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Sales by products2008 2007 Change year-on-year %ThousandtonnesUS$millionThousandtonnesUS$millionThousandtonnesUS$millionHot-rolled strip and plate 2,215 2,004 1,353 805 63.7 148.9Cold-rolled sheet 1,088 1,065 464 330 134.5 222.7Galvanized and other metallic coated sheet 1,490 1,549 720 622 106.9 149.0Color coated sheet 17 29 - - n/a n/aTotal rolled products 4,810 4,647 2,537 1,757 89.6 164.5Metalware products 70 128 - - n/a n/aSlabs 294 292 - - n/a n/aPig iron 10 2 - - n/a n/aTotal semifinished products 304 294 - - n/a n/aTotal steel products 5,184 5,069 2,537 1,757 104.3 188.5Other and shipping - 250 - 48 - 420.8Total 5,184 5,319 2,537 1,805 104.3 194.7US salesHot-rolled strip and plate 1,913 1,729 1,222 727 56.5 137.8Cold-rolled sheet 1,040 1,021 433 309 140.2 230.4Galvanized and other metallic coated sheet 1,450 1,511 669 577 116.7 161.9Color coated sheet 17 29 - - n/a n/aTotal rolled products 4,420 4,290 2,324 1,613 90.2 166.0Metalware products 70 128 - - n/a n/aSlabs 290 290 - - n/a n/aPig iron 10 2 - - n/a n/aTotal semifinished products 300 292 - - n/a n/aTotal steel products 4,790 4,710 2,324 1,613 106.1 192.0Other and shipping - 250 - 48 - 420.8Total US sales 4,790 4,960 2,324 1,661 106.1 198.6Export salesHot-rolled strip and plate 302 275 131 78 130.5 252.6Cold-rolled sheet 48 44 31 21 54.8 109.5Galvanized and other metallic coated sheet 40 38 51 45 (21.6) (15.6)Color coated sheet - - - - n/a n/aTotal rolled products 390 357 213 144 83.1 147.9Metalware products - - - - n/a n/aSlabs 4 2 - - n/a n/aPig iron - - - - n/a n/aTotal semifinished products 4 2 - - n/a n/aTotal steel products 394 359 213 144 85.0 149.3Other and shippingTotal export sales 394 359 213 144 85.0 149.3In 2008, compared with 2007, sales volume increased by 104.3%. This was due primarily to the impact of our acquisitions of newentities, a strong US market for the first nine months of the year, and the restart of Dearborn’s ‘C’ blast furnace.Production resultsProduction volumes, thousand tonnes 2008 2007 Change year-on-year %Total outputHot metal 3,201 1,656 93.3Crude steel 5,100 2,230 128.7Hot-rolled strip and plate 4,772 2,666 79.0Cold-rolled sheet 2,387 1,279 86.6Galvanized and other metallic coated sheet 1,400 699 100.3Metalware products 92 - n/aProduction for saleHot-rolled strip and plate 2,087 1,382 51.0Cold-rolled sheet 1,009 484 108.5Galvanized and other metallic coated sheet 1,304 751 73.6Color coated sheet 17 - n/aTotal rolled products 4,417 2,617 68.8Metalware products 63 - n/aSlabs 295 - n/aPig iron 14 - n/aTotal semifinished products 309 - n/aTotal steel products 4,789 2,617 83.0In 2008, the acquisitions already mentioned, andthe commissioning of Dearborn’s ‘C’ blast furnace,combined to produce 5,100 thousand tonnes ofslabs. Compared with 2,230 thousand tonnes in2007, this is a 128.7% increase. Hot-rolled strip andplate output amounted to 4,772 thousand tonnes in2008 – an increase of 79.0 % on the 2,666 thousandtones we produced in 2007. Cold-rolled sheet outputamounted to 2,387 thousand tonnes in 2008 – anincrease of 86.6% on the 1,279 thousand tonnes weproduced in 2007. Galvanized and other coated sheetoutput amounted to 1,400 thousand tonnes in 2008.Compared with 699 thousand tonnes in 2007, this is anincrease of 100.3%.Dearborn’s ‘B’ blast furnace, which was scheduled fora complete reline in 2010, experienced a productionincident on 5 January 2008, resulting in a completeproduction outage. This event did not affect ‘C’ blastfurnace production significantly.Sales and marketingFrom 2007 to 2008, total sales volume and domesticsales volume increased by 104.3% and 106.1%respectively. This was due mainly to newly acquiredentities (Sparrows Point, Warren and Wheeling) and toColumbus attaining post-construction full capacity.Direct sales to automotive manufacturers in 2008accounted for 24.2% of total revenue, which is muchless than the 51.3% we saw in 2007. This decreaserelates to the fact that US automotive manufacturerswere the first to feel the impact of the negativeeconomic conditions in North America.The share of non-automotive revenue increased from48.7% in 2007 to 75.8% in 2008. This was due mainlyto our newly acquired entities and Columbus increasingsales, compared with 2007. Sparrows Point, Warren andWheeling are less affected by the automotive industrythan Dearborn, while Columbus has not met all industryrequirements to sell steel to automotive manufacturers.68 69

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