Overview

2016 was a year of important progress for ArcelorMittal.

Action 2020

Action 2020 is ArcelorMittal's commitment to structurally improving profitability and cash flow generation.

Governance

Good corporate governance is about compliance, continuous stakeholder dialogue and being a good corporate citizen.

Fact book

Details of our steel and mining operations, financials, production facilities and shareholder information.

Quarterly condensed income statement

Annually and Quarterly (2015 and 2016)

In millions of U.S. dollars 2015 2016 1Q 15 2Q 15 3Q 15 4Q 15 1Q 16 2Q 16 3Q 16 4Q 16
Sales 63,578 56,791 17,118 16,890 15,589 13,981 13,399 14,743 14,523 14,126
Depreciation (3,192) (2,721) (807) (801) (777) (807) (652) (680) (693) (696)
Impairment1 (4,764) (205) - (19) (27) (4,718) - (49) - (156)
Exceptional (charges)2/income (1,436) 832 - - (527) (909) - 832 - -
                     
Operating income/(loss) (4,161) 4,161 571 579 20 (5,331) 275 1,873 1,204 809
Operating margin % (6.5%) 7.3% 3.3% 3.4% 0.1% (38.1%) 2.1% 12.7% 8.3% 5.7%
                     
Income (loss) from associates, joint ventures and other investments (502) 615 (2) 125 30 (655) 324 168 109 14
Net interest expense (1,278) (1,114) (323) (325) (318) (312) (332) (306) (255) (221)
Foreign exchange and other net financing gain/(loss) (1,580) (942) (756) (73) (409) (342) 9 (450) (223) (278)
Income (loss) before taxes and non-controlling interest (7,521) 2,720 (510) 306 (677) (6,640) 276 1,285 835 324
Current tax (331) (254) (125) (54) (113) (39) (24) (83) (67) (80)
Deferred tax (571) (732) (85) (70) (14) (402) (676) (70) (79) 93
Income tax benefit/(expense) (902) (986) (210) (124) (127) (441) (700) (153) (146) 13
Income (loss) including non-controlling interests (8,423) 1,734 (720) 182 (804) (7,081) (424) 1,132 689 337
Non-controlling interests (income)/loss 477 45 (8) (3) 93 395 8 (20) (9) 66
Net Income/(loss) attributable to the equity holders of the parent (7,946) 1,779 (728) 179 (711) (6,686) (416) 1,112 680 403
                     
Basic earnings (loss) per common share ($) (3.43) 0.62 (0.31) 0.08 (0.31) (2.89) (0.18) 0.38 0.22 0.13
Diluted earnings (loss) per common share ($)3 (3.43) 0.62 (0.31) 0.08 (0.31) (2.89) (0.18) 0.38 0.22 0.13
                     
Weighted average common shares outstanding (in millions) 2,316 2,860 2,314 2,315 2,318 2,317 2,314 2,961 3,059 3,059
Adjusted diluted weighted average common shares outstanding (in millions) 2,316 2,865 2,314 2,319 2,318 2,317 2,314 2,964 3,063 3,064
                     
EBITDA4 5,231 6,255 1,378 1,399 1,351 1,103 927 1,770 1,897 1,661
EBITDA Margin % 8.2% 11.0% 8.0% 8.3% 8.7% 7.9% 6.9% 12.0% 13.1% 11.8%

1. Impairment charges for 12M 2016 were $205 million of which $49 million related to the sale of ArcelorMittal Zaragoza in Spain and $156 million mainly related to the Vanderbijlpark plant in South Africa.

Impairment charges for 12M 2015 were $4.8 billion relating to:

  • Mining segment ($3.4 billion): consisting of $0.9 billion with respect to goodwill and $2.5 billion primarily related to fixed assets maily due to downward revison of cash flow projections related to the expected persistence of a lower raw material price outlook at:
    • ArcelorMittal Liberia ($1.4 billion);
    • Las Truchas in Mexico ($0.2 billion);
    • ArcelorMittal Serra Azul in Brazil ($0.2 billion); and
    • ArcelorMittal Princeton coal mining operations in the United States ($0.7 billion)
  • Steel segments ($1.4 billion): consisting of fixed asset impairment charges of $0.2 billion related to the intended sale of the Long Carbon facilities in the US (ArcelorMittal La Place, Steelton and Vinton within the NAFTA segment), $0.4 billion primarily in connection with the idling for an indefinite time of the ArcelorMittal Sestao plant in Spain (Europe segment), and $0.8 billion related to:
    • NAFTA: Deployment of asset optimization programs at Indiana Harbor East and West in the United States ($0.3 billion);
    • Brazil: ArcelorMittal Point Lisas in Trinidad and Tobago ($0.2 billion) currently idled; and
    • ACIS: Saldanha plant in South Africa as a result of its revised competitive outlook ($0.3 billion)

2. Exceptional income for 12M 2016 was $832 million relating to a one-time gain on employee benefits following the signing of the new US labour contract. Exceptional charges for 12M 2015 were $1.4 billion primarily including $1.3 billion inventory related charges following the rapid decline of international steel prices and litigation and other costs in South Africa ($0.1 billion).

3. Diluted earnings per common share include assumed shares from employee share-based payments and convertible debt (if dilutive) in the weighted average number of common shares outstanding during the periods presented.

Following the Company’s equity offering in April 2016, the basic and diluted earnings (loss) per share for prior periods have been recasted in accordance with IFRS in the current year for the three months starting 1Q'15 and for the years ended December 31, 2014 and December 31, 2015, to include the bonus element derived from the 35% discount to the theoretical ex-right price included in the subscription price.

4. EBITDA defined as operating income plus depreciation, impairment expenses and exceptional charges/(income).