ROTTERDAM, Netherlands, February 15 /PRNewswire-FirstCall/ --
Mittal Steel Company N.V. ("Mittal Steel" or "the Company"), the
world's largest and most global steel company, today announced
results for the three months and year ended December 31, 2005.
Highlights: Solid results given current market conditions (US
dollars in millions except per share data and shipments) 4Q 2005 3Q
2005 4Q 2004 12M 2005 12M 2004 Shipments (000'ST) 13,642 12,976
10,097 49,178 42,071 Sales 7,054 7,050 6,177 28,132 22,197
Operating income 871 765 1,725 4,746 6,146 Net income 650 478 1,554
3,365 4,701 Earnings Per Share ($) 0.92 0.68 2.42 4.90 7.31 The
results for 2005 include Mittal Steel USA ISG Inc. ("ISG"),
formerly International Steel Group, which merged with Mittal Steel
Company N.V. from April 15, 2005, and the results of Mittal Steel
Kryviy Rih, formerly Kryvorizhstal, as from November 26, 2005. As a
result, prior period results may not be entirely comparable. -
Further strengthening of global position - US: ISG acquisition
establishes Mittal Steel as No. 1 producer in the US - China:
Signed first foreign steel-making JV in China with Hunan Valin
Steel Tube & Wire - India: Memorandum of Understanding ("MoU")
signed to build 12 million ton vertically integrated steel plant in
Jharkhand - Ukraine: Acquisition of Kryvorizstal - Improved
vertical integration - Increased raw material reserves through
acquisitions in Ukraine, Liberia, and MoU's in India and Senegal
Arcelor offer - Mittal Steel Company N.V. has launched an offer to
the shareholders of Arcelor SA ("Arcelor") which will create the
world's first 100 million ton plus steel producer. The offer values
each Arcelor share at EUR28.21 which represents a 27% premium over
the closing price and all time high on Euronext Paris of Arcelor
shares as at 26 January 2006, a 31% premium over the volume
weighted average price in the preceding month, and a 55% premium
over the volume weighted average share price in the preceding 12
months. For further details refer to the Company's press release
issued on January 27, 2006, which can be located on the Company's
website. Commenting, Lakshmi N Mittal, Chairman and CEO Mittal
Steel Company, said: "We are pleased to report solid performance in
a more challenging year. 2005 was also a year of considerable
strategic progress for the Company as we further expanded our
global position and strengthened our vertically integrated model.
"The strength of our performance in current market conditions
illustrates the increased stability that industry consolidation has
delivered. This same logic lies at the heart of our proposed
strategic merger with Arcelor. The steel industry needs strong,
value creating, growing companies with global reach which this
combination would deliver. "We are pleased with the very positive
reception our offer has received, and are confident that progress
is being made towards establishing the regulatory framework for the
offer." Fourth quarter and full year 2005 Earnings Conference Call
Lakshmi N. Mittal, Chairman and Chief Executive Officer, and Aditya
Mittal, President and Chief Financial Officer, will host a
conference call for members of the investment community to discuss
the Company's financial results and general business operations at
9:30 AM New York time / 2:30 PM London time on Wednesday, February
15, 2006. The conference call will include a brief question and
answer session with senior management. The conference call
information is as follows: Date: Wednesday, February 15, 2006 Time:
9:30 AM New York Time / 2:30 PM London Time Dial-In Number from
within the U.S.: +1 617 614 2706 Dial-In Number from within the
U.K.: +44 20 7365 8426 Pass code: Mittal Steel For individuals
unable to participate in the conference call, a telephone replay
will be available until February 22, 2006 at: Replay Number from
within the U.S.: +1 617 801 6888 Replay Number from within the
U.K.: +44 20 7365 8427 Pass code: 19999424 A web cast of the
conference call can also be accessed via
http://www.mittalsteel.com/ and will be available for one week.
Real Player or Windows Media Player will be required in order to
access the web cast. No Offer No offer to exchange or purchase any
Arcelor shares will be made in the Netherlands or in any
jurisdiction other than Luxembourg, France, Spain, Belgium and the
United States. This communication does not constitute an offer to
exchange or purchase any Arcelor shares. Such an offer will be made
only pursuant to an official offer document approved by the
appropriate regulators. Important Information In connection with
its proposed acquisition of Arcelor S.A., Mittal Steel Company will
file important documents with the United States Securities and
Exchange Commission (SEC), including a registration statement on
Form F-4, a prospectus for the exchange offer and related
documents. Investors and Arcelor security holders are urged to
carefully read all such documents when they become available
because they will contain important information. Investors and
Arcelor security holders may obtain copies of the documents, when
available, free of charge on the SEC's website at
http://www.sec.gov/, as well as from Mittal Steel on its website at
http://www.mittalsteel.com/. Forward-Looking Statements This
communication contains forward-looking information and statements
about Mittal Steel Company N.V., Arcelor S.A. and their combined
businesses after completion of the proposed acquisition.
Forward-looking statements are statements that are not historical
facts. These statements include financial projections and estimates
and their underlying assumptions, statements regarding plans,
objectives and expectations with respect to future operations,
products and services, and statements regarding future performance.
Forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 are generally identified
by the words "believe," "expect," "anticipate," "target" or similar
expressions. Although Mittal Steel's management believes that the
expectations reflected in such forward-looking statements are
reasonable, investors and holders of Arcelor's securities are
cautioned that forward-looking information and statements are
subject to various risks and uncertainties, many of which are
difficult to predict and generally beyond the control of Mittal
Steel, that could cause actual results and developments to differ
materially from those expressed in, or implied or projected by, the
forward-looking information and statements. These risks and
uncertainties include those discussed or identified in the public
filings with the Netherlands Authority for the Financial Markets in
the Netherlands and the SEC made or to be made by Mittal Steel,
including on Form 20-F and on Form F-4. Mittal Steel undertakes no
obligation to publicly update its forward-looking statements,
whether as a result of new information, future events, or
otherwise. For further information, visit our web site:
http://www.mittalsteel.com/, or call: MITTAL STEEL COMPANY N.V.
REPORTS FOURTH QUARTER AND FULL YEAR 2005 RESULTS Mittal Steel
Company N.V. (NYSE:MT)(AEX:MT), net income for the three months
ended December 31, 2005, was $650 million or $0.92 per share, as
compared with net income of $478 million or $0.68 per share for the
three months ended September 30, 2005, and $1.6 billion or $2.42
per share for the three months ended December 31, 2004.
Consolidated sales and operating income for the three months ended
December 31, 2005, were $7.1 billion and $871 million,
respectively, as compared with $7.1 billion and $765 million,
respectively, for the three months ended September 30, 2005, and as
compared with $6.2 billion and $1.7 billion, respectively, for the
three months ended December 31, 2004. Total steel shipments[1] for
the three months ended December 31, 2005, were 13.6 million tons as
compared with 13.0 million tons for the three months ended
September 30, 2005, and 10.1 million tons for the three months
ended December 31, 2004. Mittal Steel Company N.V. net income for
the twelve months ended December 31, 2005, was $3.4 billion or
$4.90 per share, as compared to net income of $4.7 billion or $7.31
per share for the twelve months ended December 31, 2004.
Consolidated sales and operating income for the twelve months ended
December 31, 2005, were $28.1 billion and $4.7 billion,
respectively, compared to $22.2 billion and $6.1 billion,
respectively, for the twelve months ended December 31, 2004. Total
steel shipments for the twelve months ended December 31, 2005, were
49.2 million tons as compared to 42.1 million tons for the twelve
months ended December 31, 2004. Group inter-company transactions
have been eliminated in financial consolidation. The financial
information has been prepared based on US generally accounting
principles. Analysis of operations The following analysis of
operations include the results of Mittal Steel USA ISG Inc., as
from April 15, 2005, the results of Mittal Steel Kryviy Rih, as
from November 26, 2005, and Mittal Steel Zenica in Bosnia as from
December 10, 2004. As a result, prior period results may not be
entirely comparable. Steel shipments were higher by 5% in the three
months ended December 31, 2005, as compared with the three months
ended September 30, 2005 (1% higher excluding Mittal Steel Kryviy
Rih). Steel shipments for the three months ended December 31, 2005,
were 35% higher as compared with the three months ended December
31, 2004, primarily due to the inclusion of ISG and Mittal Steel
Kryviy Rih (6% lower excluding ISG, Mittal Steel Kryviy Rih and
Mittal Steel Zenica). Average price realization in the three months
ended December 31, 2005, remained flat as compared with the three
months ended September 30, 2005 (2% higher excluding Mittal Steel
Kryviy Rih) and decreased by 9% as compared with the three months
ended December 31, 2004 (14% lower excluding ISG, Mittal Steel
Kryviy Rih and Mittal Steel Zenica). Cost of goods sold per ton
during the three months ended December 31, 2005, remained flat as
compared with the three months ended September 30, 2005 (1% higher
excluding Mittal Steel Kryviy Rih). Cost of goods sold per ton
during the three months ended December 31, 2005, was higher by 15%
as compared with the three months ended December 31, 2004,
primarily due to a steep increase in the cost of almost all inputs
(5% higher excluding ISG, Mittal Steel Kryviy Rih and Mittal Steel
Zenica). Selling, general and administrative expenses in the three
months ended December 31, 2005 increased by 11% as compared with
the three months ended September 30, 2005, and decreased by 4% as
compared with the three months ended December 31, 2004. Operating
income for the three months ended December 31, 2005, was $871
million as compared with $765 million for the three months ended
September 30, 2005. The merger of ISG and Ispat Inland to create
Mittal Steel USA on December 31, 2005, negatively affected
operating income for the three months ended December 31, 2005, by
US$ 52 million due to the conformation of accounting policies of
the merged entities. Operating income for the three months ended
December 31, 2004, was $1.7 billion. Other income / expenses (net)
for the three months ended December 31, 2005, were $27 million as
compared with $10 million for the three months ended September 30,
2005. Other income / expenses (net) for the three months ended
December 31, 2004, were $104 million. Net interest expense at
Mittal Steel Company N.V. for the three months ended December 31,
2005, increased to $91 million as compared with $50 million for the
three months ended September 30, 2005, primarily due to the
increased debt resulting from the Mittal Steel Kryviy Rih
acquisition, as well as the provision for penalties arising from
the early retirement of certain long term debts totaling $11
million and the increase in base interest rates. Net interest
expense for the three months ended December 31, 2005, was higher as
compared with $50 million for the three months ended December 31,
2004 primarily due to the increased borrowing for the acquisition
of, and assumption of debt at, ISG and Mittal Steel Kryviy Rih, as
well as the increase in base interest rates. Mittal Steel Company
N.V.'s income tax expense for the three months ended December 31,
2005 amounted to $92 million as compared with $164 million for the
three months ended September 30, 2005. The effective tax rate for
the three months ended December 31, 2005, was 11% as compared with
22% for the three months ended September 30, 2005. Mittal Steel
Company N.V.'s income tax expense for the three months ended
December 31, 2004, amounted to $2 million. In the three months
ended December 31, 2005, the aggregate tax rate was lower primarily
due to release in valuation allowances and one-time tax credits in
some of our operating jurisdictions. Net income for the three
months ended December 31, 2005, increased to $650 million as
compared with the three months ended September 30, 2005, of $478
million, and lower as compared with the three months ended December
31, 2004, of $1.6 billion, owing to the reasons as discussed above.
Americas Total steel shipments in the Americas region were 6.2
million tons in the three months ended December 31, 2005, as
compared with 5.8 million tons for the three months ended September
30, 2005, and 2.8 million tons for the three months ended December
31, 2004. Sales were higher at $3.7 billion for the three months
ended December 31, 2005, as compared with $3.4 billion for the
three months ended September 30, 2005. Sales were higher in the
three months ended December 31, 2005, as compared to $1.8 billion
for the three months ended December 31, 2004 primarily due to the
inclusion of ISG. Operating income was $225 million for the three
months ended December 31, 2005 as compared with $184 million for
the three months ended September 30, 2005, primarily due to higher
volumes, slightly higher selling prices partly offset by higher
costs. In addition, as a result of the merger of ISG and Ispat
Inland to create Mittal Steel USA on December 31, 2005, operating
income was negatively impacted by US$52 million due to the
conformation of accounting policies of the merged entities.
Operating income for the three months ended December 31, 2005, was
lower as compared with $483 million for the three months ended
December 31, 2004. Europe Total steel shipments in the European
region were 4.6 million tons for the three months ended December
31, 2005, as compared with 4.0 million tons for the three months
ended September 30, 2005 (4% higher excluding Mittal Steel Kryviy
Rih). Total steel shipments for the three months ended December 31,
2004, were 4.5 million tons. Sales were lower at $2.0 billion in
the three months ended December 31, 2005 as compared with $2.3
billion for the three months ended September 30, 2005, and $2.8
billion for the three months ended December 31, 2004. Operating
income was $173 million for the three months ended December 31,
2005 as compared with $47 million for the three months ended
September 30, 2005, due to improved volumes and cost, partly offset
by a negative impact of $19 million on account of purchase
accounting at Mittal Steel Kryviy Rih. Operating income was $480
million for the three months ended December 31, 2004. Asia &
Africa Total steel shipments in the Asia & Africa region were
2.8 million tons in the three months ended December 31, 2005, as
compared with 3.2 million tons for the three months ended September
30, 2005. Total steel shipments for the three months ended December
31, 2004 were 2.8 million tons. Sales were higher at $1.8 billion
in the three months ended December 31, 2005, as compared with $1.7
billion for the three months ended September 30, 2005 and $2.2
billion for the three months ended December 31, 2004. Operating
income was marginally lower at $477 million for the three months
ended December 31, 2005 as compared with $479 million for the three
months ended September 30, 2005. Operating income for the three
months ended December 31, 2005, was lower as compared with $688
million for the three months ended December 31, 2004. Liquidity The
Company's liquidity position remains strong. As of December 31,
2005, the Company's cash and cash equivalents including restricted
cash and short-term investments were $2.1 billion ($2.1 billion at
September 30, 2005, and $2.6 billion at December 31, 2004). In
addition, the Company, including its operating subsidiaries, had
available borrowing capacity of $1.5 billion as at December 31,
2005. During the three months ended December 31, 2005, net cash
provided by operating activities was $1.1 billion, as compared to
$1.0 billion for the three months ended September 30, 2005. Capital
expenditure during the three months ended December 31, 2005, was
$426 million as compared with $305 million for the three months
ended September 30, 2005. Depreciation during the three months
ended December 31, 2005, was $259 million as compared with $215
million for the three months ended September 30, 2005 primarily due
to inclusion of Mittal Steel Kryviy Rih results for one month.
During the three months ended December 31, 2005, Mittal Steel paid
out interim dividends of $143 million. During the three months
ended December 31, 2005, gross debt increased by $4.5 billion,
primarily to finance the acquisition of Mittal Steel Kryviy Rih.
Cash and cash equivalents, short-term investments and restricted
cash increased by approximately $100 million. Net debt (which is
total debt less cash and cash equivalents, short term investments
and restricted cash) at the end of December 31, 2005, was $6.2
billion ($1.7 billion at September 30, 2005), as a result of the
various acquisitions, partially offset by free cash flow. During
the three months ended December 31, 2005, net working capital
(inventory plus accounts receivable plus prepaid expenses minus
accounts payable minus accrued expenses and other liabilities)
improved by $233 million. On February 14, 2006, the Company's board
of directors declared an interim dividend of US$ 0.125 per share
payable on March 15, 2006, and decided to propose to the general
meeting of shareholders to amend the dividend policy going forward
to a quarterly dividend of US$ 0.125 per share. On January 30,
2006, the Company entered into a EUR5 billion credit agreement with
Goldman Sachs, Citigroup and Societe Generale, among others, to
finance the cash portion of the offer for Arcelor along with
related transaction costs. Concurrently, the Company entered into a
EUR3 billion credit agreement with the same lenders to refinance a
pre-existing bridge facility, used to finance the acquisition of
Mittal Steel Kryviy Rih. On December 30, 2005, the Company signed a
five-year $800 million Committed Multicurrency Letter of Credit and
Guarantee Facility. The facility is to be used by the Company and
its subsidiaries for the issuance of LCs and financial guarantees.
On December 19, 2005, Mittal Steel Europe called the euro
denominated senior secured notes due February 2011, which were
bearing interest at 11.875%. The EUR70 million outstanding was
repaid on February 1, 2006 at 105.938% of par value. Penalties
arising from the early retirement of loans amounted to $11 million
(including $8 million for euro denominated senior secured notes)
was provided for in the three months ended December 31, 2005. On
November 22, 2005, the Company N.V. entered into an agreement with
the Indiana Finance Authority to issue Environmental Improvement
Revenue Refunding Bonds, Series 2005 in an amount of approximately
$51 million. Recent Development - On February 1, 2006, Mittal
Canada Inc., a Canadian subsidiary of Mittal Steel Company N.V.,
completed the acquisition of three Stelco Inc. subsidiaries. The
Norambar Inc. and Stelfil Ltee plants located in Quebec, and the
Stelwire Limited plant in Ontario were acquired at a cost of C$30
million. Mittal Canada also assumed C$28 million in debt as part of
the acquisition. - Mittal Steel Company N.V. has launched an offer
to the shareholders of Arcelor SA ("Arcelor") which will create the
world's first 100 million ton plus steel producer. The offer values
each Arcelor share at EUR28.21 which represents a 27% premium over
the closing price and all time high on Euronext Paris of Arcelor
shares as at 26 January 2006, a 31% premium over the volume
weighted average price in the preceding month, and a 55% premium
over the volume weighted average share price in the preceding 12
months. For further details refer to the Company's press release
issued on January 27, 2006, which can be located on the Company's
website. - On January 26, 2006, Mittal Steel Company N.V. signed a
MoU with the State of Senegal to explore the development and
production of iron ore from the Faleme group of iron ore deposits.
The Faleme region has approximately 700 million tonnes of iron ore
in South Eastern Senegal. - Mittal Steel Company N.V. completed the
acquisition of a 36.67% stake in Hunan Valin on September 28, 2005,
for a total consideration of US$338 million. On January 20, 2006,
as a result of publicly held outstanding convertible bonds being
converted into shares, the shareholdings of both Mittal Steel and
Valin Group in Hunan Valin were diluted to 29.49% and 30.29%
respectively. The remaining shares are traded on the Shenzhen Stock
Exchange. - Mittal Steel Company N.V. announced on December 12,
2005, that it had acquired an additional 41% stake in Mittal Steel
Zenica from the Kuwaiti Investment Agency for US$98 million, taking
the total interest at 92%. - Mittal Steel Company N.V. completed
its acquisition of 93.02% of Mittal Steel Kryviy Rih for a total
consideration of US $4.9 billion, on November 25, 2005. Outlook for
first quarter 2006 For the first quarter 2006, we expect shipments
to increase by approximately 10% due to the inclusion of Mittal
Steel Kryviy Rih for the full quarter, overall average selling
prices are expected to remain flat, and cost of sales are expected
to increase primarily due to the increase in natural gas cost. We
expect operating income to be higher as compared to the fourth
quarter of 2005. MITTAL STEEL COMPANY N.V. CONSOLIDATED FINANCIAL
& OTHER INFORMATION MITTAL STEEL COMPANY N.V. CONSOLIDATED
BALANCE SHEETS As of December 31, September 30, December 31, In
millions of US dollars 2005 2005 2004 (Unaudited) (Unaudited)
(Audited) ASSETS Current Assets Cash and cash equivalents $ 2,035 $
1,787 $ 2,495 Restricted cash 100 253 138 Short-term investments 14
10 1 Trade accounts receivable - net 2,287 2,572 2,006 Inventories
6,036 5,529 4,013 Prepaid expenses and other 1,040 850 666 current
assets Deferred tax assets - net 238 216 306 Total Current Assets
11,750 11,217 9,625 Property, plant and equipment - 15,539 10,913
7,562 net Investments in affiliates and 1,187 1,166 667 joint
ventures Deferred tax assets - net 895 791 855 Intangible assets
1,439 103 106 Other assets 380 438 338 Total Assets $31,190 $24,628
$19,153 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities
Payable to banks and current $ 252 $ 259 $ 341 portion of long-term
debt Trade accounts payable 2,504 2,003 1,899 Dividend payable - 70
1,650 Accrued expenses and other 2,661 3,095 2,307 current
liabilities Deferred tax liabilities - net 154 161 33 Total Current
Liabilities 5,571 5,588 6,230 Long-term debt net of current 8,056
3,534 1,639 portion Deferred tax liabilities - net 1,712 857 955
Deferred employee benefits 2,506 1,832 1,931 Other long-term
obligations 1,361 1,217 809 Total Liabilities 19,206 13,028 11,564
Minority Interest 1,834 1,760 1,743 Shareholders' Equity Common
shares 60 60 59 Treasury stock (111) (112) (123) Additional paid-in
capital 2,460 2,455 552 Retained earnings 7,887 7,312 4,739
Accumulated other comprehensive (146) 125 619 income/(loss) Total
Shareholders' Equity 10,150 9,840 5,846 Total Liabilities and
$31,190 $24,628 $19,153 Shareholders' Equity MITTAL STEEL COMPANY
N.V. CONSOLIDATED FINANCIAL & OTHER INFORMATION Quarter Ended
Year Ended In millions of December 31, September December
31,December 31, December US dollars, 2005 30, 2005 2004 2005 31,
2004 except shares, per share and other data
(Unaudited)(Unaudited)(Unaudited) (Unaudited) (Audited) STATEMENT
OF INCOME DATA Sales $7,054 $7,050 $6,177 $28,132 $22,197 Costs and
expenses: Cost of sales 5,642 5,816 4,017 21,495 14,694 (exclusive
of depreciation shown separately) Depreciation 259 215 141 829 553
Selling, 282 254 294 1,062 804 general and administrative expenses
6,183 6,285 4,452 23,386 16,051 Operating 871 765 1,725 4,746 6,146
income Operating 12% 11% 28% 17% 28% margin Other income 27 10 104
77 128 (expense) - net Income from 3 19 20 69 66 equity method
investments Financing costs: Interest (114) (79) (86) (339) (265)
(expense) Interest 23 29 36 110 78 income Net gain / 36 (13) (29)
40 (20) (loss) from foreign exchange (55) (63) (79) (189) (207)
Income before 846 731 1,770 4,703 6,133 taxes and minority interest
Income tax expense: Current 141 71 266 663 731 Deferred (49) 93
(264) 155 86 92 164 2 818 817 Income before 754 567 1,768 3,885
5,316 minority interest Minority (104) (89) (214) (520) (615)
interest Net income $650 $478 $1,554 $3,365 $4,701 Basic earnings
0.92 0.68 2.42 4.90 7.31 per common share Diluted 0.92 0.68 2.42
4.87 7.31 earnings per common share Weighted 704 704 643 687 643
average common shares outstanding (in millions) OTHER DATA Total
13,642 12,976 10,097 49,178 42,071 shipments of steel products
including inter-company shipments (thousands of short tons) MITTAL
STEEL COMPANY N.V. CONSOLIDATED STATEMENTS OF CASH FLOWS Quarter
Ended Year Ended In millions of December September December
December December US dollars 31, 2005 30, 2005 31, 2004 31, 2005
31, 2004 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
Operating activities: Net income $650 $478 $1,554 $3,365 $4,701
Adjustments required to reconcile net income to net cash provided
by operations: Depreciation 259 215 141 829 553 Net accretion (46)
(51) - (139) - of purchased intangibles Deferred - 13 (111) 17 (56)
employee benefit costs Net foreign (11) (7) 31 (30) 28 exchange
loss (gain) Deferred (49) 93 (264) 155 86 income tax Gain from - -
22 - 22 early extinguishment of debt Undistributed (15) (26) (42)
(65) (138) earnings from joint ventures Loss (gain) on (14) 1 (20)
(28) (19) sale or write-off of property plant & equipment
Minority 104 89 214 520 615 interest Other non cash (47) (35) (4)
(113) (8) operating activities Changes in operating assets and
liabilities, net of effects from acquisitions: Trade accounts 236
(104) 449 406 (386) receivable Short-term (1) 14 3 5 - investments
Inventories (351) 506 (564) 40 (1,374) Prepaid (33) 64 201 (197)
(160) expenses and other assets Trade accounts 641 (5) (93) 15 160
payable Accrued (260) (272) 230 (806) 587 expenses and other
liabilities Net cash 1,063 973 1,747 3,974 4,611 provided by
operating activities Investing activities: Purchase of (426) (305)
(376) (1,181) (898) property, plant and equipment Proceeds from 15
15 61 59 83 sale of assets and investments including affiliates and
joint ventures Acquisition of (4,891) (23) (12) (6,220) (19) net
assets of subsidiaries, net of cash acquired Investment in 15 (337)
12 (300) 34 affiliates and joint ventures Restricted 153 428 89 38
2 cash Other (4) (4) (8) (8) (3) investing activities Net cash used
(5,138) (226) (234) (7,612) (801) in investing activities Financing
activities: Proceeds from 12 322 91 1,678 2,258 payable to banks
Proceeds from 5,129 100 197 8,328 1,185 long-term debt Debt
issuance - - - (10) - cost Proceeds from - - 30 - 76 long-term debt
from an affiliate Payments of (10) (582) (362) (1,807) (2,738)
payable to banks Payments of (657) (759) (752) (2,740) (2,127)
long-term debt Payments of - - (175) - (175) long-term debt to an
affiliate Purchase of - - - - (54) treasury stock Sale of 3 - (1) 9
9 treasury stock for stock option exercises Dividends paid (143)
(148) (351) (2,092) (763) Others (1) 2 - (17) - Net cash 4,333
(1,065) (1,323) 3,349 (2,329) provided by (used in) financing
activities Net increase 258 (318) 190 (289) 1,481 (decrease) in
cash and cash equivalents Effect of (10) 56 207 (171) 254 exchange
rate changes on cash Cash and cash equivalent: At the 1,787 2,049
2,098 2,495 760 beginning of the period At the end of $2,035 $1,787
$2,495 $2,035 $2,495 the period Mittal Steel Company N.V. Appendix
1 - Quarter 4 2005 Shipments by country (Thousands of short tons)
Quarter Ended Year Ended December 31, September 30, December 31,
2005 2005 2005 (Unaudited) (Unaudited) (Unaudited) Americaa United
States of America 4,838 4,322 14,299 Mexico - Lazaro Cardenas 799
976 3,908 Canada 371 340 1,461 Trinidad - Point Lisas 194 190 796
TOTAL AMERICAS 6,202 5,828 20,464 Europe West Europe - Germany and
France 753 735 3,255 Poland 1,252 1,158 4,894 Romania 1,210 1,192
5,164 Czech Republic - Ostrava 755 691 2,692 Ukraine - Kryviy Rih
493 - 493 Others 143 188 715 TOTAL EUROPE 4,606 3,964 17,213 Asia
and Africa Kazakhstan - Temirtau 936 1,139 3,672 South Africa 1,675
1,801 6,866 Algeria - Annaba 223 244 963 TOTAL ASIA AND AFRICA
2,834 3,184 11,501 MITTAL STEEL COMPANY 13,642 12,976 49,178
Figures for total shipments of steel products (including
inter-company shipments) Mittal Steel Company N.V. Appendix 2-
Quarter 4 2005 Figures in millions US dollars unless otherwise
shown Americas Europe Asia & Africa Elimination Mittal Steel
Financial Information Sales 3,695 1,957 1,836 (434) 7,054 Cost of
sales (exclusive of depreciation) 3,264 1,603 1,235 (460) 5,642
Gross profit (before deducting depreciation) 431 354 601 26 1,412
Gross margin (as percentage of sales) 12% 18% 33% - 20% Selling,
general and administrative expenses 91 132 74 (15) 282 Operating
income * 225 173 477 (4) 871 Operating margin (as percentage of
sales) 6% 9% 26% 12% EBITDA (PBT + Interest + depreciation) 373 321
593 (91) 1,196 EBITDA margin ( as percentage of sales) 10% 16% 32%
17% Depreciation 115 87 57 - 259 Capex (133) (121) (172) (426)
Operational Information Liquid Steel Production ('000 MT) 6,207
4,872 3,192 14,271 Liquid Steel Production ('000 ST) 6,842 5,371
3,518 15,731 Shipments ('000 MT) 5,627 4,178 2,571 12,376 Shipments
('000 ST) 6,202 4,606 2,834 13,642 Employees (000) 24 129 74 227 *
The merger of ISG and Ispat Inland to create Mittal Steel USA on
December 31, 2005, negatively affected operating income for the
three months ended December 31, 2005, by US$ 52 million due to the
conformation of accounting policies of the merged entities
--------------------------------- [1] Total steel shipments include
inter-company shipments. DATASOURCE: Mittal Steel Company N.V.
CONTACT: Mittal Steel Company N.V.: Julien Onillon, Director,
Investor Relations, +44-(0)20-7543-1136. Thomas A. McCue, Director,
North American Investor Relations (and Treasurer Mittal Steel USA),
+1-219-399-5166
Copyright