Ispat International N.V. Reports Third Quarter 2003 Results
ROTTERDAM, Netherlands, Nov. 6 /PRNewswire-FirstCall/ -- Ispat
International N.V., , today reported a net loss of $10.0 million or
negative 8 cents per share for the third quarter of 2003 as
compared to net income of $26 million or 21 cents per share for the
third quarter of 2002. Consolidated sales(1) and operating loss for
the third quarter were $1.3 billion and $4.0 million, respectively,
as compared to $1.3 billion and an operating income of $92 million,
respectively, for the third quarter of 2002. Total steel shipments
decreased by 8% to 3.6 million tons, as compared to 3.9 million
tons shipped in the same period last year. Two events significantly
affected this quarter's operating income. Firstly, the reline of
Blast Furnace No 7 at Ispat Inland resulted in additional costs for
purchasing slabs to service customer orders during the reline
period. Secondly, the strike at Ispat Mexicana in August resulted
in 11 days of lost slab production. Debt at the end of third
quarter was $2.3 billion. Capital expenditure for the third quarter
of 2003 totaled $79 million. At September 30, 2003 the Company's
consolidated cash, cash equivalents and short-term liquid
investments totaled $71 million. The Company also has approximately
$276 million available to it under various undrawn lines of credit
and bank credit arrangements(2). Ispat International N.V. is one of
the world's largest and most global steel producers, with major
steelmaking operations in the United States, Canada, Mexico,
Trinidad, Germany and France. The Company produces a broad range of
flat and long products sold mainly in the North American Free Trade
Agreement (NAFTA) participating countries and the European Union
(EU) countries. Ispat International is a member of the LNM Group.
This news release contains forward-looking statements that involve
a number of risks and uncertainties. These statements are based on
current expectations whereas actual results may differ. Among the
factors that could cause actual results to differ are the risk
factors listed in the Company's most recent SEC filings. (1)
Financial Accounting Standards Board Emerging Issues Task Force
("EITF") reached final consensus on EITF Issue No. 00-10,
accordingly, sales include freight and handling costs and fees. (2)
Corresponding exercisable/available limits are lower, which are
based on the level of inventory/receivable CONSOLIDATED BALANCE
SHEETS UNDER U.S. GAAP As at September 30, December 31, In millions
of U.S. Dollars 2003 2002 (Unaudited) (Audited) ASSETS Current
Assets Cash and cash equivalents, including short term investments
71 77 Trade accounts receivable - net 493 529 Inventories 851 873
Prepaid expenses and other 86 95 Deferred tax assets 40 38 Total
Current Assets 1,541 1,612 Property, plant and equipment - net
3,087 3,035 Investments in affiliates and Joint Ventures 253 257
Deferred tax assets 471 438 Intangible pension assets 85 84 Other
assets 86 86 Total Assets 5,523 5,512 LIABILITIES AND SHAREHOLDERS'
EQUITY Current Liabilities Payable to banks and current portion of
long-term debt 391 262 Trade accounts payable 557 607 Accrued
expenses and other current liabilities 460 377 Deferred tax
liabilities 31 28 Total Current Liabilities 1,439 1,274 Long term
debt including affiliates 1,901 2,022 Deferred tax liabilities 76
69 Deferred employee benefits 1,760 1,881 Other long term
obligations 137 138 Total Liabilities 5,313 5,384 Shareholders'
equity Common shares 7 7 Additional paid-up capital 476 484
Retained earnings 189 141 Cumulative other comprehensive income
(462) (504) Total Shareholders' equity 210 128 Total Liabilities
and Shareholders' Equity 5,523 5,512 CONSOLIDATED UNAUDITED
FINANCIAL & OTHER INFORMATION AS PER U.S. GAAP For the Third
Quarter For the Nine Ended Months Ended September 30, September 30,
In millions of U.S. Dollars, 2003 2002 2003 2002 except share, per
share and operational data Statement of Income Data Sales $1,294
$1,262 $4,032 $3,564 Costs and expenses: Cost of sales (exclusive
of depreciation shown separately) 1,215 1,086 3,645 3,209
Depreciation 45 45 136 132 Selling, general and administrative
expenses 38 39 122 110 1,298 1,170 3,903 3,451 Operating income
(loss) (4) 92 129 113 Operating margin -0.3% 7.3% 3.2% 3.2% Other
income (expense) - net 12 4 32 37 Financing costs: Interest
(expense) (42) (62) (127) (164) Interest income 4 1 11 3 Net gain
(loss) from foreign exchange 5 2 3 18 (33) (59) (113) (143) Income
(loss) before taxes (25) 37 48 7 Income tax expense (benefit):
Current 2 2 11 15 Deferred (17) 9 (20) (6) (15) 11 (9) 9 Net income
(loss) before extraordinary income (10) 26 57 (2) Cumulative effect
of change in accounting principle -- -- (2) -- Net income (loss)
(10) 26 55 (2) Basic and diluted earnings per common share (0.08)
0.21 0.44 (0.02) Weighted average common shares outstanding (in
millions) 122 123 122 123 Total shipments of steel products,
including inter-company shipments (thousands of tons) 3,582 3,907
11,374 11,293 CONSOLIDATED UNAUDITED STATEMENTS OF CASH FLOWS AS
PER U.S. GAAP For the Third Quarter For the Nine Ended Months Ended
September 30, September 30, In millions of U.S. Dollars 2003 2002
2003 2002 Operating activities: Net income $(10) $26 $55 $(2)
Adjustments required to reconcile net income to net cash provided
from operations: Depreciation 45 45 136 132 Deferred employee
benefit costs (157) -- (145) (53) Net foreign exchange loss (gain)
(4) (3) (3) (18) Deferred income tax (18) 9 (20) (8) Undistributed
earnings from joint ventures (6) (9) (25) (1) Other 2 2 3 (5)
Changes in operating assets and liabilities, net of effects from
purchases of subsidiaries: Trade accounts receivable 58 (24) 51
(77) Inventories 65 (51) 63 20 Prepaid expenses and other 1 5 (30)
33 Trade accounts payable (12) (7) (76) 18 Accrued expenses and
other liabilities 76 14 104 65 Net cash provided (used) by
operating activities 40 7 113 104 Investing activities: Purchase of
property, plant and equipment (79) (37) (135) (69) Proceeds from
sale of assets and investments including affiliates and joint
ventures 2 9 19 14 Investments in affiliates and joint ventures 7 4
22 -- Other -- -- -- 2 Net cash provided (used) by investing
activities (70) (24) (94) (53) Financing activities: Proceeds from
payable to banks 1,087 684 2,758 1,659 Proceeds from long-term debt
including affiliates 28 1 70 118 Payments of payable to banks
(1,036) (629) (2,672) (1,628) Payments of long-term debt (45) (17)
(176) (185) Purchase of treasury stock -- -- (9) -- Sale of
treasury stock -- 1 -- 3 Net cash provided (used) by financing
activities 34 40 (29) (33) Net increase (decrease) in cash and cash
equivalents 4 23 (10) 18 Effect of exchange rate changes on cash 2
-- 4 8 Cash and cash equivalent: At the beginning of the period 65
88 77 85 At the end of the period 71 111 71 111 Analysis of Results
of Operations and Financial Condition This is not Management
Discussion and Analysis (MD&A). The MD&A, as an annual
document is filed as part of the Company's annual report (Form
20-F) under Item 5 - Operating and Financial Review and Prospects.
The summary consolidated financial and other information, including
accounts of Ispat International N.V. ("Ispat International") and
its consolidating subsidiaries are prepared in accordance with U.S.
GAAP. All material inter-company balances and transactions have
been eliminated. Quantitative information on total shipments of
steel products includes inter- company shipments. All references to
'Sales' include freight and handling costs and fees as per EITF
Issue No. 00-10. EITF 00-10 requires that all shipping and handling
fees and costs billed to customers are included in sales and in
cost of sales. Accordingly, this accounting treatment does not have
any impact on the earnings of Ispat International. All references
to 'Net Sales' exclude freight and handling costs and fees.
Management uses "Net Sales" to manage the business which is based
on net realizations from sales transactions. Management believes
that "Net Sales" reflects a true underlying commercial reality of
the sales performance. All analysis presented in this earnings
release is prepared using "Net Sales". The term 'ton' as discussed
herein refers to short ton and the term 'tonne' used herein refers
to metric tonne. All references to iron ore pellets, direct reduced
iron ('DRI') and scrap are in tonnes, and all references to steel
products are in tons. The term 'steel products' as used herein
refers to semi-finished and finished steel products and excludes
DRI. All references to 'Ispat International' are to 'Ispat
International N.V.'; to 'Ispat Inland' are to Ispat Inland Inc.; to
'Imexsa' or 'Ispat Mexicana' are to Ispat Mexicana, S.A. de C.V.;
to 'Ispat Sidbec' are to Ispat Sidbec Inc.; to 'Caribbean Ispat'
are to Caribbean Ispat Limited; to 'Ispat Europe Group' are
collectively to Ispat Hamburger Stahlwerke GmbH ('IHSW'), Ispat
Stahlwerk Ruhrort GmbH ('ISRG'), Ispat Walzdraht Hochfeld GmbH
('IWHG'), Ispat Unimetal S.A., Trefileurope S.A. and SMR SNC. The
Company has made, and may continue to make, various forward-looking
statements with respect to its financial position, business
strategy, projected costs, projected savings, and plans and
objectives of management. Such forward-looking statements are
identified by the use of the forward- looking words or phrases such
as 'anticipates', 'intends', 'expects', 'plans', 'believes',
'estimates', or words or phrases of similar import. These forward-
looking statements are subject to numerous assumptions, risks and
uncertainties, and the statements looking forward beyond 2003 are
subject to greater uncertainty because of the increased likelihood
of changes in underlying factors and assumptions. Actual results
could differ materially from those anticipated in the
forward-looking statements. Third Quarter 2003 Compared with Third
Quarter 2002 Results of Operations Revenue Sales increased by 3% to
$1,294 million in the third quarter of 2003. These Sales numbers
are based on application of EITF Issue No. 00-10 (issued by the
FASB Emerging Issues Task Force in September 2000 and adopted by
the Company in 2002) and include all shipping and handling fees and
costs billed to customers. Prior period numbers have been recast to
reflect the same. The application of EITF Issue No. 00-10 does not
affect earnings, as it only involves inclusion of shipping and
handling fees in sales and cost of sales. Total steel shipments
decreased by 8% to 3.6 million tons from 3.9 million tons. However,
net sales increased by 3% during the same period from $1,207
million to $1,237 million primarily due to a 3% improvement in
average prices. The following table summarizes the stand-alone
numbers of net sales for our principal operating subsidiaries.
Subsidiary Net Sales(3) Changes in Q3 2003 Q3 2002 Net Sales
Shipment Selling Price $ Million $ Million % % % Ispat Inland 523
577 (9) (8) (2) Ispat Mexicana 181 205 (12) (14) 0 Ispat Sidbec 130
140 (7) (3) (16)* Caribbean Ispat -- Steel 61 48 27 23 2 Caribbean
Ispat -- DRI 35 37 (5) (18) 12 Ispat Europe Group 308 287 7 (12) 5*
* For Ispat Sidbec and Ispat Europe Group change in Net Selling
Price is based on C$ and Euro prices respectively. (3) Net Sales
numbers are standalone numbers for certain operating subsidiaries
and include inter-company shipments. Net sales at Ispat Inland
decreased by $54 million or 9%. This was mainly due to 8% decline
in shipments during the third quarter of 2003. Shipments were
largely affected by the reline of Blast Furnace No.7 which began in
July 2003. In addition, Ispat Inland reduced sales of hot rolled
products due to lower selling prices. This adverse impact was
partly offset by improved mix through higher sales of cold rolled
products. Ispat Mexicana's net sales were lower by 12% or $24
million mainly due to production losses caused by a general strike
from August 1 to 11. Slab production lost as a result of the strike
was 155,000 tons. Net sales at Ispat Sidbec were lower by 7% mainly
due to a combination of a 6% decline in average prices in US$ terms
and a fall in shipments by 3%. Generally, sales were severely
affected by the overall softer market conditions and a 12%
appreciation in the Canadian $. Further, wire rod shipments to the
US were lower due to anti-dumping duties and countervailing duties.
Ispat Sidbec was partly able to offset the decline in finished
product shipments by higher sales of slab and billets. In the third
quarter of 2003, Caribbean Ispat increased net sales by 12% to $96
million largely due to higher shipments of billets. Caribbean
Ispat's average prices of billets improved by 15% while billet
shipments increased by 148%. Billets sales were helped by strong
overseas demand, buoyed by the general tightening of the market for
metallics. Wire rod prices and shipments increased by an average of
3%. DRI shipments decreased by 5% and average prices improved by
12%. Decline in shipments of DRI was partly due to timing and
shipping issues. At Ispat Europe, net sales in Euros declined by 6%
in spite of a 5% price increase and shipments declined by 12%. Net
sales were lower due to seasonally low levels of activity,
continued softening in the market for all products and price
resistance in the downstream products. However, due to a 14%
appreciation of the Euro, the net sales in US$ terms was higher by
7%. Costs Cost of sales increased by 12% to $1,215 million even
though shipments were lower by 8%. Cost per ton increased by 13%
due to increases in the price of metallics, electricity and natural
gas. Ispat Inland's cost of sales increased by 4% and cost per ton
increased by 12%. This was primarily due to lower production caused
by the reline of Blast Furnace No. 7 and the resultant higher
material costs. Ispat Mexicana's cost of sales reduced by 4% due to
lower shipments. However, cost per ton increased by 13% due to a
12% increase in electricity prices, an increase in the cost of
natural gas by 7% and lower production due to strike. Cost of sales
of Ispat Sidbec increased by 10%. Cost per ton of Ispat Sidbec
increased by 11% due to natural gas price increases of 44% and
increase in metallics costs. In addition, a new wage and employee
benefit agreement came into effect in February 2003 which also
increased costs. Lastly, strengthening of the Canadian $ by around
12% increased the cost per ton is US$ terms. Caribbean Ispat's cost
of goods sold increased by 19%. Cost per ton for DRI increased by
13% due to higher iron ore prices. Cost per ton for steel increased
by 5% due to higher energy costs. Ispat Europe's cost of sales
increased by 9% while cost per ton increased by 23% primarily due
to a 14% appreciation in the Euro, seasonally lower production and
higher prices for scrap, DRI and energy costs. Gross profit Gross
profit is Net Sales less Cost of Sales (excluding depreciation).
Management believes that gross profit provides useful management
information as it is a measure of profit margins over the cost of
sales. Gross profit declined to $79 million from $176 million in
the third quarter of 2002. Overall price realizations remained flat
but a combination of lower shipments, higher costs and reline of
the blast furnace at Ispat Inland reduced the overall gross margin
to 6.4% compared to third quarter 2002 of 14.5%. Comparative
numbers of gross margin at the principal operating subsidiaries
were: Subsidiary Gross Margin (%) 3Q 2003 3Q 2002 Ispat Inland
(0.5) 12.5 Ispat Mexicana 9.0 18.4 Ispat Sidbec 3.3 17.9 Caribbean
Ispat 20.2 20.1 Ispat Europe Group 6.9 8.7 Operating income /
(loss) The Company had an operating loss of $4 million compared to
an operating income of $92 million in the same quarter last year.
Decline in gross profits by 55% was largely responsible for the
severe impact on operating income. Comparative numbers of Operating
Income and Operating Margin at the principal operating subsidiaries
were: Subsidiary Operating Income / (Loss) Operating Margin $
Million (%) 2003 2002 2003 2002 Ispat Inland (34) 40 (6.5) 6.9
Ispat Mexicana 6 28 3.1 13.5 Ispat Sidbec (5) 17 (3.6) 11.9
Caribbean Ispat 13 11 13.5 12.3 Ispat Europe Group 0 6 0.1 2.1
Financing costs Interest expense has reduced by 32% compared to
third quarter of 2002 mainly due to a reduction in interest rates.
In the third quarter of 2002, interest expense included debt
restructuring costs of $8 million for Ispat Mexicana which are
absent this year. Income tax The Company benefited from a deferred
tax credit of $17 million compared to a deferred tax charge of $9
million in 2002. The Company's current tax expense remained at
third quarter 2002 levels at $2 million. Other income / (expense)
Ispat Inland recognized gain of $11 million on account of a
settlement reached with Ryerson Tull in relation to environmental
indemnities. Net income There was a net loss of $10 million in the
third quarter of 2003 compared to a net income of $26 million in
the third quarter of 2002 due to the reasons discussed above.
Liquidity and Capital Resources During the third quarter working
capital improved by $99 million due to lower accounts receivable
and lower inventories. Capital expenditure during the third quarter
was $79 million. $53 million of the total capital expenditure in
the quarter relates to the reline of Blast Furnace No. 7 at Ispat
Inland. As at September 30, 2003 the Company's cash and cash
equivalents were $71 million, (December 31, 2002: $77 million). In
addition, the Company's operating subsidiaries had available
borrowing capacity under their various credit lines, including
receivable factoring and securitization facilities, of $276 million
(December 31, 2002: $308 million). The following table summarizes
working capital facilities at the main operating units: Subsidiary
Limit Utilization Availability(4) ($ Millions) Sep Dec Sep Dec Sep
2003 Dec 2002 Ispat Inland 2003 2002 2003 2002 370 294 294 234 76
60 Ispat Sidbec 116 111 55 13 61 98 Caribbean Ispat 71 57 66 57 6
-- Ispat Europe 70 66 57 41 13 25 In addition to the credit
facilities listed above, certain of the Company's European
subsidiaries were parties to receivable factoring and
securitization facilities as per the following details: Subsidiary
Limit Utilization Availability(4) ($ Millions) Sep Dec Sep Dec Sep
2003 Dec 2002 2003 2002 2003 2002 Ispat Europe - Receivables
factoring 245 257 134 132 111 125 (4) Corresponding exercisable
limits are lower, which are based on the level of
inventory/receivable. The Company's total debt -- both long and
short term, was $2,292 million. The corresponding amount as at
December 31, 2002 was $2,284 million. The following table gives
details: Subsidiary Long Term Payable Current portion Total Debt
Debt (LTD) to Bank of LTD ($ Millions) Sep Dec Sep Dec Sep Dec Sep
Dec 2003 2002 2003 2002 2003 2002 2003 2002 Ispat Inland 1,136
1,086 10 9 8 7 1,154 1,102 Ispat Mexicana 397 428 -- -- 27 15 424
443 Ispat Sidbec 118 236 55 13 119 54 292 303 Caribbean Ispat 89
106 66 57 30 29 185 192 Ispat Europe 128 131 57 41 1 4 186 176
Outlook for the Fourth Quarter 2003 The U.S. markets are showing
some signs of recovery with flat product prices, particularly hot
rolled, firming up in recent weeks. Demand continues to be sluggish
but certain specific industry segments such as home appliances and
residential construction are strong. Ispat Inland should benefit
from these trends, as well as benefits from the reline to its Blast
Furnace No. 7 as we ramp up production gradually. Ispat Europe has
announced price increases and expects some increase in shipments.
However, continued pressure on input prices may offset such gains.
Slab demand and prices are firming up. Ispat Mexicana's order book
for the fourth quarter is full. Caribbean Ispat's shipments are
expected to be around the third quarter levels. We expect higher
wire rod shipments and lower billet shipments. Ispat Sidbec
continues to be adversely affected by the appreciating Canadian $.
Costs of key inputs such as scrap, coking coal and iron ore
continue to rise on the back of strong demand. Ocean freight is
also rising due to shortage of ships and continuing strong demand
in Asia. Overall we expect results in the fourth quarter to be
slightly better than the third quarter. We may have to book certain
non-cash write downs in respect of minimum pension liability due to
a change in discount rates used to value pension obligations. Such
non-cash charge will not affect net income, but will negatively
impact Shareholders' Equity in the Balance Sheet. The final impact
will be determined through an actuarial valuation in the fourth
quarter. First Nine Months of 2003 Compared to First Nine Months of
2002 Results of Operations Revenue Sales increased by 13% to $4,032
million in 2003 while total steel shipments increased by 1% to 11.4
million tons. Net Sales also went up during the same period from
$3.4 billion to $3.9 billion, an increase of 14%. Increase in net
sales was mainly due to a 9% increase in average prices in US$
terms. The following table gives a summary of key sales numbers:
Subsidiary Net Sales(5) Changes in 2003 2002 Net Sales Shipments
Net Sales Price $ Million $ Million % % % Ispat Inland 1,602 1,657
(3) (8) 6 Ispat Mexicana 617 459 35 22 14 Ispat Sidbec 411 392 5 1
(13)* Caribbean Ispat - Steel 175 128 36 22 12 Caribbean Ispat -
DRI 105 108 (2) (12) 11 Ispat Europe Group 989 826 20 (7) 5* * For
Ispat Sidbec and Ispat Europe Group change in Net Selling Price is
based on C$ and Euro prices respectively. (5) Net Sales numbers are
standalone numbers for certain operating subsidiaries and include
inter-company shipments. Costs Cost of sales increased by 14% in
2003. The increase is largely due to higher price of scrap,
electricity, iron ore and natural gas. Selling general and
administrative expenses increased by 11% mainly due to the
translation impact arising from the weaker US$. In local currency,
selling general and administrative expenses have remained at 2002
levels. Gross profit Gross Profit (Sales less Cost of Sales,
exclusive of depreciation) increased by 9% to $387 million due to
increase in selling prices. Ispat Mexicana and Caribbean Ispat were
the largest contributors of this increase due to price increases of
over 12%. The Gross Margin (Gross Profit as a percentage of Net
Sales) declined from 10.4% to 10.0%, mainly due to a significant
decline at Ispat Inland and Ispat Sidbec. The comparative numbers
of Gross Margin at the Company's operating subsidiaries were as
follows: Subsidiary Gross Margin (%) 2003 2002 Ispat Inland 5.6 8.8
Ispat Mexicana 14.9 13.2 Ispat Sidbec 5.5 12.7 Caribbean Ispat 20.8
13.3 Ispat Europe Group 9.6 9.9 Operating income Operating income
rose by 14% during the first nine months of 2003 primarily due to
improved gross profits in the first half of 2003. The Operating
Margin (Operating Income as a percentage of Net Sales) stayed at
2002 levels. Comparative numbers of Operating Income and Operating
Margin at the Company's operating subsidiaries were as follows:
Subsidiary Operating Income/(Loss) Operating Margin $ Million (%)
2003 2002 2003 2002 Ispat Inland (4) 49 0.2 2.9 Ispat Mexicana 62
34 10.0 7.4 Ispat Sidbec (4) 26 (0.9) 6.5 Caribbean Ispat 40 12
14.1 5.1 Ispat Europe Group 26 23 2.7 2.8 Other income / (expense)
During the first quarter of 2003, the Company purchased $22 million
($21 million in first quarter of 2002) of its own bonds at
discounts from face value. As a result of these purchases, the
Company recognized a gain of $13 million ($19 million net of tax in
first half of 2002) in other income. In accordance with adoption of
Statement of Financial Accounting Standard 145: Rescission of FASB
Statements 4, 44, and 64, Amendment of FASB Statement No. 13, and
Technical Corrections ("SFAS 145") by the Company as of January 1,
2003, gain or loss on extinguishments of debt that was previously
classified as an extraordinary item in prior periods was
reclassified and included within "other (income) expense, net" on
the Company's income statement. Ispat Inland recognized a gain of
$11 million on account of a settlement reached with Ryerson Tull in
relation to environmental indemnities. Effect of change in
accounting principle The Company adopted the provisions of
Statement of Financial Accounting Standards 143: Accounting for
asset retirement obligations ("SFAS 143") from January 1, 2003.
Based on analysis the Company has performed, it has been determined
that the only asset for which an asset retirement obligation must
be recorded is the Company's Minorca Mine, a subsidiary of Ispat
Inland. The impact of adopting SFAS 143 on January 1, 2003 is an
increase in assets and liabilities of $4 million and $6 million,
respectively. A post-tax charge of $2 million is reflected on the
Consolidated Statement of Income as a Cumulative Effect of change
in Accounting Principle. Financing Costs Net interest expense
(interest expenses less interest income) was 23% lower at $127
million. Interest expense reduced due to lower average borrowings
and lower interest rates which reduced borrowing costs. Further, in
2002, interest expenses include $12 million for debt restructuring
expenses for Ispat Mexicana which are absent in 2003. Income Tax
The Company recorded a current tax expense of $11 million ($16
million in 2002) in 2003 primarily due to inclusion of certain tax
payments at Ispat Mexicana arising as a result of the 1999 Tax
Reforms of the Mexican Tax Code's Consolidation Regime. There was
deferred tax benefit of $20 million in the first nine months of
2003 (benefit of $17 million in the first nine months of 2002). Net
Income The Company made a net income of $55 million in the first
nine months of 2003 compared to a Net Loss of $2 million in the
first nine months of 2002 due to the reasons discussed above.
DATASOURCE: Ispat International N.V. CONTACT: T.N. Ramaswamy,
Director, Finance of Ispat International N.V., +44-20-7543-1174;
Investor Relations: John McInerney, +1-201-499-3535, or Shoshana
Dubey, +1-201-499-3572, both of Citigate Financial Intelligence for
Ispat Web site: http://www.ispat.com/
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