ArcelorMittal Q1: 5% increase in sales volume

ArcelorMittal, the industrial metals and mining company, with a current Market Cap of R17.8 billion, has released unaudited results for quarter 1 ended 31 March 2014.

Highlights from the results:

• Steel sales volume up 5% versus Q1 2013
• Positive EBITDA of R754 million
• Positive headline earnings of 81 cents per share

ArcelorMittal stated that, "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%.

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."

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