9 May 2014 - ArcelorMittal South Africa Limited - Unaudited group earnings results and physical information for the quarter ended 31 March 2014

- Steel sales volume up 5% versus Q1 2013
- Positive EBITDA of R754 million
- Positive headline earnings of 81 cents per share
      
Overview
Globally the economy showed no clear trend. Overall there was some recovery in global steel demand, albeit off a very low base, and demand in China remained moderate. International iron ore prices declined while steel prices increased modestly compared to the preceding quarter. While solid growth, driven by infrastructure investments, continued in the sub-Saharan Africa region, the sentiment in South Africa remained subdued. The relatively low activity in the manufacturing, construction and mining sectors continued, and competition from imports remained high.

Our liquid steel production was 1 241 k tonnes, an increase of 213 k tonnes compared to the same period last year which saw low production figures following the fire incident at Vanderbijlpark. Sales volumes increased 5% mainly due to higher exports, while local sales volumes were down 11%.

Safety performance was satisfactory. The plant in Vanderbijlpark operated during the whole of first quarter without any lost-time injury. Overall the lost-time injury frequency rate was 0.52, slightly higher than in the same period in the previous year (0.43), but lower than the 2013 full year average of 0.56.

ArcelorMittal South Africa recorded a headline profit of R323 million for the quarter ended 31 March 2014, compared to a headline loss of R270 million in the corresponding period last year. EBITDA improved by R585 million to R754 million compared to the same period last year. This improvement was supported by the weakening of the rand and improved competitiveness of iron ore supply.

The net cash position was negative at R191 million, following the build-up of metal stocks in preparation for the reline of our blast furnace in Newcastle starting in May 2014.

Source: www.arcelormittalsa.com