appendix 2a: Steel Shipments by geographical location20 (Amounts in thousands tonnes)   4Q 11   3Q 11   4Q 10   12M 11   12M 10 Flat Carbon America:   5,458   5,708   5,432   22,249   21,028 North America   4,206   4,271   3,877   17,084   15,283 South America   1,252   1,437   1,555   5,165   5,745                       Flat Carbon Europe:   6,188   6,385   6,593   27,123   27,510                       Long Carbon Americas and Europe:   5,846   5,984   5,698   23,869   23,148 North America   1,134   1,190   1,060   4,584   4,245 South America   1,448   1,471   1,312   5,660   5,280 Europe   2,993   3,037   3,018   12,547   12,656 Other21   271   286   308   1,078   967                       AACIS:   3,065   3,005   3,392   12,516   13,266 Africa   980   1,109   1,179   4,624   4,960 Asia, CIS & Other   2,085   1,896   2,213   7,892   8,306 Appendix 2b: Steel EBITDA3 by geographical location Amounts in USDm   4Q 11   3Q 11   4Q 10   12M 11   12M 10 Flat Carbon America:   $237   $420   $158   $2,109   $1,555 North America   166   366   101   1,615   689 South America   71   54   57   494   866                       Flat Carbon Europe:   26   367   543   1,500   2,015                       Long Carbon Americas and Europe:   338   438   315   1,866   2,075 North America   11   51   -25   131   65 South America   196   227   184   939   1,394 Europe   58   84   78   518   415 Other21     73   76   78   278   201                       AACIS:   238   284   215   1,238   1,135 Africa   9   -7   -34   232   453 Asia, CIS & Other   229   291   249   1,006   682                       Distribution Solutions:   -19   48   87   271   456 Appendix 2c: Iron ore production (million metric tonnes) Million metric tonnes (a)   Type   Product   4Q 11   3Q 11   4Q 10   12M 11   12M 10 North America (b)   Open Pit   Concentrate and Pellets   8.0   7.8   7.1   29.7   27.8 South America   Open pit   Lump and Sinter feed   1.4   1.3   1.4   5.3   4.9 Europe   Open pit   Lump and fines   0.5   0.6   0.3   1.9   1.4 Africa   Open Pit / Underground   Lump and fines   1.3   0.7   0.3   2.6   1.1 Asia, CIS & Other   Open Pit / Underground   Concentrate, lump and fines   3.9   3.7   3.4   14.6   13.8 Own iron ore production           15.1   14.1   12.6   54.1   48.9 North America(c)   Open Pit   Pellets   1.9   1.8   4.6   4.6   12.5 Africa (d)   Open Pit   Lump and Fines   1.3   1.4   1.8   6.5   7.0 Strategic contracts - iron ore           3.2   3.3   6.3   11.1   19.6Group           18.3   17.4   18.9   65.2   68.5 a) Total of all finished production of fines, concentrate, pellets and lumps. b) Includes own mines and share of production from Hibbing (USA-62.30%) and Pena (Mexico-50%). c) Includes two long term supply contracts with Cleveland Cliffs for periods prior to 2011. On April 8, 2011, arcelormittal announced that it had reached a negotiated settlement with Cliffs Natural Resources Inc. (“Cliffs”) regarding all pending contract disputes related to the procurement of iron ore pellets for certain facilities in the U.S. As part of the settlement, Cliffs and arcelormittal agreed to specific pricing levels for 2009 and 2010 pellet sales and related volumes and, beginning in 2011, to replace the previous pricing mechanism in one of the parties' iron ore supply agreements with a world market-based pricing mechanism Accordingly as from the first quarter of 2011, this excludes the long term supply contract for which settlement was reached. d) Includes long term lease - prices on a cost-plus basis and purchases made under the July 2010 interim agreement with Kumba (South Africa). Appendix 2d: Iron ore shipments (million metric tonnes) Millions metric tonnes   4Q 11   3Q 11   4Q 10   12M 11   12M 10External sales – Third party   4.4   2.1   2.4   9.0   7.0                       Internal sales – Market-priced   4.1   4.6   4.3   19.0   18.2                       Internal sales – Cost-plus basis   6.8   6.9   5.8   23.6   21.6 FCA   2.6   2.6   2.0   7.9   6.1 Long   1.1   1.4   0.9   4.4   3.8 AACIS   3.2   2.9   2.9   11.3   11.6                       Total sales   15.3   13.5   12.5   51.6   46.7                       Strategic contracts   3.2   3.3   6.3   11.1   19.6 FCA   1.9   1.8   4.6   4.6   12.5 AACIS   1.3   1.4   1.8   6.5   7.0                       Total   18.5   16.8   18.9   62.7   66.3 Appendix 2d: Coal production (Million metric tonnes) Million metric tonnes     4Q 11   3Q 11   4Q 10   12M 11   12M 10 North America     0.69   0.57   0.49   2.43   2.25 Asia, CIS & Other     1.53   1.53   1.29   5.90   4.71 Own coal production     2.22   2.10   1.78   8.32   6.96 North America(a)     0.14   0.05   0.06   0.32   0.22 Africa(b)     0.07   0.07   0.04   0.30   0.21 Strategic contracts - coal(a),(b)     0.21   0.12   0.10   0.62   0.43Group     2.43   2.22   1.88   8.94   7.39 (a) Includes strategic agreement - prices on a cost-plus basis (b) Includes long term lease - prices on a cost-plus basis Appendix 2e: Coal shipment (Million metric tonnes) Million metric tonnes   4Q 11   3Q 11   4Q 10   12M 11   12M 10 External sales - Third party   0.94   0.80   0.51   3.49   2.12 Internal sales - Market-priced   0.35   0.42   0.29   1.43   1.26 Internal sales (AACIS) - Cost-plus basis   0.82   0.83   0.86   3.31   3.17 Total sales   2.11   2.05   1.67   8.23   6.55 Strategic contracts   0.21   0.12   0.10   0.62   0.43 Total   2.31   2.17   1.77   8.85   6.98 Appendix 3: Debt repayment schedule as of December 31, 2011 Debt repayment schedule ($ billion)   2012   2013   2014   2015   2016   >2016   Total Term loan repayments                           - - Convertible bonds   -   0.1   2.1   -       -   2.2 - Bonds   -   3.4   1.3   1.7   1.8   9.2   17.4Subtotal   -   3.5   3.4   1.7   1.8   9.2   19.6LT revolving credit lines                             - $6bn syndicated credit facility   -   -   -   -   1.7   -   1.7 - $4bn syndicated credit facility   -   -   -   -   -   -   - - $0.3bn bilateral credit facility   -   -   -   -   -   -   - Commercial paper22   0.6   -   -   -   -   -   0.6 Other loans   2.2   0.5   0.3   0.3   0.7   0.5   4.5Total Gross Debt   2.8   4.0   3.7   2.0   4.2   9.7   26.4 Appendix 4: Credit lines available as of December 31, 2011 Credit lines available ($ billion)   Maturity   Equiv. $   Drawn   Available - $6bn syndicated credit facility   18/03/2016   $6.0   $1.7   $4.3 - $4bn syndicated credit facility   06/05/2015   $4.0   -   $4.0 - $0.3bn bilateral credit facility   30/06/2013   $0.3   $0.0   $0.3Total committed lines       $10.3   $1.7   $8.6 Appendix 5 - Other ratios Ratios   4Q 11   3Q 11 Gearing23   37%   39% Net debt to average EBITDA ratio based on yearly average EBITDA from Jan 1, 2004   1.6X   1.7X Net debt to EBITDA ratio based on last twelve months EBITDA   2.2X   2.4X Appendix 6: Earnings per Share   Three months ended   Twelve months ended Dec 30,   Sept 30,   Dec 30,   Dec 30,   Dec 30, In U.S. dollars   2011   2011   2010   2011   2010 Earnings per share - Discontinued operations                     Basic earnings (loss) per common share   0.00   0.00   (0.36)   0.30   (0.22) Diluted earnings (loss) per common share   0.00   0.00   (0.36)   0.29   (0.20) Earnings per share - Continued operations                     Basic earnings (loss) per common share   (0.65)   0.43   (0.15)   1.16   2.15 Diluted earnings (loss) per common share   (0.65)   0.19   (0.15)   0.90   1.92 Earnings per share                     Basic earnings (loss) per common share   (0.65)   0.43   (0.51)   1.46   1.93 Diluted earnings (loss) per common share   (0.65)   0.19   (0.51)   1.19   1.72 Appendix 7: EBITDA Bridge between 3Q 11 v 4Q 11 USD millions   EBITDA 3Q 11   Volume & Mix (a)   Price-cost (b)   Non -Steel EBITDA (c)   Other (d)   EBITDA 4Q 11 Group2,408(127)(673)18881,714 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 product/shipment mix variance indicates sales value gain/loss through selling different proportion of mix (product, choice, customer, market including domestic/export), compared to the reference period contribution. b) The 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, non-steel cost 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 utilization etc. c) Non-steel EBITDA variance primarily represents the gain/loss through the sale of by-products. d) Other represents the gain/loss through movements in provisions including write downs, write backs of inventory, onerous contracts, reversal of provisions, dynamic delta hedge on raw materials, foreign exchange etc as compared to the reference period. Appendix 8: Capex18 Capex USD millions   4Q 11   3Q 11   4Q 10   12M 11   12M 10 Flat Carbon Americas   228   173   171   664   574 Flat Carbon Europe   238   266   364   1,004   792 Long Carbon   359   280   293   1,119   687 Asia, Africa and CIS   126   184   171   613   515 Distribution Solutions   58   34   63   152   124 Mining   453   319   260   1,269   525 Note: Table excludes analysis on account of others and eliminations. Appendix 9: 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 Lost time injury frequency rate equals lost time injuries per 1,000,000 worked hours, based on own personnel and contractors. 3 EBITDA is defined as operating income plus depreciation, impairment expenses and exceptional items (i.e. $219 million restructuring charge in the fourth quarter of 2011 and full year 2011). 4 Market price 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 at the prevailing market price. Shipments of raw materials that do not constitute market price tonnes are transferred internally on a cost-plus basis. 5 Net debt refers to long-term debt, plus short term debt, less cash and cash equivalents, restricted cash and short-term investments. 6 This relates to a transaction (a "dynamic delta hedge") designed to hedge U.S. dollar-denominated raw material purchases until 2012 that ArcelorMittal entered into in mid-2008 and unwound in late 2008. The unwind resulted, among other accounting effects, in a deferred gain of approximately $2.6 billion recorded in equity which, along with the recording of hedged expenses, is being recycled in the statement of operations during the 2009-2013 period. Of this amount, $163 million was recorded as income for the three months ended December 31, 2011 and $600 million was recorded as income for the year ended December 31, 2011. 7 The Company's investment in Macarthur is accounted for under the equity method. As a result of the Company's decision to withdraw from the joint venture with Peabody Energy to acquire ownership of Macarthur Coal, the Company recognized an impairment loss of $119 million in the third quarter of 2011. The impairment for the full year 2011 was $107 million reducing since the third quarter 2011 as a result of the increase in the sale price from AUD16.00 to AUD16.25. This charge reflects a higher carrying value of the investment in Macarthur, which included accrued share of net income. After considering dividends received and changes in exchange rate through October 25, 2011 (date of the divestiture announcement) the transaction was essentially cash neutral. 8 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. 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 As from January 1, 2011 the Steel Solutions and Services segment has been renamed ArcelorMittal Distribution Solutions (AMDS). 11 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 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 transferred at market price or cost-plus is whether or not 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). 12 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. 13 Includes back-up lines for the commercial paper program of approximately $2.6 billion (€2 billion). 14 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, 2010. 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 Changes in operating working capital are defined as trade accounts receivable plus inventories less trade accounts payable. 18 Capex includes the acquisition of intangible assets (such as concessions for mining and IT support). 19 Average steel selling prices are calculated as steel sales divided by steel shipments. 20 Shipments originating from a geographical location. 21 Includes Tubular products business. 22 Commercial paper is expected to continue to be rolled over in the normal course of business. 23 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. 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 Communicationspress@arcelormittal.com+352 4792 5000orGiles Read (Head of Media Relations), +44 20 3214 2845Lynn Robbroeckx, +44 20 3214 2991Tobin Postma, +44 203 214 2412orFranceImage 7:Sylvie Dumaine, +33 1 53 70 94 17orUnited KingdomMaitland Consultancy:Martin Leeburn, +44 20 7379 5151