By KEVIN NEVERS

Arcelor Mittal (AM) is reporting a pro forma net income for 2006 of $7.973 billion or $5.76 per share, compared with a pro forma net income of $8.263 billion or $5.97 per share in 2005.

Other pro forma numbers for 2006:

•EBITDA—operating income plus depreciation—was $15.272 billion, compared to $14.959 in 2005.

•Operating income was $11.824 billion, compared to $11.648 in 2005.

•Sales were $88.576 billion, compared to $80.171 billion in 2005.

•Shipments were 110.5 million metric tons, compared to 102.9 million metric tons in 2005.

“I am pleased to report a strong performance in 2006 for Arcelor Mittal, with strong cash flow from operations and EBITDA in line with guidance,” said AM President and CEO Lakshmi Mittal. “This strong set of pro forma numbers clearly demonstrates the benefits of the merger between Arcelor and Mittal Steel. On a pro forma basis, Arcelor Mittal has now reported consistent EBITDA of approximately $15 billion for three years, illustrating how our diversified geographic and product profile is helping deliver sustainable results.”

“The integration of Mittal Steel with all of its recent acquisitions is progressing well, and we are on track to deliver anticipated synergies,” Mittal added. “Simultaneously, we are continuing to execute our strategy and further build on our market leading position, as seen by our recent acquisitions and expansion plans both in steel and mining.”

“Looking forward,” Mittal said, “the market is stable and we are anticipating performance for the first quarter of 2007 to be in line with four quarter 2006 levels.”

Pro forma results for 2006 and 2005 include, among other things, the results of the following acquisitions as though those acquisitions had been made on Jan. 1, 2006, and Jan. 1, 2005, respectively: the acquisition of Arcelor on Aug. 1, 2006; and the acquisition of International Steel Group on April 15, 2005.

Pro forma results for the fourth quarter of 2006:

•Net income was $2.371 billion or $1.72 per share, compared to $2.182 or $1.58 billion in the third quarter.

•EBITDA was $4.118 billion, compared to $4.354 billion in the third quarter.

•Operating income was $3.243 billion, compared to $3.444 billion in the third quarter.

•Sales were $23.203 billion, compared to $22.069 billion in the third quarter.

•Shipments were 26.7 million metric tons, compared to 26.9 million metric tons in the third quarter.

Other Numbers

•As of Dec. 31, 2006, the company’s cash and cash equivalents, including restricted cash and short-term investments, were $6.1 billion. In addition, it had a borrowing capacity of $9 billion, compared to $5.9 billion on Sept. 30, 2006.

•As of Dec. 31, the company’s net debt—long-term debt plus short-term debt, less cash and cash equivalents, restricted cash, and short-term investments—was reduced by $2.3 billion to $20.4 billion as compared to Sept. 30.

•The Flat Carbon Americas segment reported the following pro forma numbers for the fourth quarter: shipments of 6.7 million metric tons, compared to 7.4 million metric tons in the third quarter; sale of $5.1 billion, compared to $5.4 billion in the third quarter; and operating income of $800 million, compared to the same in the third quarter. Operating results for the fourth quarter “were impacted mostly by lower shipments, particularly in North America, due to a slow down in the market and a reduction of spot market orders as service centers experiencing higher inventories.”

Outlook

“The company expects first quarter EBITDA to be between $4.0 and $4.2 billion,” AM said. “The company expects overall shipment levels to remain in line with fourth quarter 2006 levels. Flat Carbon Americas profitability is expected to continue to suffer from de-stocking, while performance for Flat Carbon Europe segment is expected to remain positive. The performance of the Long Carbon Americas and Europe is expected to increase. The performance of the Stainless Steel segment is to remain at high levels.”

Posted 2/21/2007