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Press release of Arcelor Mittal about dividend policy

Press release

Arcelor Mittal announces proposed new dividend policy and reaffirms 2008 Value plan and 2006 guidance

London 27 September: Arcelor Mittal, the world’s leading steel company, today announces its proposed new dividend policy and reaffirms its combined 2008 value plan and 2006 guidance.
 

Dividend Policy:

The Board of Directors today announces that it has agreed a new dividend and cash distribution policy which will be proposed to the shareholders vote at the next general meeting*.

The new policy provides a mechanism which will allow Arcelor Mittal to honour its commitment of returning 30% of net income to shareholders every year through an annual base dividend, supplemented by additional share buy-backs.   

The Board of Directors proposes an annual base dividend of USD 1.30 (approximately 1 Euro at the current exchange rate). This base dividend has been designed to guarantee a minimum payout per year and would rise in order to reflect the underlying growth of the company.  Payment of this dividend will be on a quarterly basis.

In addition to this dividend, the Board of Directors is proposing a share buy-back program, tailored to match the 30% distribution pay-out commitment of the group.  As a consequence, the sum of the annual base dividend and the share-buy back program will each year represent 30% of the annual net income. The proposed size of the share buy-back will be announced at the time of the annual results.

This new distribution policy will be implemented as 1st January 2007, for the 2006 results.   

2008 Value Plan and 2006 EBITDA guidance

Arcelor Mittal reaffirms its value plan on a combined basis, resulting in a targeted EBITDA for the combined company of US$20 billion in 2008.  The company also reaffirms its pro-forma EBITDA guidance of US$15 – US$15.6 billion for 2006.

Aditya Mittal, CFO Arcelor Mittal, said:

“The commitment we have made to pay a base dividend of $1.30 per share is a reflection of the economic strength of Arcelor Mittal. The overriding reason for the two companies merging was to deliver the financial stability and consistency that investors’ desire. This dividend and share buy-back commitment is a measure of our confidence in the potential of Arcelor Mittal.

* Arcelor Mittal (currently Mittal Steel NV entity)

Arcelor Mittal is today conducting an investor seminar in London. Copies of the presentations will be posted on the web at www.arcelormittal.com  
 
 
 
 
 
 
 
 
 
 

Arcelor Mittal is today conducting an investor seminar in London. Presentations will be posted on the web at www.arcelormittal.com  

ENQUIRIES:

Investor Relations

Continental Europe  +352 4792 2414

UK/Asia/Africa   +44 207 543 1172

Americas   +1 312 899 3569

Retail    +352 4792 2434

SRI    +352 4792 2902

Media

                        Nicol Davidson Arcelor Mittal   
                        +44 207 543 1162 / 1172

Luc Scheer   Arcelor Mittal
    +352 4792 2360

UK media:    Maitland Consultancy
Philip Gawith / Lydia Pretzlik +44 20 7379 5151

US media:   Abernathy MacGregor

Gillian Angstadt   +1 212 371 5999
 
French media:   Image 7

Tiphaine Hecketsweiler  +331 5370 7470
 

About Arcelor Mittal:  

Arcelor Mittal is the world’s leading steel company, by both revenue and production. The company operates 61 plants across 27 countries, employing some 320,000 employees.