FULL YEAR AND FOURTH QUARTER 2010 RESULTS

2/8/2011, 7:00 AM (Source: GlobeNewswire)

Aperam+0.43%

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Luxembourg, February 8, 2011 - Aperam (referred to as "Aperam" or the "Company")
(Amsterdam, Luxembourg, Paris: (APAM) and NYRS: (APEMY)) today announced
results[1] for the three and twelve month periods ending December 31, 2010.

Highlights:

* Health and Safety frequency rate[2] of 2.1x in 2010 (1.8x in 2009) and 1.0x
in Q4 2010
* Shipments of 1,741 thousand tonnes in 2010 (1,447 thousand tonnes in 2009)
and 366 thousand tonnes in Q4 2010
* EBITDA of USD 410 million in 2010 (USD 226 million in 2009) and of USD 22
million in Q4 2010
* Pro forma earnings per share of USD 1.64 in 2010 (loss per share of USD
1.54 in 2009)
* Pro forma cash flow from operations of USD 97 million in 2010 and USD 137
million in Q4 2010
* Pro forma net debt of USD 851 million at December 31, 2010 represented a
gearing of 22% compared to USD 953 million at September 30, 2010
* Aperam launched an initiative, known as the "Leadership Journey" to target
management gains and profit enhancement of USD 250 million over the next two
years

Prospects:

* Volume and pricing are expected to improve in Q1 2011 compared to Q4 2010
resulting in a strong increase in EBITDA and working capital requirements.
Net debt is expected to increase.
* Approximately USD 40 to USD 50 million of non-recurring charges expected in
Q1 2011 as part of the implementation of the Leadership Journey

Commenting, Mr. Bernard Fontana, CEO of Aperam, said:
"Following the successful spin-off of Aperam from ArcelorMittal, we are pleased
to report our first financial results as a stand-alone company.  Despite
weakness at year end, we experienced improvement in the financial results of
2010 compared to 2009.  Since the beginning of 2011, the market has shown signs
of improvement, but pricing levels are expected to remain moderate throughout
2011 due to overcapacity in the industry.  In an effort to enhance
competitiveness, the Company has initiated the Leadership Journey, aimed at
significantly increasing our level of profitability."

Financial highlights (on the basis of IFRS):

+-------------------------+------------+------+------+-+-----------+-----+-----+
|(USDm) unless otherwise |PF[3] 12M 10|12M 10|12M 09| |PF[3] Q4 10|Q4 10|Q3 10|
|shown | | | | | | | |
+-------------------------+------------+------+------+-+-----------+-----+-----+
|Sales | 5,604| 5,604| 4,235| | 1,434 |1,434|1,372|
+-------------------------+------------+------+------+-+-----------+-----+-----+
|EBITDA | 410 | 410| 226| | 22 | 22| 66|
+-------------------------+------------+------+------+-+-----------+-----+-----+
|Operating income / (loss)| 91 | 93| (207)| | (77)| (77)| (6)|
+-------------------------+------------+------+------+-+-----------+-----+-----+
|Net income / (loss) | 128 | 104| (150)| | 10 | 2| (12)|
+-------------------------+------------+------+------+-+-----------+-----+-----+
|  |  |  |  | |  |  |  |
+-------------------------+------------+------+------+-+-----------+-----+-----+
|Steel shipments (000t)[4]| 1,741 | 1,741| 1,447| | 366 | 366| 460|
+-------------------------+------------+------+------+-+-----------+-----+-----+
|EBITDA/tonne (USD) | 235 | 235| 156| | 60 | 60| 143|
+-------------------------+------------+------+------+-+-----------+-----+-----+
|Basic earnings per share | | | | | | | |
|(USD) | 1.64 | N/A| N/A| | 0.13 | N/A| N/A|
+-------------------------+------------+------+------+-+-----------+-----+-----+



Health & Safety results analysis

Health and safety performance, based on own personnel figures and contractors
lost time injury frequency rate, improved from 2.2 for the three months ended
September 30, 2010 to 1.0 for the three months ended December 31, 2010.


Pro forma financial results analysis

Sales in the fourth quarter increased by 5% to USD 1,434 million compared to USD
1,372 million in the third quarter.  Shipments in the fourth quarter decreased
by 94 thousand tonnes to 366 thousand tons compared to 460 thousand tonnes in
the third quarter.  Lower steel shipments were offset by higher average steel
selling prices resulting in particular from a rise in nickel prices.

EBITDA was USD 22 million in the fourth quarter compared to EBITDA in the third
quarter of USD 66 million.  This decline was primarily due to the decline of
volumes and a reduction in the average base price.

Depreciation expense remained flat in the fourth quarter at USD 75 million
versus USD 72 million in the previous quarter.  Impairment charges in the fourth
quarter of 2010 were USD 24 million.  These charges primarily relate to the
"Leadership Journey" announced on December 16, 2010 and are provisions for the
suspension of the traditional cold rolling lines in Isbergues.  There were no
impairment charges in the previous quarter.

Aperam had an operating loss in the fourth quarter of USD 77 million compared to
an operating loss of USD 6 million during the previous quarter.

Net interest income (including interest expense and interest income) in the
fourth quarter was USD 67 million.  Included in net interest income is a gain of
USD 120 million (USD 106 million net of taxes) relating to the exchange of
217,837,295 Acos Villares shares for 9,076,554 Gerdau shares.  Gerdau shares are
not considered as strategic by the Company.  Net interest income  includes the
impact of foreign exchange primarily on monetary assets held in different
currencies, the mark-to-market of derivative instruments and USD 27 million of
financing costs.

Aperam recorded an income tax benefit of USD 20 million in the fourth quarter.
The Company also recorded a net income of USD 10 million in the fourth
quarter.

Cash flows from operations in the fourth quarter were USD 137 million.  Working
capital inflows during the fourth quarter represented USD 161 million.  CAPEX in
the fourth quarter increased to USD 40 million.

Shareholder equity at December 31, 2010 was USD 3,917 million and net financial
debt for the same period was USD 851 million.  Gross financial debt as of
December 31, 2010 was USD 1,079 million including cash & cash equivalents of USD
228 million.


Operating segment results analysis

Stainless & Electrical Steel

The Stainless & Electrical Steel segment had sales of USD 1,113 million in the
fourth quarter of 2010 compared to USD 1,058 million in the third quarter.
Shipments during the fourth quarter were 343 thousand tonnes (157 thousand
tonnes in South America and 186 thousand tonnes in Europe).  This is a decrease
of 84 thousand tonnes compared to the previous quarter's shipments of 427
thousand tonnes (164 thousand tonnes in South America and 263 million tonnes in
Europe).  The decrease in volumes is primarily driven by the seasonal slowdown
that traditionally takes place in the fourth quarter in both Europe and South
America.  Lower shipments were partially offset by a higher average selling
price, primarily as a result of higher nickel prices.

The segment had EBITDA of USD 26 million in the fourth quarter compared to USD
48 million in the third quarter.  This decrease reflects a decline in both
shipments and base prices which is partially offset by profit of USD 18 million
relating to increased sales to the Services & Solutions segment.  This profit
has been eliminated at the group level.  EBITDA from South America dropped from
USD 62 million in the third quarter to USD 17 million in the fourth quarter.
EBITDA from Europe saw an improvement during the quarter, increasing from a loss
of USD 14 million in the third quarter to a profit of USD 9 million in the
fourth quarter.

The Stainless & Electrical Steel segment had an operating loss of USD 62 million
during the fourth quarter. Depreciation expense in the fourth quarter was USD
64 million.  Impairment charges for the fourth quarter were USD 24 million.

Services & Solutions

The Services & Solutions segment had relatively flat sales at USD 566 million in
the fourth quarter of 2010 compared to USD 576 million in the third quarter.  In
the fourth quarter, shipments were 147 thousand tonnes compared to 159 thousand
tonnes in the previous quarter as the destocking that began in the third quarter
continued in the fourth quarter.  Overall, the average selling price for the
fourth quarter was stable compared to the third quarter.

The segment achieved EBITDA in the fourth quarter of USD 3 million compared to
EBITDA of USD 12 million in the third quarter.

Depreciation expense in the fourth quarter was USD 8 million.

The Services & Solutions segment had an operating loss of USD 5 million in the
fourth quarter of 2010 compared to operating income of USD 5 million in the
third quarter.

Alloys & Specialties

The Alloys & Specialties segment of Aperam had higher sales in the fourth
quarter at USD 166 million compared to USD 126 million in the third quarter.
Higher shipments in the fourth quarter of 10 thousand tonnes compared to 7
thousand tonnes in the third quarter were primarily driven by continued strong
demand across the product range.  Average selling prices in the fourth quarter
remained relatively flat compared to the previous quarter.

The Alloys & Specialties segment achieved EBITDA of USD 10 million in the fourth
quarter of 2010.  This is an increase compared to EBITDA of USD 7 million in the
third quarter of 2010.  The improvements in EBITDA resulting from increased
volumes in the quarter were partially offset by additional maintenance costs
resulting from higher volume levels.

Depreciation expense in the fourth quarter was USD 3 million.

The Alloys & Specialties segment had operating income of USD 7 million in the
fourth quarter of 2010.


Recent Developments

* On December 16, 2010, Aperam announced that it had launched an initiative to
target management gains and profit enhancement of USD 250 million over the
next two years. The program, known as the "Leadership Journey", will focus
on cost reductions and increasing productivity. As part of this program,
Aperam plans to convert its Blast Furnace # 2 to charcoal in its Brazilian
plant in Timoteo, to suspend temporarily its traditional cold rolling mill
in its French plant in Isbergues (capacity of 100,000t) and to invest USD
62 million in the productivity of its hot annealing and pickling line in
Gueugnon (France).

* On January 21, 2011, Aperam announced that at a general meeting held in
Luxembourg on January 21, 2011, ArcelorMittal as sole shareholder of Aperam
appointed two new independent members to the Board of Directors of Aperam.
The two new independent members of the Board of Directors are Ms. Sylvie
Ouziel and Mr. Romain Bausch. The general meeting also clarified the
dividend policy for Aperam in 2011. In addition, the general meeting
confirmed that a share repurchase authorization would become effective for
Aperam upon effectiveness of the spin-off and would be structured similarly
to ArcelorMittal's share repurchase authorization. Finally, the general
meeting clarified the scope of a share-based awards program for Aperam's
management.

* On January 21, 2011, Aperam announced that subject to legal and regulatory
requirements being met, Aperam's dividend payment of USD 0.75 per share will
be applicable after the spin-off. Payment of the dividend in 2011 is
expected to occur on a quarterly basis, with the first dividend payment of
USD 0.1875 to be paid on or about March 31, 2011. The Board of Directors of
Aperam will propose the annual gross dividend to be paid in relation to
2012 at the annual general meeting of shareholders in 2012.

* On January 25, 2011, an extraordinary general meeting of shareholders of
ArcelorMittal approved by an overwhelming majority all resolutions on the
agenda, including the primary one, the spin-off of ArcelorMittal's stainless
and specialty steels business into Aperam. In total, 963,117,270 shares or
61.7% of ArcelorMittal's share capital, were present or represented at the
meeting.  On the same date, ArcelorMittal, as Aperam's sole shareholder,
approved the spin-off, accepted the transfer of the stainless and specialty
steels business from ArcelorMittal to Aperam and allocated 78,045,730 of the
Company's ordinary shares to to ArcelorMittal's shareholders.

* On January 26, 2011, as part of the spin-off, ArcelorMittal provided a USD
900 million one-year bridge loan to Aperam.  The intention is to replace the
bridge loan with external financing.

* On January 31, 2011, Aperam's ordinary shares commenced trading on the
Luxembourg Stock Exchange, NYSE Euronext Paris and NYSE Euronext Amsterdam
under the symbol "APAM". On the same date, Aperam's New York registry shares
(NYRS) began trading in the over-the-counter (OTC) marketplace in the United
States under the symbol APEMY, with each NYRS representing one ordinary
share.

* On February 1, 2011, Moody's Investor Services assigned a provisional "Ba2"
Corporate Family Rating and a provisional Ba2 Probability of Default Rating
to Aperam.  The outlook of all ratings is stable.

* On February 3, 2010, Standard & Poor's Ratings Services assigned its
preliminary "BB" long-term corporate credit rating to Aperam.  The outlook
is stable.



New Developments

* On February 7, 2011, the Board of Directors of Aperam approved an investment
of USD 28 million in a new induction furnace and an Electro Slag Remelting
furnace in its French plant in Imphy to increase revenue and improve
competitiveness in the Alloys & Specialties segment as part of the
Leadership Journey.

Conference calls

Media call
Aperam management will host a news conference at:

+--------------------------+----------+----------+------------+
| Date | New York | London | Luxembourg |
+--------------------------+----------+----------+------------+
| Tuesday February 8, 2010 |  3:00 am |  8:00 am |  9:00 am |
+--------------------------+----------+----------+------------+



* The dial-in numbers for the call are:  France (+33 (0) 1 70 99 42 80 and
toll free 0800 032 3808); USA (+1 212 444 0896 and toll free
+1 866 602 0258); and international (+44 (0) 20 7138 0844)
* The presentation is available on www.aperam.com

Investor call
Aperam management will host a conference call for members of the investment
community to discuss the fourth quarter 2010 financial performance at:

+--------------------------+----------+---------+------------+
| Date | New York | London | Luxembourg |
+--------------------------+----------+---------+------------+
| Tuesday February 8, 2010 | 8:00 AM | 1:00 PM | 2:00 PM |
+--------------------------+----------+---------+------------+



* The dial-in numbers for the call are:  France (+33 (0) 170 99 4295 and toll
free 0800 942 824); USA (+1 718 354 1388 and toll free +1 888 935 4577); and
international (+44 (0) 20 7806 1956)
* The presentation is available on www.aperam.com


Contacts

Corporate Communications / Jean Lasar: +352 4792 2359
Investor Relations / Michael Bennett: +44 (0) 78 2594 2938


About Aperam

Aperam is a global player in stainless, electrical and specialty steel, with
operations in more than 30 countries.  The business is organized in three
divisions: Stainless & Electrical Steel, Service & Solutions and Alloys &
Specialties.

Aperam has 2.5 million tonnes of flat stainless steel capacity in Brazil and
Europe and is a leader in high value added niches - alloys and specialties.
Aperam has also a highly integrated distribution, processing and services
network and a unique capability to produce stainless and specialty from low cost
biomass (charcoal). Its industrial network is concentrated in six main plants
located in Brazil, Belgium and France.  Aperam has about 9,900 employees.

Aperam commits to operate in a responsible way with respect to health, safety
and wellbeing of its employees, contractors and the communities in which it
operates. It is also committed to the sustainable management of the environment
and of finite resources.  In 2010, Aperam had revenues of USD 5.6 billion and
shipments of 1.74 million tonnes.

For further information about Aperam, please refer to our website www.aperam.com


Forward-looking statements

This document may contain forward-looking information and statements about
Aperam and its subsidiaries. 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 may be identified by the words "believe," "expect," "anticipate,"
"target" or similar expressions. Although Aperam's management believes that the
expectations reflected in such forward-looking statements are reasonable,
investors and holders of Aperam's securities are cautioned that forward-looking
information and statements are subject to numerous risks and uncertainties, many
of which are difficult to predict and generally beyond the control of Aperam,
that could cause actual results and developments to differ materially and
adversely 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 filings with the Luxembourg Stock Market
Authority for the Financial Markets (Commission de Surveillance du Secteur
Financier). Aperam undertakes no obligation to publicly update its forward-
looking statements, whether as a result of new information, future events, or
otherwise.


APERAM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

+------------------------------+-----------------+-+--------+---------+--------+
|(in millions of U.S. dollars) |December 31, 2010| |December|September|December|
| |PRO FORMA | |31, 2010|30, 2010 |31, 2009|
+------------------------------+-----------------+-+--------+---------+--------+
|Non current assets | 4,498| | 4,488| 4,475| 5,023|
+------------------------------+-----------------+-+--------+---------+--------+
|Intangible assets | 999| | 989| 998| 1,045|
+------------------------------+-----------------+-+--------+---------+--------+
|Property, plant and equipment | 2,917| | 2,917| 2,979| 3,193|
+------------------------------+-----------------+-+--------+---------+--------+
|ArcelorMittal tax | | | | | |
|indemnification | -| | -| -| 288|
+------------------------------+-----------------+-+--------+---------+--------+
|Investment & other | 582| | 582| 498| 497|
+------------------------------+-----------------+-+--------+---------+--------+
|  |  | |  |  |  |
+------------------------------+-----------------+-+--------+---------+--------+
|Current assets & working | | | | | |
|capital | 1,367| | 1,905| 2,081| 1,502|
+------------------------------+-----------------+-+--------+---------+--------+
|Inventories, trade receivables| | | | | |
|& trade payables | 959| | 959| 1,143| 805|
+------------------------------+-----------------+-+--------+---------+--------+
|Other assets | 180| | 180| 211| 235|
+------------------------------+-----------------+-+--------+---------+--------+
|ArcelorMittal tax | | | | | |
|indemnification | -| | -| 273| -|
+------------------------------+-----------------+-+--------+---------+--------+
|Amount receivable under cash- | | | | | |
|pooling arrangement | -| | 646| 324| 344|
+------------------------------+-----------------+-+--------+---------+--------+
|Cash & cash equivalents | 228| | 120| 130| 118|
+------------------------------+-----------------+-+--------+---------+--------+
|  |  | |  |  |  |
+------------------------------+-----------------+-+--------+---------+--------+
|Shareholders' equity | 3,917| | 3,654| 3,717| 3,589|
+------------------------------+-----------------+-+--------+---------+--------+
|Group share | 3,912| | 3,649| 3,712| 3,583|
+------------------------------+-----------------+-+--------+---------+--------+
|Non-controlling interests | 5| | 5| 5| 6|
+------------------------------+-----------------+-+--------+---------+--------+
|  |  | |  |  |  |
+------------------------------+-----------------+-+--------+---------+--------+
|Non current liabilities | 572| | 1,363| 1,429| 1,901|
+------------------------------+-----------------+-+--------+---------+--------+
|Interest bearing liabilities | 122| | 932| 944| 1,375|
+------------------------------+-----------------+-+--------+---------+--------+
|Deferred employee benefits | 181| | 181| 178| 193|
+------------------------------+-----------------+-+--------+---------+--------+
|Provision and other | 269| | 250| 307| 333|
+------------------------------+-----------------+-+--------+---------+--------+
|  |  | |  |  |  |
+------------------------------+-----------------+-+--------+---------+--------+
|Current liabilities (excluding| | | | | |
|trade payables) | 1,376| | 1,376| 1,410| 1,035|
+------------------------------+-----------------+-+--------+---------+--------+
|Interest bearing liabilities | 957| | 900| 955| 506|
+------------------------------+-----------------+-+--------+---------+--------+
|Other | 419| | 476| 455| 529|
+------------------------------+-----------------+-+--------+---------+--------+




APERAM CONDENSED COMBINED STATEMENTS OF OPERATIONS

+---------------------+--------------------------+-+---------------------------+
| | Year Ended | | Three Months Ended |
| +--------+--------+--------+-+--------+--------+---------+
|(in millions of U.S. |December| | | |December| | |
| dollars) |31, 2010|December|December| |31, 2010|December|September|
| | PRO |31, 2010|31, 2009| | PRO |31, 2010|30, 2010 |
| | FORMA | | | | FORMA | | |
+---------------------+--------+--------+--------+-+--------+--------+---------+
|Sales | 5,604| 5,604| 4,235| | 1,434| 1,434| 1,372|
+---------------------+--------+--------+--------+-+--------+--------+---------+
|EBITDA | 410| 410| 226| | 22| 22| 66|
+---------------------+--------+--------+--------+-+--------+--------+---------+
|Non recurring charges| -| -| 100| | -| -| -|
+---------------------+--------+--------+--------+-+--------+--------+---------+
|Depreciation & | | | | | | | |
|Impairment | 319| 317| 333| | 99| 99| 72|
+---------------------+--------+--------+--------+-+--------+--------+---------+
|Operating Income | 91| 93| (207)| | (77)| (77)| (6)|
+---------------------+--------+--------+--------+-+--------+--------+---------+
|Income from other | | | | | | | |
|investments | 9| 9| 2| | -| -| 1|
+---------------------+--------+--------+--------+-+--------+--------+---------+
|Interest income | | | | | | | |
|(expense) and other | | | | | | | |
|net financing cost | 43| -| (2)| | 67| 54| (13)|
+---------------------+--------+--------+--------+-+--------+--------+---------+
|Income before taxes | | | | | | | |
|and non-controlling | | | | | | | |
|interests | 143| 102| (207)| | (10)| (23)| (18)|
+---------------------+--------+--------+--------+-+--------+--------+---------+
|Income tax expense | | | | | | | |
|(benefit) | 14| (3)| (57)| | (20)| (25)| (6)|
+---------------------+--------+--------+--------+-+--------+--------+---------+
|Income before non- | | | | | | | |
|controlling interests| 129| 105| (150)| | 10| 2| (12)|
+---------------------+--------+--------+--------+-+--------+--------+---------+
|Non-controlling | | | | | | | |
|interests | 1| 1| -| | -| -| -|
+---------------------+--------+--------+--------+-+--------+--------+---------+
|Net income (loss) | 128| 104| (150)| | 10| 2| (12)|
+---------------------+--------+--------+--------+-+--------+--------+---------+



APERAM CONDENSED COMBINED STATEMENTS OF CASH FLOW

+---------------------+--------------------------+-+---------------------------+
| | Year Ended | | Three Months Ended |
| +--------+--------+--------+-+--------+--------+---------+
|(in millions of U.S. |December| | | |December| | |
| dollars) |31, 2010|December|December| |31, 2010|December|September|
| | PRO |31, 2010|31, 2009| | PRO |31, 2010|30, 2010 |
| | FORMA | | | | FORMA | | |
+---------------------+--------+--------+--------+-+--------+--------+---------+
|Net Income (Loss) | 128| 104| (150)| | 10| 2| (12)|
+---------------------+--------+--------+--------+-+--------+--------+---------+
|Non-controlling | | | | | | | |
|interests | 1| 1| -| | -| -| -|
+---------------------+--------+--------+--------+-+--------+--------+---------+
|Depreciation and | | | | | | | |
|impairment | 319| 317| 333| | 99| 99| 72|
+---------------------+--------+--------+--------+-+--------+--------+---------+
|Change in working | | | | | | | |
|capital | (211)| (211)| 277| | 161| 161| (94)|
+---------------------+--------+--------+--------+-+--------+--------+---------+
|Other | (140)| 151| (246)| | (133)| 140| 34|
+---------------------+--------+--------+--------+-+--------+--------+---------+
|Net cash provided by | | | | | | | |
|operating activities | 97| 362| 214| | 137| 402| -|
+---------------------+--------+--------+--------+-+--------+--------+---------+
|Purchase of property,| | | | | | | |
|plant and equipment | | | | | | | |
|(CAPEX) | (101)| (101)| (115)| | (40)| (40)| (19)|
+---------------------+--------+--------+--------+-+--------+--------+---------+
|Loans under cash | | | | | | | |
|pooling arrangements | | | | | | | |
|(net) | -| (317)| 192| | -| (327)| 74|
+---------------------+--------+--------+--------+-+--------+--------+---------+
|Other investing | | | | | | | |
|activity | 14| 14| 13| | (6)| (6)| 17|
+---------------------+--------+--------+--------+-+--------+--------+---------+
|Net Cash used in | | | | | | | |
|investing activities | (87)| (404)| 90| | (46)| (373)| 72|
+---------------------+--------+--------+--------+-+--------+--------+---------+
|Proceeds (payments) | | | | | | | |
|from payables to | | | | | | | |
|banks and long term | | | | | | | |
|debt | (179)| (179)| (220)| | (8)| (8)| (40)|
+---------------------+--------+--------+--------+-+--------+--------+---------+
|Borrowings | | | | | | | |
|(repayments) under | | | | | | | |
|cash pooling | | | | | | | |
|arrangements (net) | -| 197| (10)| | -| (34)| (18)|
+---------------------+--------+--------+--------+-+--------+--------+---------+
|Dividends paid | (69)| (69)| (156)| | -| -| (10)|
+---------------------+--------+--------+--------+-+--------+--------+---------+
|Other financing | | | | | | | |
|activities (net) | 93| 93| 47| | 2| 2| (5)|
+---------------------+--------+--------+--------+-+--------+--------+---------+
|Net cash used in | | | | | | | |
|financial activities | (155)| 42| (339)| | (6)| (40)| (73)|
+---------------------+--------+--------+--------+-+--------+--------+---------+
|Net increase | | | | | | | |
|(decrease) in cash | | | | | | | |
|and cash equivalents | (145)| -| (35)| | 85| (11)| (1)|
+---------------------+--------+--------+--------+-+--------+--------+---------+
|Effect of exchange | | | | | | | |
|rate changes on cash | | | | | | | |
|& other financing | | | | | | | |
|activities | 2| 2| 27| | 1| -| 10|
+---------------------+--------+--------+--------+-+--------+--------+---------+
|Change in cash and | | | | | | | |
|cash equivalents | (143)| 2| (8)| | 86| (11)| 9|
+---------------------+--------+--------+--------+-+--------+--------+---------+



Appendix 1a - Health & Safety statistics

+-------------------------+-------------------------+--------------------------+
| | Year Ended | Three Months Ended |
| Health & Safety +------------+------------+------------+-------------+
| Statistics |December 31,|December 31,|December 31,|September 30,|
| | 2010 | 2009 | 2010 | 2010 |
+-------------------------+------------+------------+------------+-------------+
| Frequency Rate* | 2.1 | 1.8 | 1.0 | 2.2 |
+-------------------------+------------+------------+------------+-------------+



* Lost time injury frequency rate equals lost time injuries per 1,000,000 worked
hours, based on own personnel and contractors

Appendix 1b - Key financial and operational information



+------------------+------------+----------+-----------+------------+----------+
| Year Ended |Stainless & |Services &| Alloys & | Others & | |
|December 31, 2010 | Electrical |Solutions |Specialties|Eliminations| Total |
| |Steel[1],[2]| | | | |
+------------------+------------+----------+-----------+------------+----------+
|Operational | | | | | |
|information |  |  |  |  |  |
+------------------+------------+----------+-----------+------------+----------+
|Steel shipments | | | | | |
|(000t) | 1,638| 652| 33| (582)| 1,741|
+------------------+------------+----------+-----------+------------+----------+
|Steel selling | | | | | |
|price (USD/t) | 2,591| 3,397| 15,368|  | 3,066|
+------------------+------------+----------+-----------+------------+----------+
|  |  |  |  |  |  |
+------------------+------------+----------+-----------+------------+----------+
|Financial | | | | | |
|information |  |  |  |  |  |
+------------------+------------+----------+-----------+------------+----------+
|Sales (USDm) | 4,431| 2,327| 529| (1,683)| 5,604|
+------------------+------------+----------+-----------+------------+----------+
|EBITDA (USDm) | 289| 83| 42| (4)| 410|
+------------------+------------+----------+-----------+------------+----------+
|Non-recurring | | | | | |
|charges* (USDm) | -| -| -| -| -|
+------------------+------------+----------+-----------+------------+----------+
|Depreciation & | | | | | |
|impairment (USDm) | 281| 30| 6| -| 317|
+------------------+------------+----------+-----------+------------+----------+
|Operating income /| | | | | |
|loss (USDm) | 8| 53| 36| (4)| 93|
+------------------+------------+----------+-----------+------------+----------+
|Note 1: Stainless & Electrical Steel shipments of 1,638kt of which 622kt were |
|from South America and 1,016kt were from Europe |
+------------------------------------------------------------------------------+
|Note 2: Stainless & Electrical Steel EBITDA of USD 289m of which USD 220m was |
|from South America and USD 69m was from Europe |
+------------------------------------------------------------------------------+





+----------------+----------------+----------+-----------+------------+--------+
| Year Ended | Stainless & |Services &| Alloys & | Others & | |
| December | Electrical |Solutions |Specialties|Eliminations| Total |
| 31, 2009 | Steel[1],[2] | | | | |
+----------------+----------------+----------+-----------+------------+--------+
|Operational | | | | | |
|information |  |  |  |  |  |
+----------------+----------------+----------+-----------+------------+--------+
|Steel shipments | | | | | |
|(000t) | 1,374| 575| 27| (529)| 1,447|
+----------------+----------------+----------+-----------+------------+--------+
|Steel selling | | | | | |
|price (USD/t) | 2,230| 2,868| 14,732|  | 2,762|
+----------------+----------------+----------+-----------+------------+--------+
|  |  |  |  |  |  |
+----------------+----------------+----------+-----------+------------+--------+
|Financial | | | | | |
|information |  |  |  |  |  |
+----------------+----------------+----------+-----------+------------+--------+
|Sales (USDm) | 3,185| 1,785| 435| (1,143)| 4,235|
+----------------+----------------+----------+-----------+------------+--------+
|EBITDA (USDm) | 202| 13| 16| (5)| 226|
+----------------+----------------+----------+-----------+------------+--------+
|Non-recurring | | | | | |
|charges* (USDm) | 72| 17| 11| -| 100|
+----------------+----------------+----------+-----------+------------+--------+
|Depreciation & | | | | | |
|impairment | | | | | |
|(USDm) | 287| 36| 6| 4| 333|
+----------------+----------------+----------+-----------+------------+--------+
|Operating income| | | | | |
|/ loss (USDm) | (157)| (40)| (1)| (9)| (207)|
+----------------+----------------+----------+-----------+------------+--------+
|Note 1: Stainless & Electrical Steel shipments of 1,374kt of which 515kt were |
|from South America and 859kt were from Europe |
+------------------------------------------------------------------------------+
|Note 2: Stainless & Electrical Steel EBITDA of USD 202m of which USD 245m was |
|from South America and USD (43m) was from Europe |
+------------------------------------------------------------------------------+





+------------------+------------+----------+-----------+------------+----------+
| Quarter Ended |Stainless & |Services &| Alloys & | Others & | |
|December 31, 2010 | Electrical |Solutions |Specialties|Eliminations| Total |
| |Steel[1],[2]| | | | |
+------------------+------------+----------+-----------+------------+----------+
|Operational | | | | | |
|information |  |  |  |  |  |
+------------------+------------+----------+-----------+------------+----------+
|Steel shipments | | | | | |
|(000t) | 343| 147| 10| (134)| 366|
+------------------+------------+----------+-----------+------------+----------+
|Steel selling | | | | | |
|price (USD/t) | 3,072| 3,559| 15,944|  | 3,666|
+------------------+------------+----------+-----------+------------+----------+
|  |  |  |  |  |  |
+------------------+------------+----------+-----------+------------+----------+
|Financial | | | | | |
|information |  |  |  |  |  |
+------------------+------------+----------+-----------+------------+----------+
|Sales (USDm) | 1,113| 566| 166| (411)| 1,434|
+------------------+------------+----------+-----------+------------+----------+
|EBITDA (USDm) | 26| 3| 10| (17)| 22|
+------------------+------------+----------+-----------+------------+----------+
|Non-recurring | | | | | |
|charges* (USDm) | -| -| -| -| -|
+------------------+------------+----------+-----------+------------+----------+
|Depreciation & | | | | | |
|impairment (USDm) | 88| 8| 3| -| 99|
+------------------+------------+----------+-----------+------------+----------+
|Operating income /| | | | | |
|loss (USDm) | (62)| (5)| 7| (17)| (77)|
+------------------+------------+----------+-----------+------------+----------+
|Note 1: Stainless & Electrical Steel shipments of 343kt of which 157kt were |
|from South America and 186kt were from Europe |
+------------------------------------------------------------------------------+
|Note 2: Stainless & Electrical Steel EBITDA of USD 26m of which USD 17m was |
|from South America and USD 9m was from Europe |
+------------------------------------------------------------------------------+





+------------------+------------+----------+-----------+------------+----------+
| Quarter Ended |Stainless & |Services &| Alloys & | Others & | |
|September 30, 2010| Electrical |Solutions |Specialties|Eliminations| Total |
| |Steel[1],[2]| | | | |
+------------------+------------+----------+-----------+------------+----------+
|Operational | | | | | |
|information |  |  |  |  |  |
+------------------+------------+----------+-----------+------------+----------+
|Steel shipments | | | | | |
|(000t) | 427| 159| 7| (133)| 460|
+------------------+------------+----------+-----------+------------+----------+
|Steel selling | | | | | |
|price (USD/t) | 2,401| 3,539| 16,703|  | 2,899|
+------------------+------------+----------+-----------+------------+----------+
|  |  |  |  |  |  |
+------------------+------------+----------+-----------+------------+----------+
|Financial | | | | | |
|information |  |  |  |  |  |
+------------------+------------+----------+-----------+------------+----------+
|Sales (USDm) | 1,058| 576| 126| (388)| 1,372|
+------------------+------------+----------+-----------+------------+----------+
|EBITDA (USDm) | 48| 12| 7| (1)| 66|
+------------------+------------+----------+-----------+------------+----------+
|Non-recurring | | | | | |
|charges* (USDm) | -| -| -| -| -|
+------------------+------------+----------+-----------+------------+----------+
|Depreciation & | | | | | |
|impairment (USDm) | 64| 7| 1| -| 72|
+------------------+------------+----------+-----------+------------+----------+
|Operating income /| | | | | |
|loss (USDm) | (16)| 5| 6| (1)| (6)|
+------------------+------------+----------+-----------+------------+----------+
|Note 1: Stainless & Electrical Steel shipments of 427kt of which 164kt were |
|from South America and 263kt were from Europe |
+------------------------------------------------------------------------------+
|Note 2: Stainless & Electrical Steel EBITDA of USD 48m of which USD 62m was |
|from South America and USD (14m) was from Europe |
+------------------------------------------------------------------------------+



* Non-recurring charges (gains) =

* Unusual and non-recurring inventory write-downs equal to or exceeding 10% of
total related net inventories value before write down at the considered
quarter end or/and exceeding USD 75 million
* Restructuring charges (gains) equal to or exceeding USD 10 million for the
considered quarter
* Capital loss (gain) equal to or exceeding USD 10 million for the considered
quarter
* One-off capital loss (gains) equal to or exceeding USD 10 million for the
considered quarter
* Other non-recurring expense (gains) equal to or exceeding USD 10 million for
the considered quarter



[1] The financial information in this press release and Appendix 1 has been
prepared in accordance with International Financial Reporting Standards ("IFRS")
as adopted by the European Union. While the interim financial information
included in this announcement has been prepared in accordance with IFRS
applicable to interim periods, this announcement does not contain sufficient
information to constitute an interim financial report as defined in
International Accounting Standards 34, "Interim Financial Reporting". Unless
otherwise noted the numbers in the press release have not been audited. The
financial information and certain other information presented in a number of
tables in this press release have been rounded to the nearest whole number or
the nearest decimal. Therefore, the sum of the numbers in a column may not
conform exactly to the total figure given for that column. In addition, certain
percentages presented in the tables in this press release reflect calculations
based upon the underlying information prior to rounding and, accordingly, may
not conform exactly to the percentages that would be derived if the relevant
calculations were based upon the rounded numbers.
[2] Lost time injury frequency rate equals lost time injuries per 1,000,000
worked hours, based on own personnel and contractors
[3] The pro forma combined financial information is provided in order to present
Aperam's financial position and results of operations as of and for the year
ended December 31, 2010 and the quarter then ended, as adjusted to give effect
to the spin-off and related financing activities, as if they had taken place on
January 1, 2010.  Such pro forma financial information has been adjusted to give
effect to: · the allocation of 78,049,730 of the Company's ordinary shares to
the shareholders of ArcelorMittal; · the incurrence of $891 million of debt
under new financing arrangements and the associated interest expense and other
financing costs; and · the repayment of $1,670 million of related party debt and
payables, in each case, owed by the Company to ArcelorMittal.
[4] Includes shipments from small- and medium-sized entities









This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.

Source: APERAM via Thomson Reuters ONE

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