PITTSBURGH, Jan. 26, 2016
/PRNewswire/ -- United States Steel Corporation (NYSE: X)
reported a full-year 2015 net loss of $1.5
billion, or $10.32 per diluted
share, which included items totaling $1.2
billion, or $8.53 per diluted
share, that were excluded to arrive at adjusted net loss of
$262 million, or $1.79 per diluted share. These adjustments
consist of charges of $426 million,
or $2.92 per diluted share, primarily
due to non-cash charges for restructuring and other strategic
actions, a charge of $36 million, or
$0.25 per diluted share, related to
the retirement of our 2.75% Senior Convertible Notes, a non-cash
impairment charge for an equity investment of $18 million, or $0.12 per diluted share, and a non-cash charge of
$766 million, or $5.24 per diluted share, for a full valuation
allowance related to the Company's domestic deferred tax
assets. For the full-year 2014, U. S. Steel reported net
income of $102 million, or
$0.69 per diluted share, which
included net charges of $574 million,
or $3.78 per diluted share, primarily
due to non-cash charges for strategic actions.
Fourth quarter 2015 net loss of $999
million, or $6.83 per diluted
share, compares to fourth quarter 2014 net income of $275 million, or $1.83 per diluted share, and a third quarter 2015
net loss of $173 million, or $1.18 per diluted share.
For a description of the non-generally accepted accounting
principles (non-GAAP) measures and a reconciliation to net earnings
(loss) attributable to U. S. Steel and earnings (loss) before
interest and income taxes (EBIT) see the Non-GAAP Financial
Measures section.
Earnings
Highlights
|
|
|
|
(Dollars in
millions, except per share amounts)
|
4Q
2015
|
3Q
2015
|
4Q
2014
|
2015
|
2014
|
Net
Sales
|
$
|
2,572
|
|
$
|
2,830
|
|
$
|
4,072
|
|
$
|
11,574
|
|
$
|
17,507
|
|
Segment (loss)
earnings before interest and income taxes (EBIT)
|
|
|
|
|
|
Flat-Rolled
|
$
|
(88)
|
|
$
|
(18)
|
|
$
|
247
|
|
$
|
(237)
|
|
$
|
709
|
|
U. S. Steel
Europe
|
6
|
|
18
|
|
34
|
|
81
|
|
133
|
|
Tubular
|
(64)
|
|
(50)
|
|
121
|
|
(179)
|
|
261
|
|
Other Businesses
|
9
|
|
10
|
|
18
|
|
33
|
|
82
|
|
Total Segment
EBIT
|
$
|
(137)
|
|
$
|
(40)
|
|
$
|
420
|
|
$
|
(302)
|
|
$
|
1,185
|
|
Postretirement
benefit expense
|
(5)
|
|
(11)
|
|
(24)
|
|
(43)
|
|
(114)
|
|
Other items not
allocated to segments
|
(164)
|
|
(119)
|
|
1
|
|
(710)
|
|
(658)
|
|
EBIT
|
$
|
(306)
|
|
$
|
(170)
|
|
$
|
397
|
|
$
|
(1,055)
|
|
$
|
413
|
|
Net interest and
other financial costs
|
87
|
|
53
|
|
50
|
|
257
|
|
243
|
|
Income tax
provision (benefit)
|
606
|
|
(50)
|
|
72
|
|
196
|
|
68
|
|
Net (loss)
earnings attributable to United States Steel
Corporation
|
$
|
(999)
|
|
$
|
(173)
|
|
$
|
275
|
|
$
|
(1,508)
|
|
$
|
102
|
|
-(Loss) earnings
per basic share
|
$
|
(6.83)
|
|
$
|
(1.18)
|
|
$
|
1.89
|
|
$
|
(10.32)
|
|
$
|
0.71
|
|
-(Loss) earnings
per diluted share
|
$
|
(6.83)
|
|
$
|
(1.18)
|
|
$
|
1.83
|
|
$
|
(10.32)
|
|
$
|
0.69
|
|
|
|
|
|
|
|
Adjusted earnings
before interest, income taxes, depreciation and amortization
(EBITDA)
|
$
|
(13)
|
|
$
|
85
|
|
$
|
534
|
|
$
|
202
|
|
$
|
1,698
|
|
Commenting on results, U. S. Steel President and Chief
Executive Officer Mario Longhi said,
"The $815 million of Carnegie Way
benefits we realized in 2015 show that we continue to make
significant progress on our journey toward our goal of achieving
economic profit across the business cycle. Our progress is real and
it is substantial, but our fourth quarter and full-year results
show that it is not yet enough to fully overcome some of the worst
market and business conditions we have seen."
Segment loss before interest and income taxes was $137 million, or $37 per ton, for the fourth quarter of 2015
compared to segment loss before interest and income taxes of
$40 million, or $10 per ton, in the third quarter of 2015 and
segment earnings before interest and income taxes of $420 million, or $92 per ton, in the fourth quarter of 2014.
For the fourth quarter 2015, we recorded a tax provision of
$606 million on our pre-tax loss of
$393 million. For the full-year
2015, we recorded a tax provision of $196
million on our pre-tax loss of $1.3
billion. The tax provision for both periods includes
the effects of a non-cash charge of $766
million for a full valuation allowance related to the
Company's domestic deferred tax assets. A tax valuation
allowance is required under accounting principles to record the
effect on income tax expense of a change in the potential future
realization of our deferred tax assets. The tax valuation
allowance is subject to reversal upon the Company's return to
sustained profitability. The accounting treatment of this
non-cash item has no effect on the ability of the Company to use
its net operating loss carryforwards and tax credits in the future
to reduce cash tax payments. We do not expect to have a tax
provision or benefit in 2016 on our domestic financial results.
Despite the significantly challenging market conditions, we
maintained positive operating cash flow of $359 million for the year ended December 31, 2015. After retiring
$379 million of debt in 2015, U. S.
Steel still had $755 million of cash
and $2.4 billion of total liquidity
as of December 31.
Segment Analysis
Fourth quarter results for our Flat-Rolled segment declined as
compared to the third quarter primarily due to a decrease in
average realized prices. Imported flat-rolled products, much
of which we believe are dumped and/or subsidized, continued to harm
the domestic market, as they did for all of 2015, placing downward
pressure on both our spot and our contract prices. Our
average realized prices declined during the fourth quarter by
approximately $30 per ton, while
fourth quarter shipments were comparable to third quarter.
Full-year Flat-Rolled segment results for 2015 declined from 2014
driven by lower shipments and average realized prices due primarily
to the negative impact of imports, as described above, and high
supply chain inventories partially offset by benefits provided by
our Carnegie Way efforts.
European segment results remained positive but declined compared
to the third quarter. A decrease in average realized
euro-based prices and shipments resulting from the negative effects
of the continued surge of imports, much of which we believe are
unfairly traded, were only partially offset by benefits from our
Carnegie Way efforts and lower raw materials costs. The
strengthening U.S. dollar also had a negative impact on fourth
quarter European segment results. Full-year 2015 results for
our European segment decreased from 2014 as the benefits from our
Carnegie Way efforts could not counteract the negative price and
foreign currency impacts described above.
Fourth quarter results for our Tubular segment declined as
compared to the third quarter largely due to continued unfavorable
market conditions and inefficiencies resulting from reduced
production volumes. Shipments and prices continue to be
adversely impacted by reduced drilling activity caused by low
energy prices and high levels of inventory in the supply
chain. Full-year Tubular segment results for 2015 decreased
from 2014 primarily due to the negative impact of the high levels
of tubular imports, much of which we believe are unfairly traded,
and low energy prices which resulted in a decrease in shipments and
average realized prices. These adverse impacts were partially
offset by benefits provided by our Carnegie Way efforts.
2016 Outlook
Commenting on U. S. Steel's outlook for 2016, Longhi said, "We
are facing significant headwinds and uncertainty in many of the
markets we serve but remain focused on continuing to improve our
cost structure, developing differentiated solutions for our
customers and creating more reliable and agile operating
capabilities. We have a strong and growing pipeline of Carnegie Way
projects that will provide benefits in our operating segments and
all other areas of our company. The substantive changes and
improvements we are making continue to increase our earnings power.
We are working hard every day to serve our customers and are well
positioned to respond to improving market conditions."
At current market conditions, which include spot prices, import
volumes and supply chain inventory levels, we would expect 2016
adjusted EBITDA to be near breakeven.
As overall market conditions improve during 2016, we would
expect adjusted EBITDA to improve consistent with the pace and
magnitude of any improvement in market conditions.
At current market conditions, we would expect lower results in
each of our operating segments as compared to 2015. We would expect
that the operating efficiencies related to our current facility
configuration, lower raw materials, operating and overhead costs
and additional Carnegie Way benefits would only partially offset
the unfavorable effects of lower average realized prices and
volumes.
We expect improved results for Other Businesses, primarily from
real estate, and we expect lower post retirement benefits
expenses.
Based on current market conditions, we expect approximately
$500 million of cash benefits from
working capital improvements in 2016, primarily related to better
inventory management.
We present adjusted net earnings (loss), adjusted net earnings
(loss) per diluted share, EBITDA and Adjusted EBITDA, which are
non-GAAP measures, as additional measurements to enhance the
understanding of our operating performance and facilitate a
comparison with that of our competitors.
A consolidated statement of operations (unaudited), consolidated
cash flow statement (unaudited), condensed consolidated balance
sheet (unaudited) and preliminary supplemental statistics
(unaudited) for U. S. Steel are attached.
The company will conduct a conference call on fourth quarter
earnings on Wednesday, January 27, at
8:30 a.m. Eastern Standard. To
listen to the webcast of the conference call, visit the
U. S. Steel website, www.ussteel.com, and click on
"Current Information" under the "Investors" section.
For more information on U. S. Steel, visit our website
at www.ussteel.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS
This press release contains information that may constitute
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. We intend the
forward-looking statements to be covered by the safe harbor
provisions for forward-looking statements in these sections.
Generally, we have identified such forward-looking statements by
using the words "believe," "expect," "intend," "estimate,"
"anticipate," "project," "target," "forecast," "aim," "will" and
similar expressions or by using future dates in connection with any
discussion of, among other things, operating performance, trends,
events or developments that we expect or anticipate will occur in
the future, statements relating to volume growth, share of sales
and earnings per share growth, and statements expressing general
views about future operating results. However, the absence of these
words or similar expressions does not mean that a statement is not
forward-looking. Forward-looking statements are not historical
facts, but instead represent only the Company's beliefs regarding
future events, many of which, by their nature, are inherently
uncertain and outside of the Company's control. It is possible that
the Company's actual results and financial condition may differ,
possibly materially, from the anticipated results and financial
condition indicated in these forward-looking statements. Management
believes that these forward-looking statements are reasonable as of
the time made. However, caution should be taken not to place undue
reliance on any such forward-looking statements because such
statements speak only as of the date when made. Our Company
undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law. In addition,
forward-looking statements are subject to certain risks and
uncertainties that could cause actual results to differ materially
from our Company's historical experience and our present
expectations or projections. These risks and uncertainties include,
but are not limited to the risks and uncertainties described in
"Item 1A. Risk Factors" and "Supplementary Data - Disclosures About
Forward-Looking Statements" in our Annual Report on Form 10-K
for the year ended December 31, 2014, and those described from
time to time in our future reports filed with the Securities and
Exchange Commission.
UNITED STATES
STEEL CORPORATION
|
STATEMENT OF
OPERATIONS (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Year Ended
|
|
|
|
Dec. 31
|
|
Sept. 30
|
|
Dec. 31
|
|
December
31,
|
(Dollars in millions,
except per share amounts)
|
2015
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
NET SALES
|
|
$
|
2,572
|
|
|
$
|
2,830
|
|
|
$
|
4,072
|
|
|
$
|
11,574
|
|
|
$
|
17,507
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES
(INCOME):
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
(excludes items shown below)
|
2,629
|
|
|
2,654
|
|
|
3,466
|
|
|
11,141
|
|
|
15,449
|
|
|
Selling, general and
administrative expenses
|
81
|
|
|
99
|
|
|
117
|
|
|
389
|
|
|
523
|
|
|
Depreciation,
depletion and amortization
|
129
|
|
|
136
|
|
|
138
|
|
|
547
|
|
|
627
|
|
|
Earnings from
investees
|
(9)
|
|
|
(6)
|
|
|
(39)
|
|
|
(38)
|
|
|
(142)
|
|
|
Losses associated
with U. S. Steel Canada Inc.
|
—
|
|
|
16
|
|
|
3
|
|
|
271
|
|
|
416
|
|
|
Restructuring and
other charges
|
47
|
|
|
103
|
|
|
2
|
|
|
322
|
|
|
256
|
|
|
Net gain on disposal
of assets
|
—
|
|
|
(1)
|
|
|
—
|
|
|
(2)
|
|
|
(23)
|
|
|
Other income,
net
|
1
|
|
|
(1)
|
|
|
(12)
|
|
|
(1)
|
|
|
(12)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses
|
2,878
|
|
|
3,000
|
|
|
3,675
|
|
|
12,629
|
|
|
17,094
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(LOSS) EARNINGS
BEFORE INTEREST AND INCOME TAXES (EBIT)
|
(306)
|
|
|
(170)
|
|
|
397
|
|
|
(1,055)
|
|
|
413
|
|
Net interest and
other financial costs
|
87
|
|
|
53
|
|
|
50
|
|
|
257
|
|
|
243
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(LOSS) EARNINGS
BEFORE INCOME TAXES
|
(393)
|
|
|
(223)
|
|
|
347
|
|
|
(1,312)
|
|
|
170
|
|
Income tax provision
(benefit)
|
606
|
|
|
(50)
|
|
|
72
|
|
|
196
|
|
|
68
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
earnings
|
(999)
|
|
|
(173)
|
|
|
275
|
|
|
(1,508)
|
|
|
102
|
|
|
Less: Net loss
attributable to the
|
|
|
|
|
|
|
|
|
|
|
noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
NET (LOSS) EARNINGS
ATTRIBUTABLE TO
|
|
|
|
|
|
|
|
|
|
|
UNITED STATES STEEL
CORPORATION
|
$
|
(999)
|
|
|
$
|
(173)
|
|
|
$
|
275
|
|
|
$
|
(1,508)
|
|
|
$
|
102
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMON STOCK
DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) earnings
per share attributable to
|
|
|
|
|
|
|
|
|
|
United
States Steel Corporation stockholders:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(6.83)
|
|
|
$
|
(1.18)
|
|
|
$
|
1.89
|
|
|
$
|
(10.32)
|
|
|
$
|
0.71
|
|
|
Diluted
|
|
$
|
(6.83)
|
|
|
$
|
(1.18)
|
|
|
$
|
1.83
|
|
|
$
|
(10.32)
|
|
|
$
|
0.69
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares, in thousands
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
146,347
|
|
|
146,324
|
|
|
145,654
|
|
|
146,094
|
|
|
145,164
|
|
|
Diluted
|
|
146,347
|
|
|
146,324
|
|
|
150,481
|
|
|
146,094
|
|
|
152,103
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid per
common share
|
$
|
0.05
|
|
|
$
|
0.05
|
|
|
$
|
0.05
|
|
|
$
|
0.20
|
|
|
$
|
0.20
|
|
UNITED STATES
STEEL CORPORATION
|
CASH FLOW STATEMENT
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
|
|
|
|
December
31,
|
(Dollars in
millions)
|
|
2015
|
|
2014
|
Cash provided by
(used in) operating activities:
|
|
|
|
|
Net (loss)
earnings
|
|
$
|
(1,508)
|
|
|
$
|
102
|
|
|
Depreciation,
depletion and amortization
|
547
|
|
|
627
|
|
|
Losses associated
with U. S. Steel Canada Inc.
|
271
|
|
|
416
|
|
|
Restructuring and
other charges
|
322
|
|
|
256
|
|
|
Pensions and other
postretirement benefits
|
50
|
|
|
(235)
|
|
|
Deferred income
taxes
|
226
|
|
|
76
|
|
|
Net gain on disposal
of assets
|
(2)
|
|
|
(23)
|
|
|
Working capital
changes(a)
|
535
|
|
|
135
|
|
|
Income taxes
receivable/payable
|
6
|
|
|
161
|
|
|
Other operating
activities
|
(88)
|
|
|
38
|
|
|
|
Total
|
|
359
|
|
|
1,553
|
|
|
|
|
|
|
|
|
Cash (used in)
provided by investing activities:
|
|
|
|
|
Capital
expenditures(a)
|
|
(500)
|
|
|
(480)
|
|
|
Acquisitions
|
|
(25)
|
|
|
—
|
|
|
Disposal of
assets
|
|
4
|
|
|
29
|
|
|
Other investing
activities
|
|
11
|
|
|
24
|
|
|
|
Total
|
|
(510)
|
|
|
(427)
|
|
|
|
|
|
|
|
|
Cash (used in)
provided by financing activities:
|
|
|
|
|
Repayment of
long-term debt
|
|
(379)
|
|
|
(325)
|
|
|
Receipts from
exercise of stock options
|
1
|
|
|
13
|
|
|
Dividends
paid
|
|
(29)
|
|
|
(29)
|
|
|
|
Total
|
|
(407)
|
|
|
(341)
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash
|
(41)
|
|
|
(35)
|
|
|
|
|
|
|
|
|
Net (decrease)
increase in cash and cash equivalents
|
(599)
|
|
|
750
|
|
Cash and cash
equivalents at beginning of the year
|
1,354
|
|
|
604
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at end of the period
|
$
|
755
|
|
|
$
|
1,354
|
|
(a) 2014
amounts have been revised to correct a prior period error that
resulted in additional capital expenditures of $61 million with the
offsetting
change to accounts payable.
|
UNITED STATES
STEEL CORPORATION
|
CONDENSED BALANCE
SHEET (Unaudited)
|
|
|
|
|
|
|
|
|
|
Dec. 31
|
|
Dec. 31
|
(Dollars in
millions)
|
|
2015
|
|
2014
|
Cash and cash
equivalents
|
$
|
755
|
|
|
$
|
1,354
|
|
Receivables,
net
|
1,078
|
|
|
1,942
|
|
Inventories
|
2,090
|
|
|
2,496
|
|
Other current
assets(a)
|
25
|
|
|
37
|
|
|
Total current
assets(a)
|
3,948
|
|
|
5,829
|
|
Property, plant and
equipment, net
|
4,411
|
|
|
4,574
|
|
Investments and
long-term receivables, net
|
645
|
|
|
939
|
|
Intangible assets,
net
|
196
|
|
|
204
|
|
Other
assets(a)
|
126
|
|
|
467
|
|
|
|
|
|
|
|
|
Total
assets(a)
|
|
$
|
9,326
|
|
|
$
|
12,013
|
|
|
|
|
|
|
|
Accounts
payable
|
$
|
1,508
|
|
|
$
|
2,001
|
|
Payroll and benefits
payable
|
462
|
|
|
1,003
|
|
Short-term debt and
current maturities of long-term debt
|
45
|
|
|
378
|
|
Other current
liabilities
|
149
|
|
|
187
|
|
|
Total current
liabilities
|
2,164
|
|
|
3,569
|
|
Long-term debt, less
unamortized discount
|
3,116
|
|
|
3,120
|
|
Employee
benefits
|
1,101
|
|
|
1,117
|
|
Other long-term
liabilities(a)
|
398
|
|
|
407
|
|
United States Steel
Corporation stockholders' equity
|
2,546
|
|
|
3,799
|
|
Noncontrolling
interests
|
1
|
|
|
1
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity(a)
|
$
|
9,326
|
|
|
$
|
12,013
|
|
(a) 2014
amounts have been adjusted to retroactively adopt Accounting
Standards Update 2015-17, Balance Sheet Classification of
Deferred Taxes, which requires that all deferred tax assets and
liabilities, along with any related valuation allowance, be
classified as noncurrent on the balance sheet.
|
UNITED STATES
STEEL CORPORATION
NON-GAAP FINANCIAL MEASURES
(Unaudited)
We present EBITDA, adjusted EBITDA, adjusted net earnings (loss)
and adjusted net earnings (loss) per diluted share, which are
non-GAAP measures, as an additional measurement to enhance the
understanding of our operating performance and facilitate a
comparison with that of our competitors. EBITDA is defined as
earnings (loss) before interest, income taxes, depreciation and
amortization. Adjusted EBITDA and adjusted net earnings (loss) are
not, however, intended as alternative measures of operating results
or cash flow from operations as determined in accordance with GAAP
and are not necessarily comparable to similarly titled measures
used by other companies.
RECONCILIATION OF
ADJUSTED EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Year Ended
|
|
|
Dec. 31
|
|
Sept. 30
|
|
Dec. 31
|
|
Dec. 31
|
|
Dec. 31
|
(Dollars in
millions)
|
2015
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Reconciliation to
(loss) earnings before interest and income taxes
(EBIT)
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
(13)
|
|
|
$
|
85
|
|
|
$
|
534
|
|
|
$
|
202
|
|
|
$
|
1,698
|
|
|
Losses associated
with U. S. Steel Canada Inc.
|
—
|
|
|
(16)
|
|
|
(3)
|
|
|
(271)
|
|
|
(416)
|
|
|
Restructuring and
other charges (a)
|
(47)
|
|
|
(12)
|
|
|
—
|
|
|
(78)
|
|
|
—
|
|
|
Loss on shutdown of
Fairfield Flat-Rolled operations
|
—
|
|
|
(91)
|
|
|
—
|
|
|
(91)
|
|
|
—
|
|
|
Loss on shutdown of
coke production facilities
|
—
|
|
|
—
|
|
|
—
|
|
|
(153)
|
|
|
—
|
|
|
Granite City Works
temporary idling charges
|
(99)
|
|
|
—
|
|
|
—
|
|
|
(99)
|
|
|
—
|
|
|
Impairment of equity
investment
|
(18)
|
|
|
—
|
|
|
—
|
|
|
(18)
|
|
|
—
|
|
|
Impairment of carbon
alloy facilities
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
(195)
|
|
|
Write-off of
pre-engineering costs at Keetac
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(37)
|
|
|
Gain on sale of real
estate assets
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
55
|
|
|
Litigation
reserves
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(70)
|
|
|
Loss on assets held
for sale
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(14)
|
|
|
Curtailment
gain
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19
|
|
|
EBITDA
|
(177)
|
|
|
(34)
|
|
|
535
|
|
|
(508)
|
|
|
1,040
|
|
|
Depreciation,
depletion and amortization expense
|
(129)
|
|
|
(136)
|
|
|
(138)
|
|
|
(547)
|
|
|
(627)
|
|
|
EBIT, as
reported
|
$
|
(306)
|
|
|
$
|
(170)
|
|
|
$
|
397
|
|
|
$
|
(1,055)
|
|
|
$
|
413
|
|
(a)
Consists primarily of employee related costs, including costs for
severance, supplemental unemployment benefits and continuation of
health care benefits.
|
UNITED STATES
STEEL CORPORATION
NON-GAAP FINANCIAL MEASURES
(Unaudited)
RECONCILIATION OF
ADJUSTED NET LOSS
|
|
|
Quarter
Ended(a)
|
|
Year
Ended(a)
|
|
|
Dec. 31
|
|
Sept. 30
|
|
Dec. 31
|
|
Dec. 31
|
|
Dec. 31
|
(Dollars in millions,
except per share amounts)
|
2015
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Reconciliation to
net (loss) earnings attributable to United States Steel
Corporation
|
|
|
|
|
|
|
|
|
|
|
Adjusted net (loss)
earnings attributable to United States Steel Corporation
|
$
|
(33)
|
|
|
$
|
(103)
|
|
|
$
|
274
|
|
|
$
|
(262)
|
|
|
$
|
676
|
|
|
Losses associated
with U. S. Steel Canada Inc.
|
—
|
|
|
(10)
|
|
|
(1)
|
|
|
(145)
|
|
|
(385)
|
|
|
Restructuring and
other charges (b)
|
(47)
|
|
|
(7)
|
|
|
—
|
|
|
(64)
|
|
|
—
|
|
|
Loss on shutdown of
Fairfield Flat-Rolled operations
|
—
|
|
|
(53)
|
|
|
—
|
|
|
(53)
|
|
|
—
|
|
|
Loss on shutdown of
coke production facilities
|
—
|
|
|
—
|
|
|
—
|
|
|
(65)
|
|
|
—
|
|
|
Granite City Works
temporary idling charges
|
(99)
|
|
|
—
|
|
|
—
|
|
|
(99)
|
|
|
—
|
|
|
Impairment of equity
investment
|
(18)
|
|
|
—
|
|
|
—
|
|
|
(18)
|
|
|
—
|
|
|
Loss on retirement of
senior convertible notes
|
(36)
|
|
|
—
|
|
|
—
|
|
|
(36)
|
|
|
—
|
|
|
Deferred tax asset
valuation allowance
|
(766)
|
|
|
—
|
|
|
—
|
|
|
(766)
|
|
|
—
|
|
|
Impairment of carbon
alloy facilities
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
(161)
|
|
|
Write-off of
pre-engineering costs at Keetac
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(30)
|
|
|
Gain on sale of real
estate assets
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
45
|
|
|
Litigation
reserves
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(46)
|
|
|
Loss on assets held
for sale
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9)
|
|
|
Curtailment
gain
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|
Total Adjustments
|
(966)
|
|
|
(70)
|
|
|
1
|
|
|
(1,246)
|
|
|
(574)
|
|
|
Net (loss) earnings
attributable to United States Steel Corporation, as
reported
|
$
|
(999)
|
|
|
$
|
(173)
|
|
|
$
|
275
|
|
|
$
|
(1,508)
|
|
|
102
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to
diluted net (loss) earnings per share
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted net
(loss) earnings per share
|
$
|
(0.23)
|
|
|
$
|
(0.70)
|
|
|
$
|
1.82
|
|
|
$
|
(1.79)
|
|
|
$
|
4.47
|
|
|
Losses associated
with U. S. Steel Canada Inc.
|
—
|
|
|
(0.07)
|
|
|
(0.01)
|
|
|
(0.99)
|
|
|
(2.52)
|
|
|
Restructuring and
other charges (b)
|
(0.32)
|
|
|
(0.05)
|
|
|
—
|
|
|
(0.44)
|
|
|
—
|
|
|
Loss on shutdown of
Fairfield Flat-Rolled operations
|
—
|
|
|
(0.36)
|
|
|
—
|
|
|
(0.37)
|
|
|
—
|
|
|
Loss on shutdown of
coke production facilities
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.44)
|
|
|
—
|
|
|
Granite City Works
temporary idling charges
|
(0.68)
|
|
|
—
|
|
|
—
|
|
|
(0.68)
|
|
|
—
|
|
|
Impairment of equity
investment
|
(0.12)
|
|
|
—
|
|
|
—
|
|
|
(0.12)
|
|
|
—
|
|
|
Loss on retirement of
senior convertible notes
|
(0.25)
|
|
|
—
|
|
|
—
|
|
|
(0.25)
|
|
|
—
|
|
|
Deferred tax asset
valuation allowance
|
(5.23)
|
|
|
—
|
|
|
—
|
|
|
(5.24)
|
|
|
—
|
|
|
Impairment of carbon
alloy facilities
|
—
|
|
|
—
|
|
|
0.02
|
|
|
—
|
|
|
(1.06)
|
|
|
Write-off of
pre-engineering costs at Keetac
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.21)
|
|
|
Gain on sale of real
estate assets
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.30
|
|
|
Litigation
reserves
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.31)
|
|
|
Loss on assets held
for sale
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.06)
|
|
|
Curtailment
gain
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.08
|
|
|
Total adjustments
|
(6.60)
|
|
|
(0.48)
|
|
|
0.01
|
|
|
(8.53)
|
|
|
(3.78)
|
|
|
Diluted net loss per
share, as reported
|
$
|
(6.83)
|
|
|
$
|
(1.18)
|
|
|
$
|
1.83
|
|
|
$
|
(10.32)
|
|
|
$
|
0.69
|
|
(a) The
adjustments included in this table have been tax affected at the
quarterly effective tax rate with the exception of the fourth
quarter of 2015 items which have been tax affected at a 0% tax rate
due to the recognition of a full valuation allowance in the fourth
quarter of 2015.
|
(b)
Consists primarily of employee related costs, including costs for
severance, supplemental unemployment benefits and continuation of
health care benefits.
|
UNITED STATES
STEEL CORPORATION
|
PRELIMINARY
SUPPLEMENTAL STATISTICS (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Year Ended
|
|
|
|
Dec. 31
|
|
Sept. 30
|
|
Dec. 31
|
|
December
31,
|
|
(Dollars in
millions)
|
2015
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
SEGMENT EARNINGS
(LOSS) BEFORE INTEREST AND INCOME TAXES (EBIT)
|
|
|
|
|
|
|
|
|
|
|
|
Flat-Rolled
|
$
|
(88)
|
|
|
$
|
(18)
|
|
|
$
|
247
|
|
|
$
|
(237)
|
|
|
$
|
709
|
|
|
|
U. S. Steel
Europe
|
6
|
|
|
18
|
|
|
34
|
|
|
81
|
|
|
133
|
|
|
|
Tubular
|
(64)
|
|
|
(50)
|
|
|
121
|
|
|
(179)
|
|
|
261
|
|
|
|
Other
Businesses
|
9
|
|
|
10
|
|
|
18
|
|
|
33
|
|
|
82
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Segment
EBIT
|
(137)
|
|
|
(40)
|
|
|
420
|
|
|
(302)
|
|
|
1,185
|
|
|
|
Postretirement
benefit expense
|
(5)
|
|
|
(11)
|
|
|
(24)
|
|
|
(43)
|
|
|
(114)
|
|
|
|
Other items not
allocated to segments:
|
|
|
|
|
|
|
|
|
|
|
|
Losses associated with U. S.
Steel Canada Inc.
|
—
|
|
|
(16)
|
|
|
(3)
|
|
|
(271)
|
|
|
(416)
|
|
|
|
Restructuring and other
charges
|
(47)
|
|
|
(12)
|
|
|
—
|
|
|
(78)
|
|
|
—
|
|
|
|
Loss on shutdown of
Fairfield Flat-Rolled
operations
|
—
|
|
|
(91)
|
|
|
—
|
|
|
(91)
|
|
|
—
|
|
|
|
Loss on shutdown of coke
production facilities
|
—
|
|
|
—
|
|
|
—
|
|
|
(153)
|
|
|
—
|
|
|
|
Granite City Works temporary
idling charges
|
(99)
|
|
|
—
|
|
|
—
|
|
|
(99)
|
|
|
—
|
|
|
|
Impairment of equity
investment
|
(18)
|
|
|
—
|
|
|
—
|
|
|
(18)
|
|
|
—
|
|
|
|
Impairment of carbon alloy
facilities
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
(195)
|
|
|
|
Write-off of pre-engineering
costs at Keetac
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(37)
|
|
|
|
Gain on sale of real estate
assets
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
55
|
|
|
|
Litigation
reserves
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(70)
|
|
|
|
Loss on assets held for
sale
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(14)
|
|
|
|
Curtailment gain
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT
|
$
|
(306)
|
|
|
$
|
(170)
|
|
|
$
|
397
|
|
|
$
|
(1,055)
|
|
|
$
|
413
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL
EXPENDITURES
|
|
|
|
|
|
|
|
|
|
|
|
Flat-Rolled(a)
|
$
|
84
|
|
|
$
|
72
|
|
|
$
|
135
|
|
|
$
|
280
|
|
|
$
|
322
|
|
|
|
U. S. Steel
Europe
|
32
|
|
|
33
|
|
|
16
|
|
|
110
|
|
|
74
|
|
|
|
Tubular
|
27
|
|
|
35
|
|
|
16
|
|
|
102
|
|
|
76
|
|
|
|
Other
Businesses
|
3
|
|
|
2
|
|
|
2
|
|
|
8
|
|
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total(a)
|
$
|
146
|
|
|
$
|
142
|
|
|
$
|
169
|
|
|
$
|
500
|
|
(b)
|
$
|
480
|
|
(b)
|
(a) Prior
period amounts have been revised to correct a prior period error
that resulted in additional capital expenditures of $9 million for
the quarter ended September 30, 2015 and additional capital
expenditures of $32 million and $61 million for the quarter and
year ended December 31, 2014 respectively.
|
(b)
Excludes the non-cash increase in accrued capital expenditures of
$59 million and $12 million for the years ended December 31, 2015,
and 2014, respectively. The 2014 amount was revised to
correct a prior period error that resulted in a reduction to the
non-cash increase in accrued capital expenditures of $61
million.
|
UNITED STATES
STEEL CORPORATION
|
PRELIMINARY
SUPPLEMENTAL STATISTICS (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Year Ended
|
|
|
|
|
Dec. 31
|
|
Sept. 30
|
|
Dec. 31
|
|
December
31,
|
|
|
|
|
2015
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
OPERATING
STATISTICS
|
|
|
|
|
|
|
|
|
|
|
Average realized
price: (a)
|
|
|
|
|
|
|
|
|
|
|
|
Flat-Rolled ($/net
ton)
|
642
|
|
674
|
|
775
|
|
695
|
|
772
|
|
|
Flat-Rolled U.S. Facilities ($/net ton) (b)
|
642
|
|
674
|
|
775
|
|
695
|
|
782
|
|
|
U. S. Steel Europe
($/net ton)
|
477
|
|
516
|
|
600
|
|
516
|
|
667
|
|
|
U.
S. Steel Europe (euro/net ton)
|
435
|
|
464
|
|
480
|
|
464
|
|
502
|
|
|
Tubular ($/net
ton)
|
1,273
|
|
1,264
|
|
1,625
|
|
1,464
|
|
1,538
|
|
Steel Shipments
(thousands of net tons): (a)
|
|
|
|
|
|
|
|
|
|
|
|
Flat-Rolled
|
2,591
|
|
2,676
|
|
3,015
|
|
10,595
|
|
13,908
|
|
|
Flat-Rolled U.S. Facilities (b)
|
2,591
|
|
2,676
|
|
3,015
|
|
10,595
|
|
12,376
|
|
|
U. S. Steel
Europe
|
982
|
|
1,020
|
|
1,108
|
|
4,357
|
|
4,179
|
|
|
Tubular
|
127
|
|
154
|
|
448
|
|
593
|
|
1,744
|
|
|
|
Total Steel
Shipments
|
3,700
|
|
3,850
|
|
4,571
|
|
15,545
|
|
19,831
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intersegment
Shipments (thousands of net tons):
|
|
|
|
|
|
|
|
|
|
|
|
Flat-Rolled to
Tubular
|
35
|
|
137
|
|
381
|
|
416
|
|
1,712
|
|
|
U. S. Steel Europe to
Flat-Rolled
|
—
|
|
—
|
|
—
|
|
—
|
|
75
|
|
Raw Steel Production
(thousands of net tons):
|
|
|
|
|
|
|
|
|
|
|
|
Flat-Rolled
|
2,421
|
|
3,240
|
|
3,664
|
|
11,337
|
|
16,962
|
|
|
Flat-Rolled U.S. Facilities (b)
|
2,421
|
|
3,240
|
|
3,664
|
|
11,337
|
|
15,218
|
|
|
U. S. Steel
Europe
|
1,054
|
|
1,133
|
|
1,313
|
|
4,669
|
|
4,788
|
|
Raw Steel Capability
Utilization: (c)
|
|
|
|
|
|
|
|
|
|
|
|
Flat-Rolled
|
57 %
|
|
66 %
|
|
75 %
|
|
60 %
|
|
80 %
|
|
|
Flat-Rolled U.S. Facilities (d)
|
57 %
|
|
66 %
|
|
75 %
|
|
60 %
|
|
78 %
|
|
|
U. S. Steel
Europe
|
84 %
|
|
90 %
|
|
104 %
|
|
93 %
|
|
96 %
|
(a)
Excludes intersegment shipments.
|
(b)
Excludes U. S. Steel Canada Inc. for all periods
presented.
|
(c) Based
on annual raw steel production capability of 17.0 million net tons
for Flat-Rolled and 5.0 million net tons for U. S. Steel
Europe. Prior to the permanent shutdown of the blast furnace
and associated steelmaking operations, along with most of the
flat-rolled finishing operations at Fairfield Works late in the the
third quarter of 2015, annual raw steel production capability for
Flat-Rolled was 19.4 million net tons. Prior to the CCAA
filing and deconsolidation of U. S. Steel Canada Inc. on September
16, 2014, annual raw steel production capability for Flat-Rolled
was 22.0 million net tons.
|
(d)
AISI capability utilization rates include our U.S. facilities (Gary
Works, Great Lakes Works, Mon Valley Works, Granite City Works and
Fairfield Works).
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/united-states-steel-corporation-reports-2015-fourth-quarter-and-full-year-results-with-strong-liquidity-and-positive-operating-cash-flow-under-challenging-market-conditions-300210129.html
SOURCE United States Steel Corporation