ArcelorMittal (ENXTAM:MT) and Nippon Steel & Sumitomo Metal Corporation (TSE:5401) (NSSMC) remain one of the top offers for Calvert plant. Multiple sources said that a rumored $2.1 billion bid by Arcelor and NSSMC for the Calvert plant remains one of the top offers, although it was unclear whether the reported bid could be revised in later stages of negotiations. Sources also said that Companhia Siderurgica Nacional (BOVESPA:CSNA3) had been considered another possible frontrunner for either one or both of the assets. A spokeswoman for ArcelorMittal USA, a spokeswoman for CSN and a spokesman for NSSMC could not be reached for comment.

ArcelorMittal announced unaudited consolidated earnings and operating results for the first quarter ended March 31, 2013. For the quarter, the company reported sales of $19,752 million against $22,703 million a year ago. Operating loss was $404 million against $804 million a year ago. Loss from equity method investments and other income was $18 million against $15 million a year ago. Loss before taxes and non-controlling interests was $247 million against $79 million a year ago. Net loss from continuing operations was $345 million or $0.21 per basic and diluted share against net income from continuing operations of $92 million or $0.42 per basic and diluted share a year ago. EBITDA was $1,565 million against $2,118 million a year ago. Net cash used in operating activities was $302 million against net cash from operating activities of $512 million a year ago. Purchase of property, plant and equipment and intangibles was $927 million against $1,254 million a year ago. Operating result for the first quarter of 2013 was positively impacted by a $47 million fair valuation gain relating to the acquisition of an additional ownership interest in DJ Galvanizing in Canada. In addition, operating result for the first quarter of 2013, were positively impacted by $92 million, related to Dynamic Delta Hedge (DDH) income. Losses incurred during first quarter of 2013 relate primarily to a fall in income from the Chinese and German investees. Net debt decreased by $3.8 billion during first quarter of 2013 to $18.0 billion as of March 31, 2013 due largely to proceeds from combined offering ($4 billion) and proceeds from the first tranche of AMMC 15% stake sale ($0.8 billion), partially offset by working capital investment ($0.5 billion). For the quarter, the company’s total iron ore production was 15.4 million metric tones against 15.0 million metric tones a year ago. Crude steel production was 22.4 million metric tones against 22.8 million metric tones a year ago. Total shipments of steel products were 20.9 million metric tones against 22.2 million metric tones a year ago. The company reiterated earnings guidance for the year 2013 and provided earnings guidance for the second quarter of 2013. For the year, the company assuming that in 2013 iron ore prices and the margin of steel prices over raw material costs is similar to the levels of 2012; the company expects to report EBITDA above $7.1 billion. The expected improvement in underlying profitability is expected to be driven by 3 factors: a 2% increase in steel shipments; an approximate 20% increase in marketable iron ore shipments, and; the realized benefits from asset optimization and management gains initiatives. During 2013, the company expects to spend approximately $3.5 billion on capital expenditures, of which $2.7 billion is non-growth related. For the second quarter, EBITDA in the second quarter of 2013 is expected to be above first quarter of 2013 levels. Together with an expected release of working capital and receipt of previously announced disposal proceeds, this should support a further reduction in net debt to approximately $17 billion by end June 2013.

ArcelorMittal, Q1 2013 Earnings Call, May 10, 2013