ArcelorMittal announced results for the three and twelve month periods ended December 31, 2011. For fiscal 2011, net income of $2.3 billion dropped from $2.9 billion while total yearly steel shipments increased 0.9% to 85.8 million metric tons, up slightly from 85.0mmt in fiscal 2010. Total sales were up 20.4% from the previous year due to 17.7% higher steel selling prices and better steel shipments.

For fourth quarter 2011 results, the company reported a net loss of $1.0 billion, down from a positive net income in the third quarter. Total steel shipments for 4Q11 were 20.6mmt, down from 21.1mmt in 3Q11 and 4Q10. Sales dropped 7.3% from the previous quarter, but sales were up 8.5% compared to the previous year’s fourth quarter. Lower 4Q11 sales were attributed to 6.2% lower steel selling prices and 2.5% lower steel shipment volumes than 3Q11.

Mr. Lakshmi N. Mittal, Chairman and CEO, ArcelorMittal, said, “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.”

Three of ArcelorMittal’s ongoing projects, including ArcelorMittal Dofasco (in Canada), ArcelorMittal Vega Do Sul (in Brazil) and Monlevade (in Brazil), have been put on hold. Both the Dofasco and Vega Do Sul projects involve adding production for flat rolled products [Dofasco Galvalume expansion project]. However, the three mining projects are still slated to finish by 2013.

Flat Carbon Americas crude steel production increased 2.4% to 6.0 million tons in 4Q11 from the previous quarter due to “normalized North American production following downtime during the third quarter of 2011, offset by lower production primarily in South America operations,” according to the company report. Fourth quarter steel shipments dropped 4.4% from the third quarter with lower shipments in all operations except in the US. Sales declined 8.5% from 3Q11 due to lower selling prices and volumes.

The outlook for the first half of 2012 shipments is to be at comparable levels as the first half of 2011. Mining production is expected to increase in the first half 2012 with full year 2012 iron ore and coal production gaining approximately 10%.

Source: ArcelorMittal