ArcelorMittal Frýdek-Místek achieved record-breaking profit in 2008

Frýdek-Místek, August 26, 2009 – 2008 was - for ArcelorMittal Frýdek-Místek (former Válcovny plechu Frýdek-Místek) – the year of changes, high investment and record-breaking profit. „Already the fifth year in sequence we are successful in improving economic figures. In 2008, we did significantly increase total profit, thus, we finished 2008 with record-breaking profit exceeding CZK 600 million“ stated the Board’s Chairman and Company CEO - Tomáš Mischinger.

Two principal factors, thanks to which ArcelorMittal Frýdek-Místek continuously improves its economic figures, are: production of transformer sheets and production streamline. Thanks to this fact, the Company finished 2008 with profit-making amounting to CZK 600.32 million (before tax), what is by 13% more vs. 2007. In 2008, revenues from sales of own Products & Services increased to CZK 3.9 billion, whereas in 2007, these revenues amounted to CZK 3.5 billion. EBITDA did increase year-on-year by more than 12 %.

Value added, expressing Company performance, increased year-on-year by CZK 865.9 million and it exceeded CZK 1 billion. Total sales volume achieved 130,938 tons, from which 67 % were delivered to the Czech Market and 33 % were exported. „Transformer sheets do represent principal Company Product – with their production, the Company ranks among merely 13 world Producers. “In the Czech Republic, we are the only Producer of such commodity“- Company CEO states.

In 2008, ArcelorMittal Frýdek-Místek was successful in implementing the major Capital Projects in the history of the Company. „Thanks to investing to latest production technology in the amount of CZK 2.5 billion we were successful in production volume increasing in the area of electric steel production from 22 thousand tons per a year to more than a double. We expect that in 2009, production volume of the annual capacity will achieve 46.6 thousand tons of electric steel“ - Mr. Mischinger states.

In 2008, investment included new production lines construction or existing production technology reconstruction. The very first part of investment was invested to the construction of five bell-type furnaces electrically heated for HT annealing of coils. Thus, existing production capacity was increased by 20 thousand tons. Further, a new thermo-straightening line and coating line were purchased. „To such technology, the Company invested about CZK 650 million“ states additionally David Božon, Company COO.

In 2008, the second phase of investment consisted of the construction of latest gas-fired furnaces and early in 2009, reconstruction of decarburization line was finalized. „Besides investing to the production technology, about CZK 60 million was invested to de-emulgation, neutralization and waste water treatment, what does represent a principal contribution to environmental impacts elimination” explains David Božon. Increased requirements for electric power were covered by investment to the reconstruction of Company switch-house.

Like many other companies, ArcelorMittal Frýdek-Místek faces impacts of the global economic crisis that has influenced deep-drawing steel production and orders volume for automotive industry. „Therefore, we had to start applying crisis management and we had to behave ourselves too circumspectly. First of all, we had to reduce fixed costs and Company expenses. Thanks to this fact, we currently are successful in profit making“ summarizes Mr. Suyash Pradhan, Company CFO.

ArcelorMittal Frýdek-Místek (former Válcovny plechu Frýdek-Místek) is the Subsidiary of ArcelorMittal Ostrava. The Company is significant Producer of cold-rolled steel. Production portfolio is represented by deep-drawing steel and electro-technical steel; last but not least, galvanized earthing strip and wire production. After merging with Nová Hut – Válcovna za studena, Company production portfolio also includes carbon steel and micro-alloyed steel and steel binding strips. Most of produced electro-technical steels are exported to - mainly - Europe – Italy, Turkey and Germany.
Currently, Company headcount including its Subsidiaries counts 894.

2008 became a milestone in the history of the Company. Rollers observed the 175th anniversary of the establishment of former Karlova hut.
April 1, 2008, the business name of the Company was changed from Válcovny plechu to ArcelorMittal Frýdek-Místek.
August 1, 2008, merger was finalized with the Subsidiary Nová hut – Válcovna za studena. Thus, management process of latest established company has been simplified.

ArcelorMittal Ostrava a.s. is the biggest steel company in the Czech Republic and it belongs to the world biggest steel group ArcelorMittal. Its annual production is more than 3 million tons of steel and approximately 50% of its production is exported to more than 80 countries of the world. The headcount of the company is 6600 people and together with its subsidiaries it makes more than 9300. In the fiscal year 2008 (1.4. 2008 – 31.12. 2008) the company generated conoslidated profit after taxation CZK 6.077 billion with the incomes CZK 50.5 billion. ArcelorMittal Ostrava is one of the biggest tax payers in the Czech Republic.

Last update: 27.8.2009