Kawasaki, Japan, Feb 10, 2010 - (ACN Newswire) - Fujitsu Laboratories Ltd. and the University of Toronto today announced their joint development of a new processing method for transceiver chips used in gigabit-class(1) high-speed data transmission over wirelines. The new technology employs digital circuitry to replace previously-required structures that used analog circuits. While analog processing require circuits that are adapted to the specifications of a signal being transmitted, such as transmission distance and amplitude, this new digital approach can perform these optimizations automatically, so that a single circuit could be used to accommodate a wide range of various wireline communications. Compared to conventional processing methods, this new digital-processing method makes it possible to shorten development periods by approximately half. It is anticipated that this new technology in the future could be applied to a variety of wireline communication applications, including 10 Gbps high-speed Ethernet in datacenters.
Details of this technology were presented at the IEEE International Solid-State Circuits Conference 2010 (ISSCC 2010) being held in San Francisco from February 7-11. (Presentation number: 8.7)
Background and Technological Challenges
File size data volumes for large photographic, audio, and video files are becoming increasingly larger, thus requiring a significant amount of bandwidth to transmit, leading to demand for ever-faster wireline data communications. Conventional transceiver chips rely on analog circuitry which needs to be optimized to accommodate specifications of the signal being transmitted - such as transmission distance and amplitude - and therefore require multiple transceiver chips to be designed in order to accommodate for various applications.
With a growing diversity of devices featuring high-speed data transmission, the need to optimize an existing technology for every new type of device or model has become a bottleneck in the development process. Efforts to develop transceiver chips within short development periods that can accommodate the wide range of different devices have been proven challenging.
Newly-developed Technology
Fujitsu Laboratories and the University of Toronto have developed a digital circuit-based transceiver chip. Featuring digital circuitry, the new transceiver chip can automatically optimize itself for a variety of high-speed communications circuits, thus significantly reducing development periods by approximately half compared with conventional methods.
This technology detects variations in the delay on the time axis of the input signal, caused during data transmission, and based on that can automatically adjust the timing it uses for judging whether an incoming signal is a 0 or 1 (Figure 1). Since variations in data transmissions increase along with faster transmission speeds, this new technology is essential for accurate data exchange. This is the world's first technology to achieve Gbps-class speeds without the use of analog circuitry elements, while offering fully-digital timing adjustments for signal-determination.
Results
As a world's first, by using digital circuitry-based high-speed transceiver technology, Fujitsu Laboratories and the University of Toronto's new technology makes it possible to reduce the design and development period for a gigabit-class transceiver chip by approximately one-half (1/2) compared with conventional methods. This suggests that transceiver chips for a wide range of communications devices could be offered in a timely manner.
Future Developments
Fujitsu Laboratories and the University of Toronto will continue with development of this technology to optimize the digital signal processing, to further reduce the transceiver's power consumption.
Glossary and Notes
1 Gigabit-class/Gigabits-per-second (Gbps):Gigabits-per-second (Gbps) expresses data rate and indicates how many gigabits can be transferred per second. 10 Gbps is 10 billion bits-per-second (10 billion bps) = 10,000 megabits-per-second (10,000 Mbps), and indicates that 10 billion bits of data can be transferred per second.
About University of Toronto
Established in 1827, the University of Toronto is Canada's largest university, recognized as a global leader in research and teaching. U of T's distinguished faculty, institutional record of groundbreaking scholarship and wealth of innovative academic opportunities continually attract outstanding students and academics from around the world. U of T is committed to providing a learning experience that benefits from both a scale almost unparalleled in North America and from the close-knit learning communities made possible through its college system and academic divisions. Located in and around Toronto, one of the world's most diverse regions, U of T's vibrant academic life is defined by a unique degree of cultural diversity in its learning community. The University is sustained environmentally by three green campuses, where renowned heritage buildings stand beside award-winning innovations in architectural design.
For more information: http://www.utoronto.ca/
About Fujitsu Ltd
Fujitsu is a leading provider of IT-based business solutions for the global marketplace. With approximately 160,000 employees supporting customers in 70 countries, Fujitsu combines a worldwide corps of systems and services experts with highly reliable computing and communications products and advanced microelectronics to deliver added value to customers. Headquartered in Tokyo, Fujitsu Limited (TSE: 6702) reported consolidated revenues of 4.6 trillion yen (US$47 billion) for the fiscal year ended March 31, 2009. For more information, please visit www.fujitsu.com.
Contact: Fujitsu Laboratories Ltd. Design Solutions Lab. Platform Technologies Lab. Tel: +81-44-754-2635 E-mail:hsio_adc_pr@ml.labs.fujitsu.com University of Toronto Prof. Ali Sheikholeslami Dept. of Electrical and Computer Engineering Tel: +1(416)978-1681 E-mail:ali@eecg.utoronto.ca Address: 10 King's College Road, Toronto, Ontario, M5S 3G4
Copyright 2010 ACN Newswire. All rights reserved.
Kawasaki, Japan, Feb 10, 2010 - (ACN Newswire) - Fujitsu Laboratories Limited and the University of Toronto today announced that they have jointly developed the world's first high-reliability read-method for use with spin-torque-transfer (STT) MRAM(1) that is insusceptible to erroneous writes. STT MRAM is regarded as a potential future form of non-volatile memory(2) that could be used as an alternative to flash memory. NOR flash memory that is embedded in microcontrollers widely used in mobile phones and other electronic devices is expected to reach the limits of its feasible miniaturization in the near future, which has led to the search for an alternative low-power non-volatile memory that will allow continued necessary miniaturization. By resolving one of the major obstacles to using STT MRAM, Fujitsu and the University of Toronto's new read-method marks a major step towards the practical implementation of STT MRAM as a necessary replacement for flash memory, in view of future requirements that will be necessary for compact and low-power electronic devices.
Details of this technology were presented at the IEEE International Solid-State Circuits Conference 2010 (ISSCC 2010) being held in San Francisco from February 7-11. (Presentation number: 14.1)
Background
Many electronic devices such as mobile phones or PDAs use microcontrollers with embedded flash memory, which allows onboard software to be rewritten. However, NOR flash memory used in such microcontrollers is nearing the physical limits of its miniaturization, which has led to research on various types of memory that could replace NOR flash memory.
STT MRAM, which uses magnetic materials as the memory storage element, is gaining attention as an emerging potential candidate to replace flash memory, as STT MRAM meets the needs for speed, low power consumption, and miniaturization that would make it a good candidate to replace flash memory.
Technological Challenges
STT MRAM uses memory storage elements that take advantage of the effect in which a current that is passed through a magnetic material - such as a magnetic tunnel junction (MTJ)(3) - reverses its direction of magnetization (Figure 1). Passing a current through the MTJ causes its direction of magnetization to switch between a parallel or anti-parallel state, which has the effect of switching between low resistance and high resistance. Because this can be used to represent the 1s and 0s of digital information, STT MRAM can be used as a non-volatile memory.
Reading STT MRAM involves applying a voltage to the MTJ to discover whether the MTJ offers high resistance to current ("1") or low ("0"). However, a relatively high voltage needs to be applied to the MTJ to correctly determine whether its resistance is high or low, and the current passed at this voltage leaves little difference between the read-current and the write-current. Any fluctuation in the electrical characteristics of individual MTJs could cause what was intended as a read-current, to have the effect of a write-current, thus reversing the direction of magnetization of the MTJ.
Newly-developed Technology
In a joint collaboration, Fujitsu Laboratories and the University of Toronto have developed an innovative circuit design (Figure 3) that for the first time resolves the issue of erroneous writes in STT MRAM during read operations.
The newly developed read-method uses a negative resistance(4) that is intermediate between the MTJ's high resistance and low resistance on a parallel circuit (Figure 4). If the MTJ is in a high-resistance state, this circuit exhibits negative-resistance characteristics. If the MTJ is in a low-resistance state, then it exhibits normal-resistance characteristics. These characteristics allow the resistance value to be read at lower voltages than before, suppressing the tendency of the read operation to reverse the direction of magnetization and avoiding the problem of erroneous write operations.
Results
The development of this new read circuit with negative resistance has resulted in STT MRAM that is insusceptible to erroneous writes caused by fluctuations in the electrical characteristics of the MTJs. It is anticipated that the STT MRAM used as miniaturized non-volatile memory would enable greater high-performance in mobile phones and other electronic devices.
Future Developments
Fujitsu Laboratories and the University of Toronto plan to continue with R&D related to STT MRAM to strive toward practical implementation, such as lowering write currents and developing process technologies for further miniaturization.
Glossary and Notes
1 Spin- Torque-Transfer MRAM:Spin-torque-transfer magnetoresistive (STT) random access memory. MRAM that uses the "spin-torque-transfer" effect to reverse the direction of magnetization of an element by passing current through it.
2 Non-volatile memory:Memory that persists even when electrical power is cut.
3 Magnetic tunnel junction (MJT):A tunnel junction that uses the magnetoresistive effect. Consists of a recording layer made of ferromagnetic material, an insulating film a few atoms thick, and a layer made of ferromagnetic material that will not change its direction of magnetization in the presence of a current.
4 Negative resistance:An element that has negative resistance value, in which its current decreases when voltage rises.
About University of Toronto
Established in 1827, the University of Toronto is Canada's largest university, recognized as a global leader in research and teaching. U of T's distinguished faculty, institutional record of groundbreaking scholarship and wealth of innovative academic opportunities continually attract outstanding students and academics from around the world. U of T is committed to providing a learning experience that benefits from both a scale almost unparalleled in North America and from the close-knit learning communities made possible through its college system and academic divisions. Located in and around Toronto, one of the world's most diverse regions, U of T's vibrant academic life is defined by a unique degree of cultural diversity in its learning community. The University is sustained environmentally by three green campuses, where renowned heritage buildings stand beside award-winning innovations in architectural design.
For more information: http://www.utoronto.ca/
About Fujitsu Ltd
Fujitsu is a leading provider of IT-based business solutions for the global marketplace. With approximately 160,000 employees supporting customers in 70 countries, Fujitsu combines a worldwide corps of systems and services experts with highly reliable computing and communications products and advanced microelectronics to deliver added value to customers. Headquartered in Tokyo, Fujitsu Limited (TSE: 6702) reported consolidated revenues of 4.6 trillion yen (US$47 billion) for the fiscal year ended March 31, 2009. For more information, please visit www.fujitsu.com.
Contact: Fujitsu Laboratories Ltd. Technology Integration Lab. Platform Technologies Lab. Tel: +81(46)250-8379 E-mail:til-si@ml.labs.fujitsu.com University of Toronto Prof. Ali Sheikholeslami Dept. of Electrical and Computer Engineering Tel: +1(416)978-1681 E-mail:ali@eecg.utoronto.ca Address: 10 King's College Road, Toronto, Ontario, M5S 3G4 Canada
Copyright 2010 ACN Newswire. All rights reserved.
LUXEMBOURG--(BUSINESS WIRE)-- Regulatory News:
ArcelorMittal (referred to as "ArcelorMittal", or the "Company") (MT (New York, Amsterdam, Brussels, Luxembourg, Paris) MTS (Madrid)), the world's leading steel company, today announced results1,2 for the three and twelve month periods ended December 31, 2009.
Highlights:
-- Health and Safety frequency rate3 improved by 24% during 2009
-- Shipments of 71.1 million tonnes in 2009 and of 20 million tonnes in Q4
2009, up 10% compared to Q3 2009
-- EBITDA4 of $5.8 billion in 2009 and $2.1 billion in Q4 2009, up 34%
compared to Q3 2009
-- Cash flow from operations of $7.3 billion for 2009
-- Net debt5 reduced to $18.8 billion, down $13.7 billion from the start of
the global economic crisis6
Performance and industrial plan:
-- Capacity utilisation increased to 70% in Q4 2009
-- $2.7 billion of annualized sustainable cost reductions achieved in 2009;
on track to achieve $5 billion of management gains by 2012
-- Current CAPEX plan of $4 billion for 2010, up 43% from 2009, focused on
selective growth projects in emerging markets
Guidance for the three months ended March 31, 2010:
-- EBITDA expected to be between $1.8 - $2.2 billion
Financial highlights (on the basis of IFRS, amounts in US$):
4Q 08
(USDm) unless otherwise shown 4Q 09 3Q 09 12M 09 12M 082
2
Sales $18,642 $16,170 $22,089 $65,110 $124,936
EBITDA 2,131 1,589 2,808 5,824 24,478
Operating Income / (Loss) 684 305 (3,466) (1,678) 12,236
Net Income / (Loss) 1,070 903 (2,632) 118 9,399
Iron Ore Production (Million Mt) 15.6 13.1 15.5 52.7 64.7
Crude Steel Production (Million 22.5 19.6 14.9 73.2 103.3
Mt)
Steel Shipments (Million Mt) 20.0 18.2 17.1 71.1 101.7
EBITDA/tonne (US$/t) 107 87 165 82 241
Operating Income (loss) /tonne 34 17 (203) (24) 120
(US$/t)
Basic Earnings per share (USD) 0.71 0.60 (1.93) 0.08 6.80
Commenting, Mr. Lakshmi N. Mittal, Chairman and CEO, ArcelorMittal, said:
In a very difficult environment, ArcelorMittal has succeeded in reducing its cost base substantially and significantly strengthening the balance sheet. We therefore start the year in a good position to benefit from the progressive, albeit slow, recovery that is underway. Although 2010 will continue to be challenging, we are now increasing capital expenditure to take advantage of selected growth opportunities as demand improves.
FOURTH QUARTER 2009 NEWS CONFERENCE (FOR MEDIA)
ArcelorMittal management will host a news conference:
Date New York London Luxembourg
Wednesday, 4.30am 9.30am 10.30am
February 10, 2010
The dial in numbers:
Location Dial in numbers Replay numbers
International
+44 203 023 4459 +44 20 8196 1998
number:
UK: 0203 023 4459 0208 196 1998
USA: +1 646 843 4608 +1 866 583 1035
France: 170994740 178401517
A replay of the conference call will be available for one week by dialing
Language English Spanish French
Access code 69434 181439 414790
FOURTH QUARTER 2009 EARNINGS ANALYST CONFERENCE CALL
Additionally, ArcelorMittal management will host a conference call for members of the investment community to discuss the full year and fourth quarter 2009 financial performance at:
Date New York London Luxembourg Wednesday, 9.30am 2.30pm 3.30pm February 10, 2010 The dial in numbers: Location Dial in numbers Replay numbers International number: +44 208 611 0043 +44 208 196 1998 UK: 0208 611 0043 0208 196 1998 USA: +1 866 432 7175 +1 866 583 1035 A replay of the conference call will be available for one week by dialing Language English Access code 634819#
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, 2009 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 2009, ArcelorMittal had revenues of $65.1 billion and crude steel production of 73.2 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.
ARCELORMITTAL FOURTH QUARTER 2009 AND FULL YEAR 2009 RESULTS
ArcelorMittal, the world's largest and most global steel company, today announced results for the three and twelve month periods ended December 31, 2009.
Corporate responsibility performance and initiatives
Health 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 from 2.5 for the year 2008 to 1.9 for the year 2009. Health and safety performance at the Company's mining facilities improved from 3.4 in year 2008 to 2.4 for year 2009, and at the Company's steel facilities performance improved from 2.4 in year 2008 to 1.8 for year 2009.
Lost time injury frequency rate 4Q 09 3Q 09 4Q 08 12M 09 12M 08 Total Mines 1.9 2.2 2.5 2.4 3.4 Lost time injury frequency rate 4Q 09 3Q 09 4Q 08 12M 09 12M 08 Flat Carbon Americas 2.7 1.3 1.7 2.1 2.1 Flat Carbon Europe 2.0 2.0 1.7 1.8 2.4 Long Carbon Americas and Europe 1.6 1.8 2.4 1.8 3.4 Asia Africa and CIS (AACIS) 1.3 1.5 0.8 1.1 1.2 Stainless Steel 3.3 2.8 2.5 1.8 2.2 Steel Solutions and Services 3.2 4.6 3.3 3.9 3.8 Total Steel 1.9 1.9 1.8 1.8 2.4 Lost time injury frequency rate 4Q 09 3Q 09 4Q 08 12M 09 12M 08 Total (Steel and Mines) 1.9 2.0 1.8 1.9 2.5
Key initiatives for the three months ended December 31, 2009
-- ArcelorMittal Dofasco "Community Strength" initiative was launched with
local community partners, which underscores its commitment to invest in
key community events and organizations.
-- ArcelorMittal Indiana Harbor was selected to negotiate with the US
Department of Energy (DOE) for a definitive award relating to its
proposed No. 7 blast furnace gas flare capture project. The award would
provide 50 percent cost reimbursement for the project up to $31.6
million. This project is the only one selected in Indiana, and was one
of only nine organizations across the US to be selected to receive
funds, under the American Recovery and Reinvestment Act, for projects
that promote the use of combined heat and power, district energy
systems, waste energy recovery systems, and energy efficiency.
-- ArcelorMittal's recently developed engagement database has now formally
recorded over 200 active, ongoing engagements with non-governmental
organizations and other stakeholder groups across 28 countries. The
database will improve the effectiveness of engagements, ensure
consistent and appropriate responses, and allow for the early
identification of issues.
Analysis of results for the twelve months ended December 31, 2009 versus results for the twelve months ended December 31, 2008
ArcelorMittal's net income for the twelve months ended December 31, 2009 was $0.1 billion, or $0.08 per share, as compared to net income for the twelve months ended December 31, 2008 of $9.4 billion2, or $6.80 per share.
Sales and operating loss7 for the twelve months ended December 31, 2009 were $65.1 billion and $1.7 billion, respectively, as compared with sales and operating income for the twelve months ended December 31, 2008, of $124.9 billion and $12.22 billion, respectively. Sales were lower due to lower average steel selling prices (-27%) and lower steel shipment volumes (-30%) due to a sharp drop in global steel demand following the global economic crisis.
Total steel shipments for the twelve months ended December 31, 2009 decreased to 71.1 million metric tonnes as compared with total steel shipments of 101.7 million metric tonnes for the twelve months ended December 31, 2008.
Depreciation costs for the twelve months ended December 31, 2009 decreased to $4.9 billion as compared with depreciation costs for the twelve months ended December 31, 2008 of $5.0 billion.
Impairment losses for the twelve months ended December 31, 2009 amounted to $564 million8. Impairment losses for the twelve months ended December 31, 2008 had amounted to $1.1 billion, including impairments of $499 million and goodwill of $560 million.
Operating performance for the twelve months ended December 31, 2009 was 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 previously booked in 2008, and a net gain of $108 million recorded on the sale of carbon dioxide credits that ArcelorMittal purchased since 20079. The operating performance for the twelve months ended December 31, 2008 had been negatively impacted by exceptional charges amounting to $6.1 billion consisting of a non-recurring expense of approximately $1.7 billion primarily related to vested post-employment benefits in connection with the entry by ArcelorMittal USA into a new labor contract with its union employees, and exceptional charges amounting to $4.4 billion related to write-downs of inventory and raw material supply contracts, and provisions for workforce reduction and litigation.
Income from equity method investments and other income for the twelve months ended December 31, 2009 was $58 million, as compared to $1.7 billion for the twelve months ended December 31, 2008. The decrease was due to lower income from the Company's investments due to the global economic crisis, as well as the gain recorded in 2008 from the sale of a stake in an investee company.
Net interest expense (including interest expense and interest income), remained flat at $1.5 billion for the twelve months ended December 31, 2009 as compared to the twelve months ended December 31, 2008. Interest cost increased during the year due to higher rates on capital markets refinancing, which was offset by lower overall net debt. During the twelve months ended December 31, 2009, the Company also recorded a loss of $0.9 billion as a result of mark-to-market adjustments on the conversion options embedded in its convertible bonds issued in the second quarter of 200910. Foreign exchange and other net financing costs11 were $385 million for the twelve months ended December 31, 2009, as compared to foreign exchange and other financing costs of $628 million for the twelve months ended December 31, 2008. Losses related to the fair value of derivative instruments for the twelve months ended December 31, 2009 amounted to $28 million, as compared with $177 million for the twelve months ended December 31, 2008.
Income tax benefit for the twelve months ended December 31, 2009 amounted to $4.5 billion, as compared with income tax expense for the twelve months ended December 31, 2008 of $1.1 billion. The income tax benefit for the year is primarily due to ArcelorMittal's 2009 loss as compared with 2008 profit, and its geographical mix.
Results attributable to non-controlling (minority) interest for the twelve months ended December 31, 2009 decreased to a loss of $43 million as compared with non-controlling (minority) interest for the twelve months ended December 31, 2008 of $1.0 billion. The decrease relates to lower income in subsidiaries with non-controlling (minority) interest due to the global economic crisis.
Analysis of results for three months ended December 31, 2009 versus three months ended September 30, 2009 and three months ended December 31, 2008
ArcelorMittal recorded net income for the three months ended December 31, 2009 of $1.1 billion, or $0.71 per share, as compared with a net income of $0.9 billion, or $0.60 per share, for the three months ended September 30, 2009, and net loss of $2.6 billion2 or $(1.93) per share, for the three months ended December 31, 2008.
Sales for the three months ended December 31, 2009 were $18.6 billion, higher as compared with $16.2 billion for the three months ended September 30, 2009 and down from $22.1 billion for the three months ended December 31, 2008. Sales were higher during the fourth quarter of 2009 as compared to the third quarter of 2009, primarily due to higher volumes (+10%) and average steel selling prices (+6%). Despite the improvement in demand during the fourth quarter of 2009, sales remain substantially lower year-on-year due to the global economic crisis.
Operating income increased to $0.7 billion for the three months ended December 31, 2009, as compared with $0.3 billion for the three months ended September 30, 2009 and an operating loss for the three months ended December 31, 2008 of $3.5 billion2.
Total steel shipments for the three months ended December 31, 2009 were 20.0 million metric tonnes as compared with steel shipments of 18.2 million metric tonnes for the three months ended September 30, 2009 and 17.1 million metric tonnes for the three months ended December 31, 2008. This increase results from improved demand across all segments in the fourth quarter of 2009 as compared with the third quarter of 2009.
Depreciation expenses for the three months ended December 31, 2009 were $1.3 billion as compared with depreciation expenses of $1.2 billion for the three months ended September 30, 2009 and December 31, 2008, respectively. The increase in the fourth quarter of 2009 as compared to the third quarter of 2009 is primarily on account of exchange rate impact.
Impairment costs for the three months ended December 31, 2009 amounted to $502 million8 as compared to impairment losses of $62 million8 for the three months ended September 30, 2009. Impairment losses for the three months ended December 31, 2008 amounted to $588 million including asset impairments of $325 million and reduction of goodwill of $264 million.
The operating performance for the three months ended December 31, 2009 was positively impacted by an exceptional gain of $380 million relating to a reversal of litigation provisions previously booked in the fourth quarter of 2008, and a net gain of $108 million recorded on the sale of carbon dioxide credits that ArcelorMittal purchased since 2007. These carbon dioxide proceeds will be re-invested in energy saving projects. Operating performance for the three months ended December 31, 2008 had been negatively impacted by exceptional charges amounting to $4.4 billion related to write-downs of inventory and raw material supply contracts, and provisions for workforce reduction and litigation.
Income from equity method investments and other income for the three months ended December 31, 2009 resulted in a gain of $101 million, as compared to gains of $99 million and $386 million for the three months ended September 30, 2009 and December 31, 2008, respectively.
Net interest expense (including interest expense and interest income) increased to $415 million for the three months ended December 31, 2009 as compared to $387 million for the three months ended September 30, 2009 primarily due to higher interest rates on refinancing bond issuances in 2009 and exchange rate effects. Net interest expense for the three months ended December 31, 2008 had amounted to $468 million. During the three months ended December 31, 2009, the Company also recorded a loss of $430 million (versus a $110 million loss in the third quarter of 2009) as a result of mark-to-market adjustments on the conversion options embedded in its convertible bonds issued in the first half of the year. Foreign exchange and other net financing costs for the three months ended December 31, 2009 amounted to $84 million, as compared to gains of $106 million and $64 million for the three months ended September 30, 2009 and December 31, 2008, respectively. Gains related to the fair value of derivative instruments for the three months ended December 31, 2009 amounted to $2 million, as compared with gains of $6 million for the three months ended September 30, 2009, and losses of $240 million for the three months ended December 31, 2008, respectively.
ArcelorMittal recorded an income tax benefit of $1.3 billion for the three months ended December 31, 2009, as compared to an income tax benefit of $0.9 billion for the three months ended September 30, 2009. The income tax benefit for the three months ended December 31, 2008 was $1.1 billion.
Results attributable to non-controlling (minority) interest for the three months ended December 31, 2009 were $74 million as compared with profits attributable to non-controlling (minority) interest of $15 million for the three months ended September 30, 2009. Profits attributable to non-controlling (minority) interest for the three months ended December 31, 2008 were $34 million.
Capital expenditure projects
The following tables summarise the Company's principal growth and optimisation projects involving significant capital expenditure completed in 2009 and those that are currently ongoing.
Completed projects
Segment Site Project Capacity / Actual Completion
particulars
ArcelorMittal Hot strip mill Hot strip mill
FCA Tubarao (Brazil) expansion capacity 4Q 09
project increase
from 2.7mt to
4mt / year
Production
FCA Volcan (Mexico) Mine development increase of 4Q 09
1.6mt
of iron ore in
2010
Ongoing(a) Projects
Segment Site Project Capacity / Forecast
particulars
Completion
ArcelorMittal Vega do Sul Increase in HDG
FCA Tubarao (Brazil) expansion plan production of 1H 10
350kt / year
ArcelorMittal Primary Increase of slab
FCA Dofasco (Canada) steelmaking capacity by 630kt 1H 10
optimisation / year
Modernisation of Slab capacity
FCE ArcelorMittal continuous caster increase from 2H 10
Dunkerque (France) 21 6.7mt to 7.5mt /
year
FCA Princeton Coal Princeton Coal Capacity increase 2010
(USA) of 0.7mt
Iron ore
AACIS Liberia mines Greenfield Liberia production of 15mt 2011(b)
/ year
Increase in
LCA Monlevade (Brazil) Monlevade capacity of 2012
expansion plan finished products
by 1.150kt
ArcelorMittal Replacement of Increase iron ore
FCA Mines Canada spirals for production by 2013
enrichment 0.8mt / year
a) Ongoing projects refer to projects in 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 production of 1 million tonnes.
Projects through Joint Ventures
Country Site Project Capacity Forecast
completion
Saudi Arabia Al-Jubail 600kt seamless Capacity of 600kt 2012
tube mill of seamless tube
Capacity of 1.2mt
China Hunan Province VAMA Auto Steel JV for the auto 2012
market
VAME Electrical Capacity of 0.3mt
China Hunan Province Steel JV of electrical 2012
steel
Analysis of segment operations for the three months ended December 31, 2009 as compared to the three months ended September 30, 2009
Flat Carbon Americas
(USDm) unless otherwise shown 4Q 09 3Q 09 4Q 082 12M 09 12M 082
Sales $4,069 $3,287 $4,542 $13,340 $27,031
EBITDA 524 332 433 1,119 5,834
Operating Income / (Loss) 180 83 (433) (757) 2,524
Crude Steel Production ('000t) 5,402 4,323 3,472 16,556 26,476
Steel Shipments ('000t) 4,834 4,162 3,931 16,121 25,810
Average Selling Price (US$/t) 719 653 1,007 698 920
EBITDA/tonne (US$/t) 108 80 110 69 226
Operating Income (loss) /tonne 37 20 (110) (47) 98
(US$/t)
Flat Carbon Americas crude steel production reached 5.4 million tonnes for the three months ended December 31, 2009, an increase of 25% as compared to 4.3 million tonnes for the three months ended September 30, 2009. Following the improvement in demand the Company has restarted certain steel production facilities.
Sales in the Flat Carbon Americas segment were $4.1 billion for the three months ended December 31, 2009, an increase of 24% as compared to $3.3 billion for the three months ended September 30, 2009. Sales improved primarily due to higher steel shipments (+16%) and average steel selling prices (+10%). As a result EBITDA improved by $28/tonne (+36%) to $108/tonne.
Flat Carbon Europe
(USDm) unless otherwise shown 4Q 09 3Q 09 4Q 08 12M 09 12M 08
Sales $5,934 $4,866 $7,029 $19,981 $38,300
EBITDA 657 271 956 1,907 6,448
Operating Income / (Loss) 230 (168) (1,357) (540) 2,773
Crude Steel Production ('000t) 7,410 6,718 5,147 22,752 34,338
Steel Shipments ('000t) 6,408 5,601 6,020 21,797 33,512
Average Selling Price (US$/t) 807 759 956 799 1,018
EBITDA/tonne (US$/t) 103 48 159 87 192
Operating Income (loss) /tonne 36 (30) (225) (25) 83
(US$/t)
Flat Carbon Europe crude steel production reached 7.4 million tonnes for the three months ended December 31, 2009, an increase of 10% as compared to 6.7 million tonnes for the three months ended September 30, 2009. Following the improvement in demand the Company has restarted certain steel production facilities.
Sales in the Flat Carbon Europe segment were $5.9 billion for the three months ended December 31, 2009, an increase of 22% as compared to $4.9 billion for the three months ended September 30, 2009. Sales improved primarily due to higher steel shipments (+14%) and average steel selling prices (+6%). As a result EBITDA improved by $55/tonne (+112%) to $103/tonne.
EBITDA and operating results in the fourth quarter of 2009 included a net gain of $108 million recorded on the sale of carbon dioxide credits that ArcelorMittal purchased since 2007, and a $90 million non cash-gain relating to hedges on raw material purchases. Operating results in the third quarter of 2009 had been negatively impacted by a $62 million charge relating to impairment on coke oven assets at ArcelorMittal Galati, party offset by a $50 million non cash-gain relating to a hedge on raw material purchases.
Long Carbon Americas and Europe
(USDm) unless otherwise shown 4Q 09 3Q 09 4Q 08 12M 09 12M 08
Sales $4,578 $4,328 $5,180 $16,767 $32,268
EBITDA 482 589 869 1,666 6,678
Operating Income / (Loss) (79) 292 (394) (29) 4,154
Crude Steel Production ('000t) 5,356 4,741 3,740 18,901 25,198
Steel Shipments ('000t) 5,228 5,025 4,551 19,937 27,115
Average Selling Price (US$/t) 755 740 997 743 1,055
EBITDA/tonne (US$/t) 92 117 191 84 246
Operating Income (loss) /tonne (15) 58 (87) (1) 153
(US$/t)
Long Carbon Americas and Europe crude steel production reached 5.4 million tonnes for the three months ended December 31, 2009, an increase of 13% as compared to 4.7 million tonnes for the three months ended September 30, 2009. Following the improvement in demand, the Company has restarted certain steel production facilities.
Sales in the Long Carbon Americas and Europe segment were $4.6 billion for the three months ended December 31, 2009, an increase of 6% as compared to $4.3 billion for the three months ended September 30, 2009. Sales improved primarily due to higher steel shipments (+4%) and a marginal improvement in average steel selling prices (+2%).
Operating performance declined during the fourth quarter 2009 as revenue improvement was more than offset by an increase in costs, particularly scrap prices. During the quarter, the Company also recorded impairment costs of $281 million on its tubular business and certain idled assets (including $65 million in Roman, Romania and $65 million in Las Truchas, Mexico). During the fourth quarter of 2009, EBITDA declined by $25/tonne (-21%) to $92/tonne as compared to the third quarter of 2009.
Asia Africa and CIS ("AACIS")
(USDm) unless otherwise shown 4Q 09 3Q 09 4Q 08 12M 09 12M 08
Sales $2,274 $1,987 $2,063 $7,627 $13,133
EBITDA 310 235 280 1,002 3,985
Operating Income / (Loss) 167 96 (159) 265 3,145
Crude Steel Production ('000t) 3,899 3,382 2,124 13,411 15,118
Steel Shipments ('000t) 3,075 3,043 2,190 11,769 13,296
Average Selling Price (US$/t) 550 514 638 506 804
EBITDA/tonne (US$/t) 101 77 128 85 300
Operating Income (loss) /tonne (US$/t) 54 32 (73) 23 237
AACIS segment crude steel production reached 3.9 million tonnes for the three months ended December 31, 2009, an increase of 15% as compared to 3.4 million tonnes for the three months ended September 30, 2009. Following the improvement in demand, the Company has restarted certain steel production facilities.
Sales in the AACIS segment were $2.3 billion for the three months ended December 31, 2009, an increase of 14% as compared to $2.0 billion for the for the three months ended September 30, 2009. Sales improved primarily due to higher average steel selling prices (+7%), while shipments remained flat.
Operating performance improved during the fourth quarter of 2009 as compared to the third quarter of 2009 with EBITDA improving by $24/tonne (+31%) to $101/tonne.
Stainless Steel
(USDm) unless otherwise shown 4Q 09 3Q 09 4Q 08 12M 09 12M 08
Sales $1,253 $1,061 $1,319 $4,234 $8,341
EBITDA 113 133 36 258 934
Operating Income / (Loss) 10 51 (247) (172) 383
Crude Steel Production ('000t) 452 460 376 1,616 2,197
Steel Shipments ('000t) 415 354 365 1,447 1,958
Average Selling Price (US$/t) 2,820 2,882 3,260 2,763 3,976
EBITDA/tonne (US$/t) 272 376 99 178 477
Operating Income (loss) /tonne (US$/t) 24 144 (677) (119) 196
Stainless Steel segment crude steel production reached 452 thousand tonnes for the three months ended December 31, 2009, a decrease of 2% from 460 thousand tonnes for the three months ended September 30, 2009.
Sales in the Stainless Steel segment were $1.3 billion for the three months ended December 31, 2009, an increase of 18% as compared to $1.1 billion for the three months ended September 30, 2009. Sales improved primarily due to higher steel shipments (+17%) partially offset by lower average steel selling prices (-2%).
Operating performance declined during the fourth quarter of 2009, as compared to the third quarter of 2009 due to higher input costs, as EBITDA declined by $104/tonne (-28%) to $272/tonne.
Steel Solutions and Services
(USDm) unless otherwise shown 4Q 09 3Q 09 4Q 08 12M 09 12M 082
Sales $3,489 $3,246 $4,306 $13,524 $23,126
EBITDA 39 (1) 187 (97) 1,123
Operating Income / (Loss) 230 (60) (580) (286) 205
Steel Shipments ('000t)17 4,167 4,207 3,684 16,794 19,143
Average Selling Price (US$/t) 794 736 1,106 767 1,155
Sales in the Steel Solutions and Services segment were $3.5 billion for the three months ended December 31, 2009, an increase of 7% as compared to $3.2 billion for the three months ended September 30, 2009. Sales improved primarily due to higher average steel selling prices (+8%) offset by marginally lower shipments (-1%).
Operating performance in the fourth quarter 2009 was positively impacted by an exceptional gain of $380 million relating to reversal of litigation provisions previously booked in the fourth quarter of 2008.This gain was offset in part by impairment costs of $128 million recorded primarily in ArcelorMittal Construction ($117 million).
Liquidity and Capital Resources
For the three months ended December 31, 2009, net cash provided by operating activities was $2.8 billion, compared to $2.4 billion for the three months ended September 30, 2009. The cash inflow from operating activities for the fourth quarter of 2009 included $1.4 billion generated by operating working capital changes as rotation days12 decreased from 83 days in the third quarter of 2009 to 63 days in fourth quarter of 2009. The Company expects rotation days to significantly increase in the first quarter of 2010 as activity levels are expected to improve. Cash provided by other operating activities for the three months ended December 31, 2009 amounted to $408 million due primarily to the non-cash charge of the $430 million convertible bond and increase in the Company's true sales of receivables ("TSR") programs, partly offset by a non-cash gain of $90 million relating to hedges on raw material purchases and various cash payments (e.g. VAT, voluntary separation scheme (VSS) and interest payments).
Net cash used in investing activities for the three months ended December 31, 2009 was $0.9 billion, compared to $0.7 billion for the three months ended September 30, 2009. Capital expenditures increased to $0.8 billion for the three months ended December 31, 2009 as compared to $0.6 billion for the three months ended September 30, 2009. The Company expects capital expenditure of approximately $4.0 billion in 2010. Capital expenditures for full year 2009 decreased to $2.8 billion as compared to $5.5 billion for full year 2008.
During the fourth quarter of 2009, the Company paid dividends amounting to $335 million, which included $283 million paid to ArcelorMittal shareholders and $52 million to non-controlling (minority) shareholders in subsidiaries. ArcelorMittal also pre-paid maturing debt amounting to $2.2 billion.
On October 1, 2009, ArcelorMittal priced an issuance of $1 billion principal amount of 7% bonds (yielding 7.4%) due 2039. On December 28, 2009, a wholly-owned Luxembourg subsidiary of ArcelorMittal issued and privately-placed a $750 million mandatory convertible bond due May 201113.
At December 31, 2009, the Company's cash and cash equivalents (including restricted cash and short-term investments) amounted to $6.0 billion as compared to $5.9 billion at September 30, 2009. Net debt5 at December 31, 2009 was $18.8 billion (as compared with $21.6 billion at September 30, 2009). The reduction in net debt primarily resulted from cash generated from operations. Operating working capital (defined as inventory plus receivables less payables) at December 31, 2009 was $11.9 billion as compared to $13.7 billion at September 30, 2009, due mainly to lower trade accounts receivables and higher trade accounts payables. The Company expects net debt to increase in the first quarter of 2010 primarily due an increase in working capital due to rising activity levels.
The Company had liquidity of $17.2 billion at December 31, 2009, compared with liquidity of $18.4 billion at September 30, 2009, consisting of cash and cash equivalents (including restricted cash and short-term investments) of $6.0 billion and $11.2 billion of available credit lines. As of December 31, 2009, the Company's leverage ratio (net debt to last twelve months EBITDA), which is the ratio used in the Company's principal financing facilities, stood at 3.2X versus 3.3X at September 30, 2009.
Dividend maintained at $0.75 per share for 2010
The Board of Directors has recommended to maintain the Company's base dividend at $0.75 for full-year 2010.
As a consequence, 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. The dividend payments would occur on a quarterly basis for the full year 2010, on March 15, 2010, June 14, 2010, September 13, 2010 and December 15, 2010, taking into account that the first quarter dividend payment to be paid on March 15, 2010 shall be an interim dividend.
Final payment of dividend for 2009 of $0.1875 per share was made on December 14, 2009.
Update on management gains, fixed cost reduction program and capacity utilisation
The Company has met its target to achieve management gains of $2 billion of sustainable SG&A and fixed cost reductions in 2009 ahead of schedule. As of the end of the fourth quarter of 2009, the Company had achieved annualized sustainable savings of $2.7 billion. The Company has also achieved $5.0 billion ($4.3 billion at a constant dollar14) of annualized temporary fixed cost savings in Q4 2009 resulting from industrial optimization in response to lower demand.
Capacity utilisation increased to approximately 70% in the fourth quarter of 2009, as compared to approximately 61% in the third quarter of 2009, and is expected to increase gradually to approximately 75% in the first quarter of 2010.
Recent Developments
-- On January 19, 2010, ArcelorMittal announced it had entered into initial
discussions with BHP Billiton to potentially combine their respective
iron ore mining and infrastructure interests in Liberia and Guinea
within a joint venture. The iron ore interests of the two companies in
Liberia and in Guinea are proximate and the parties believe they could
be significantly more competitive if brought together in a combined
operation. The parties will be working together over the coming months
to assess the merits of a partnership and will also work closely with
the governments involved.
-- Following the closing of a tender offer on January 7, 2010, the Company
acquired a 28.8% stake in Uttam Galva Steels Limited ("Uttam Galva"), a
leading producer of cold rolled steel, galvanized products (including
plain and corrugated) and color coated coils and sheets based in Western
India that is listed on the major stock exchanges of India. The Company
expects to purchase an additional 4.9% from the Promoter R.K. Miglani
family in due course.
-- On December 29, 2009, ArcelorMittal announced the issuance on December
28, 2009 via a wholly-owned Luxembourg subsidiary of a $750 million bond
mandatorily convertible into preferred shares of such subsidiary. The
bond was placed privately with a Luxembourg affiliate of Calyon and will
not be listed. The bond will have a maturity of 17 months and
ArcelorMittal will be entitled to call it in the year prior to maturity.
The subsidiary invested the proceeds of the bond issuance and an equity
contribution by ArcelorMittal in notes linked to shares of the listed
companies Eregli Demir Ve Celik Fab. T. AS of Turkey and Macarthur Coal
Limited of Australia, both of which are held by ArcelorMittal
subsidiaries. The subsidiary may also, in agreement with Calyon, invest
in other financial instruments.
-- On December 22, 2009, ArcelorMittal announced the appointment of Mr.
Peter Kukielski to its Group Management Board (GMB), with responsibility
for the Group's global mining operations, effective January 1, 2010.
-- On December 9, 2009, ArcelorMittal announced that Mr. Georges Schmit
will step down from his position as a member of the Board of Directors
on December 31, 2009, due to his appointment as Consul General of
Luxembourg based in San Francisco. In replacement of Mr. Georges Schmit,
the Board of Directors has appointed Mr. Jeannot Krecke as an interim
board member starting January 1, 2010. Mr Jeannot Krecke's appointment
to the Board of Directors for a full term will be proposed to
shareholders at the Company's Annual General Meeting scheduled May 11,
2010.
-- On November 12, 2009, ArcelorMittal announced that it had entered into
an agreement to acquire a 13.9% stake in ArcelorMittal Ostrava from a
subsidiary of PPF Group N.V., for approximately $371 million. Following
completion of the transaction in January 2010, ArcelorMittal holds a
96.4% stake in ArcelorMittal Ostrava.
-- On October 9, 2009, ArcelorMittal entered into an agreement to divest
its non-controlling (minority) interest in Wabush Mines in Canada,
pursuant to which it will receive $34.28 million for its 28.6% stake.
The transaction was completed in February 2010. The mine produced 0.8
million tons of iron ore for ArcelorMittal in 2009. The Company will
continue to maintain significant mining operations and resources in
Canada, including ArcelorMittal Mines Canada (formerly Quebec Cartier
Mining).
For further information about each of these recent developments, please refer to our website www.arcelormittal.com
First quarter of 2010 outlook
The first quarter of 2010 EBITDA is expected to be approximately $1.8 - $2.2 billion. Shipments are expected to be higher during the first quarter of 2010 as compared to the fourth quarter of 2009, but this increase is expected to be offset by slightly lower average selling prices and increased costs. The Company also expects net debt to increase in the first quarter of 2010.
ARCELORMITTAL CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
December 31, September 30, December 31,
In millions of U.S. dollars 2009 2009 20082, 15
ASSETS
Cash and cash equivalents and $6,009 $5,884 $7,587
restricted cash
Trade accounts receivable and other 5,750 6,623 6,737
Inventories 16,835 16,900 24,741
Prepaid expenses and other current 4,213 4,923 5,349
assets
Total Current Assets 32,807 34,330 44,414
Goodwill and intangible assets 17,034 17,005 16,119
Property, plant and equipment 60,385 61,414 60,755
Investments in affiliates and joint 17,471 16,588 11,800
ventures and other assets
Total Assets $127,697 $129,337 $133,088
LIABILITIES AND SHAREHOLDERS' EQUITY
Payable to banks and current portion $4,135 $5,676 $8,409
of long-term debt
Trade accounts payable and other 10,676 9,777 10,501
Accrued expenses and other current 8,719 9,343 11,850
liabilities
Total Current Liabilities 23,530 24,796 30,760
Long-term debt, net of current 20,677 21,787 25,667
portion
Deferred tax liabilities 5,144 5,918 6,395
Other long-term liabilities 12,948 12,928 11,036
Total Liabilities 62,299 65,429 73,858
Equity attributable to the equity 61,045 60,291 55,198
holders of the parent
Non-controlling interest 4,353 3,617 4,032
Total Equity 65,398 63,908 59,230
Total Liabilities and Shareholders' $127,697 $129,337 $133,088
Equity
ARCELORMITTAL CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Twelve Months Ended
December September December 31, December 31, December 31,
31, 30,
In millions of 2009 2009 20082 2009 20082
U.S. dollars
Sales $18,642 $16,170 $22,089 $65,110 $124,936
Depreciation (1,325) (1,222) (1,243) (4,893) (5,043)
Impairment (502) (62) (588) (564) (1,057)
Exceptional 380 0 (4,443) (2,045) (6,142)
items7
Operating 684 305 (3,466) (1,678) 12,236
income / (loss)
Operating 3.7% 1.9% (15.7%) (2.6%) 9.8%
margin %
Income from
equity method 101 99 386 58 1,653
investments and
other income
Net interest (415) (387) (468) (1,507) (1,547)
expense
Mark to market
on convertible (430) (110) 0 (897) 0
bonds
Foreign
exchange and
other net (84) 106 64 (385) (628)
financing gains
(losses)
Revaluation of
derivative 2 6 (240) (28) (177)
instruments
Income (loss)
before taxes
and (142) 19 (3,724) (4,437) 11,537
non-controlling
interest
Income tax
benefit 1,286 899 1,126 4,512 (1,098)
(expense)
Income (loss)
including 1,144 918 (2,598) 75 10,439
non-controlling
interest
Non-controlling (74) (15) (34) 43 (1,040)
interest
Net income
(loss)
attributable to $1,070 $903 $(2,632) $118 $9,399
owners of the
parent
Basic earnings
(loss) per 0.71 0.60 (1.93) 0.08 6.80
common share
Diluted
earnings (loss) 0.68 0.60 (1.93) 0.08 6.78
per common
share
Weighted
average common
shares 1,509 1,508 1,365 1,445 1,383
outstanding (in
millions)
Adjusted
diluted
weighted
average common 1,537 1,597 1,365 1,446 1,386
shares
outstanding (in
millions)
EBITDA4 $2,131 $1,589 $2,808 $5,824 $24,478
EBITDA Margin % 11.4% 9.8% 12.7% 8.9% 19.6%
OTHER
INFORMATION
Total iron ore 15.6 13.1 15.5 52.7 64.7
production16
Crude steel
production 22.5 19.6 14.9 73.2 103.3
(million metric
tonnes)
Total shipments
of steel 20.0 18.2 17.1 71.1 101.7
products17
Employees (in 282 287 316 282 316
thousands)
ARCELORMITTAL CONSOLIDATED STATEMENTS OF CASH FLOWS
In millions of Three Months Ended Twelve Months Ended
U.S. dollars
December September December 31, December 31, December 31,
31, 30,
2009 2009 2008(2) 2009 2008(2)
Operating
activities:
Net income $1,070 $903 $(2,632) $118 $9,399
(loss)
Adjustments to
reconcile net
income (loss)
to net cash
provided by
operations:
Non-controlling 74 15 34 (43) 1,040
interest
Depreciation 1,827 1,284 1,831 5,457 6,100
and impairment
Exceptional (380) - 4,443 2,045 6,142
items7
Deferred income (1,562) (1,006) (912) (4,866) (1,396)
tax
Change in
operating 1,378 1,333 1,642 6,575 (8,070)
working
capital18
Other operating
activities 408 (141) 1,471 (2,008) 1,437
(net)
Net cash
provided by 2,815 2,388 5,877 7,278 14,652
operating
activities
Investing
activities:
Purchase of
property, plant (799) (575) (1,445) (2,792) (5,531)
and equipment
Other investing
activities (52) (83) 1,222 8 (6,897)
(net)
Net cash used
in investing (851) (658) (223) (2,784) (12,428)
activities
Financing
activities:
(Payments)
proceeds
relating to (2,194) (3,020) (3,315) (8,595) 4,873
payable to
banks and
long-term debt
Dividends paid (335) (306) (594) (1,338) (2,576)
Share - - - (234) (4,440)
buy-back19
Offering of - - - 3,153 -
common shares
Mandatory
convertible 750 - - 750 -
bond
Other financing
activities (38) (27) - (83) 11
(net)
Net cash used
in financing (1,817) (3,353) (3,909) (6,347) (2,132)
activities
Net (decrease)
increase in 147 (1,623) 1,745 (1,853) 92
cash and cash
equivalents
Effect of
exchange rate (60) 210 (184) 196 (376)
changes on cash
Change in cash
and cash $87 $(1,413) $1,561 $(1,657) $(284)
equivalents
Appendix 1 - Key financial and operational information - Full year 2009
In million of U.S. dollars, except crude steel Flat Long Carbon Steel production, Carbon Flat Carbon Americas AACIS Stainless Solutions steel Americas Europe and Europe Steel and shipment and Services average steel selling price data. FINANCIAL INFORMATION Sales $13,340 $19,981 $16,767 $7,627 $4,234 $13,524 Depreciation and (1,170) (1,505) (1,379) (547) (329) (356) impairment Operating (757) (540) (29) 265 (172) (286) income (loss) Operating margin (as a (5.7%) (2.7%) (0.2%) 3.5% (4.1%) (2.1%) % of sales) EBITDA4 1,119 1,907 1,666 1,002 258 (97) EBITDA margin (as a % of 8.4% 9.5% 9.9% 13.1% 6.1% (0.7%) sales) Capital 523 937 545 435 127 132 expenditure20 OPERATIONAL INFORMATION Crude steel production 16,556 22,752 18,901 13,411 1,616 - (Thousand MT) Steel shipments 16,121 21,797 19,937 11,769 1,447 16,794 (Thousand MT) Average steel selling price 698 799 743 506 2,763 767 ($/MT)21
Appendix 1 - Key financial and operational information - Fourth Quarter of 2009
In million of U.S. dollars, except crude steel Flat Long Carbon Steel production, Carbon Flat Carbon Americas AACIS Stainless Solutions steel Americas Europe and Europe Steel and shipment and Services average steel selling price data. FINANCIAL INFORMATION Sales $4,069 $5,934 $4,578 $2,274 $1,253 $3,489 Depreciation and (344) (427) (561) (143) (103) (189) impairment Operating 180 230 (79) 167 10 230 income (loss) Operating margin (as a 4.4% 3.9% (1.7%) 7.3% 0.8% 6.6% % of sales) EBITDA4 524 657 482 310 113 39 EBITDA margin (as a % of 12.9% 11.1% 10.5% 13.6% 9.0% 1.1% sales) Capital 156 203 166 161 43 44 expenditure20 OPERATIONAL INFORMATION Crude steel production 5,402 7,410 5,356 3,899 452 - (Thousand MT) Steel shipments 4,834 6,408 5,228 3,075 415 4,167 (Thousand MT) Average steel selling price 719 807 755 550 2,820 794 ($/MT)21
Appendix 2a: Steel Shipments by geographical location22
Amounts in thousand of tonnes 4Q 09 3Q 09 2Q 09 1Q 09 2009 Flat Carbon America: 4,834 4,162 3,481 3,644 16,121 North America 3,271 2,676 2,247 2,557 10,751 South America 1,563 1,486 1,234 1,087 5,370 Flat Carbon Europe: 6,408 5,601 4,974 4,814 21,797 Europe 6,408 5,601 4,974 4,814 21,797 Long Carbon: 5,228 5,025 5,261 4,423 19,937 North America 1,021 828 1,067 946 3,862 South America 1,177 1,243 1,072 994 4,486 Europe 2,838 2,783 2,907 2,225 10,753 Other23 192 171 215 258 836 AACIS: 3,075 3,043 2,897 2,754 11,769 Africa 1,137 1,235 1,035 1,010 4,417 Asia, CIS & Other 1,938 1,808 1,862 1,744 7,352 Stainless Steel: 415 354 363 315 1,447
Appendix 2b: EBITDA4 by geographical location
Amounts in USD millions 4Q 09 3Q 09 2Q 09 1Q 09 2009
Flat Carbon America24 524 332 176 87 1,119
North America 127 148 112 13 400
South America 397 184 64 74 719
Flat Carbon Europe: 657 271 517 462 1,907
Europe 657 271 517 462 1,907
Long Carbon: 482 589 327 268 1,666
North America 13 (42) (38) (78) (145)
South America 419 449 305 287 1,460
Europe 43 135 42 29 249
Others
7 47 18 30 102
23
AACIS: 310 235 273 184 1,002
Africa 120 46 14 8 188
Asia, CIS & Other 190 189 259 176 814
Stainless Steel: 113 133 17 (5) 258
Appendix 2c: Iron Ore production
(Production million tonnes)(a)
Mine location Type Product 4Q 09 3Q 09 2Q 09 1Q 09 2009
North America Open Pit Concentrate and 5.4 4.5 4.8 5.5 20.2
(b) Pellets
South America Open pit Lump and Sinter 0.7 0.8 0.7 0.4 2.5
(d) feed
Europe Open pit Lump and fines 0.3 0.4 0.3 0.2 1.1
Africa Open Pit / Lump and fines 0.3 0.2 0.3 0.3 1.1
Underground
Asia, CIS & Open Pit / Concentrate, 3.3 3.5 3.1 3.0 12.8
Other Underground lump and fines
Captive - iron 9.9 9.3 9.1 9.3 37.7
ore
North America Open Pit Pellets 4.1 2.2 1.3 1.0 8.5
(c)
South America Open Pit Lump and Fines 0.1 0.3 0.3 0.3 1.1
(d)
Africa (e) Open Pit Lump and Fines 1.5 1.4 1.3 1.4 5.5
Long term
contract - iron 5.7 3.8 2.9 2.6 15.1
ore
Group 15.6 13.1 12.1 11.9 52.7
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%), Wabush (Canada-28.57%) and Pena (Mexico-50%). On October 9, 2009, ArcelorMittal entered into an agreement to divest its non-controlling (minority) interest in Wabush Mines in Canada. The transaction was completed in February 2010.
c) Long-term supply contract with Cleveland Cliffs; prices are formula based.
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) Strategic agreement with Sishen/Thabazambi (Africa); prices on a cost plus basis.
Appendix 2d: Coal production
(Production million tonnes)
Mine location 4Q 09 3Q 09 2Q 09 1Q 09 2009
North America 0.5 0.5 0.5 0.5 2.1
Asia, CIS & Other 1.2 1.2 1.3 1.4 5.1
Captive - coal 1.7 1.7 1.8 1.9 7.1
North America (a) 0.0 0.1 0.0 0.0 0.2
Africa (b) 0.1 0.1 0.1 0.0 0.3
Coal - long term contracts 0.1 0.1 0.1 0.1 0.4
Group 1.9 1.9 1.9 2.0 7.6
a) Strategic agreement - prices on a cost plus basis.
b) Long term lease - prices on a cost plus basis.
Appendix 3: Debt repayment schedule as at December 31, 2009
Debt repayment schedule ($ billion) 2010 2011 2012 2013 2014 >2014 Total Term loan repayments - - Under EUR12bn syndicated credit - 3.5 - - - - 3.5 facility - Convertible Bonds10, 13 - 0.1 - - 2.0 - 2.1 - Bonds 0.9 - - 3.6 1.8 6.1 12.4 Subtotal 0.9 3.6 - 3.6 3.8 6.1 18.0 LT revolving credit lines - EUR5bn syndicated credit facility - - - - - - - - $4bn syndicated credit facility - - - - - - - Commercial paper25 1.5 - - - - - 1.5 Other loans 1.7 0.7 1.5 0.5 0.2 0.7 5.3 Total Gross Debt 4.1 4.3 1.5 4.1 4.0 6.8 24.8
Appendix 4: Credit lines available as at December 31, 2009
Credit lines available ($ billion) Equiv. $ Drawn Available EUR5bn syndicated credit facility26 $7.2 $0.0 $7.2 $4bn syndicated credit facility $4.0 $0.0 $4.0 Total committed lines $11.2 $0.0 $11.2
Appendix 5 - Other ratios as at December 31, 2009
Ratios
LOS ANGELES, CA -- (MARKET WIRE) -- 02/10/10 -- In this time of political turmoil, Iran occupies the center stage in international news reporting. Few have been able to dramatize the terror of actual living in a fundamentalist Islamic state as journalist Mehrdad Balali has. In his autobiographical novel "Houri" (released by The Permanent Press in New York), Balali paints a fascinating portrait of a country torn by religious extremism and raw violence. It is a revealing portrait of often contrasting Islamic and Persian cultures as powerful as "The Kite Runner," while sharing the raw honesty of childhood poverty found in "Angela's Ashes."
Shahed is a tormented Iranian expatriate in the U.S. who journeys to his homeland after his father's death, to discover his childhood world stripped to religious austerity, punishment and fear. He returns in memory to his life as a dreamy 12-year-old boy in Tehran, dominated by his larger-than-life father, an exuberant hustler whose exploits leave his family in grim poverty. Young Shahed's world is bound by his school and its greedy, sadistic principal, and a neighborhood of picaresque operators presided over by his dad.
Craving American delights such as hamburger and Coca-Cola, Shahed begins stealing to get a taste of the American wonderland. The boy's heart is captured by the sensuous Houri, an embodiment of all Paradise promises. As his petty crimes and hopeless love escalate, he's brought into competition with his father and ultimately suffers a crushing betrayal that scars him for life.
But in the stark realities of post-Revolution Iran, Shahed understands his father's true legacy to him: the power to hungrily devour every moment of life, however harsh or corrupt it may be, and live to the fullest.
"Houri" reveals vivid, authentic details of a culture alien to most Westerners in a country that has been named an ideological and nuclear threat to the world. Amidst the horrors of militant fundamentalist takeover, the novel contains a universal story of bitter rivalry and harsh love between father and son, seasoned with the dark humor essential to survival in a harsh world.
Mehrdad Balali is an Iranian-born American who returned to his homeland as a career journalist in 1991. He worked for the next 15 years for international news agencies such as Reuters, Agence France-Presse and the Economist and frequently appeared as a commentator on CNN, BBC and NPR. After being banned from working in Iran, he returned to the United States to spend his time writing fiction.
"Houri" is available on Amazon.com, Barnes & Noble, and numerous other retailers.
Click here, http://www.ballantinesbiz.com/houri/Houri_Reviews_020810.html, to read the excellent reviews by:
-- Booklist -- Publishers Weekly -- Kirkus -- The Independent -- Critics.org
Add to Digg Bookmark with del.icio.us Add to Newsvine
To obtain a copy for review, or to book Balali for political commentary, please contact: Jenn Deese Ballantines PR Email Contact Tel: 310 454 3080 http://www.ballantinespr.com
HELSINKI, Finland, Feb. 10, 2010 (GLOBE NEWSWIRE) -- Stora Enso has signed an agreement with the European Investment Bank (EIB) for a EUR 65 million loan to be used for the Ostroleka power plant construction project in Poland. The loan agreement is part of the commitment by EIB to lend altogether EUR 230 million to Stora Enso for research and development and the Ostroleka power plant project.
"We have a long and good relationship with EIB and we are delighted that through this agreement EIB is supporting our power plant project to improve Ostroleka Mill's energy self-sufficiency and energy efficiency. Along with the Langerbrugge and Maxau energy investments, the Ostroleka power plant is one of our biggest cost improvement investments this year at our existing mills in Europe. The terms of the loan are very competitive," says Stora Enso CFO Markus Rauramo.
The Ostroleka power plant to be completed in the third quarter of 2010 will further improve the cost competitiveness of Stora Enso's operations in Poland. As announced on 3 November 2008, the total investment in the Ostroleka power plant is estimated at EUR 137 million.
Stora Enso is the world leader in forest industry sustainability. We offer our customers solutions based on renewable raw materials. Our products provide a climate-friendly alternative to many non-renewable materials, and have a smaller carbon footprint. Stora Enso is listed in the Dow Jones Sustainability Index and the FTSE4Good Index. Stora Enso employs some 27 000 people worldwide, and our sales in 2009 amounted to EUR 8.9 billion. Stora Enso shares are listed on NASDAQ OMX Helsinki (STEAV, STERV) and Stockholm (STE A, STE R). In addition, the shares are traded in the USA as ADRs (SEOAY) in the International OTCQX over-the-counter market.
STORA ENSO OYJ
Jari Suvanto
Ulla Paajanen-Sainio
CONTACT: Stora Enso Oyj
Jyrki Tammivuori, SVP, Group Treasurer
+358 2046 21043
Ulla Paajanen-Sainio, Head of Investor Relations
+358 2046 21242
www.storaenso.com
www.storaenso.com/investors
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