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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/