United States Steel Corporation (NYSE: X) today provided fourth
quarter 2020 guidance. Fourth quarter 2020 adjusted EBITDA is
expected to be approximately $55 million. The Company expects
fourth quarter 2020 adjusted diluted loss per share to be
approximately ($0.85).
“Flat-rolled customer demand in the U.S. and Europe has improved
throughout the fourth quarter, fueled by consumer-driven
end-markets such as automotive, appliance, and packaging,”
commented U. S. Steel President and Chief Executive Officer David
B. Burritt. “December’s performance has been particularly strong
driven by the flow-through of higher steel prices, more nimble
operations, and a continued focus on cost management. As a result,
we have line of sight to significantly improved financial
performance in 2021. Longer lead times, higher utilization rates,
and higher input costs reflect current healthy steel demand and
make us optimistic about the sustainability of today’s market
environment.”
Adjusted EBITDA Commentary
Our Flat-rolled segment is expected to generate positive EBITDA
in the fourth quarter. Our order book remains strong across key
strategic markets and higher steel prices are being more fully
reflected in our adjustable contract business. This market backdrop
informed our decision to restart blast furnace #4 at Gary Works and
iron ore production at our Keetac mine to ensure we continue to
satisfy strong customer demand. We expect to benefit from improved
efficiencies as we exit the year.
In Europe, customer demand continues to be strong. Improved
commercial performance and a focus on cost management are expected
to more than offset raw material headwinds from higher iron ore
prices. As a result, fourth quarter results should exceed third
quarter performance.
In Tubular, customer activity remains range bound. Higher rig
counts are not yet resulting in higher shipments as distributors
manage inventories into year-end. We remain focused on what we can
control, including the start-up of our electric arc furnace (EAF)
at Tubular where we produced first rounds for seamless pipe
production at the end of October. The in-sourcing of rounds
production is already beginning to improve the segment’s cost
structure in the fourth quarter.
Forward Looking Statements
This 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 those sections.
Generally, we have identified such forward-looking statements by
using the words “believe,” “expect,” “intend,” “estimate,”
“anticipate,” “project,” “target,” “forecast,” “aim,” "should,"
“will,” "may" 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
changes, share of sales and earnings per share changes, anticipated
cost savings, potential capital and operational cash improvements,
U. S. Steel's ability to take ownership of Big River Steel as a
wholly owned subsidiary, 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. The 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 the 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” in our Annual Report on Form 10-K for the
year ended December 31, 2019, our Quarterly Report on Form 10-Q for
the quarter ended September 30, 2020, and those described from time
to time in our future reports filed with the Securities and
Exchange Commission. References to "we," "us," "our," the
"Company," and "U. S. Steel," refer to United States Steel
Corporation and its consolidated subsidiaries.
UNITED STATES STEEL
CORPORATION
NON-GAAP FINANCIAL MEASURES
RECONCILIATION OF ADJUSTED EBITDA
GUIDANCE
(Dollars in millions)
Reconciliation to Projected Adjusted
EBITDA Included in Guidance
4Q 2020
Projected net loss attributable to United
States Steel Corporation included in guidance
$
(215)
Estimated income tax provision
10
Estimated net interest and other financial
costs
80
Estimated depreciation, depletion and
amortization
160
Projected EBITDA included in guidance
$
35
Estimated fourth quarter adjustments
20
Projected adjusted EBITDA included in
guidance
$
55
UNITED STATES STEEL
CORPORATION
NON-GAAP FINANCIAL MEASURES
RECONCILIATION OF ADJUSTED NET
LOSS GUIDANCE
(Dollars in millions, except per share
amounts)
Reconciliation to Projected Adjusted
Net Loss Attributable to U. S. Steel Included in Guidance
4Q 2020
Projected net loss attributable to United
States Steel Corporation included in guidance
$
(215)
Estimated fourth quarter adjustments
25
Projected adjusted net loss attributable
to United States Steel Corporation included in guidance
$
(190)
Reconciliation to Projected Adjusted
Diluted Net Loss Per Share Included in Guidance
4Q 2020
Projected diluted net loss per share
included in guidance
$
(0.96)
Estimated fourth quarter adjustments
0.11
Projected adjusted diluted net loss per
share included in guidance
$
(0.85)
Note: Excludes the impact of the Company’s quarterly adjustment
related to the Big River Steel put and call options. See Notes 5
and 20 in the Company’s Annual Report on Form 10-K for the year
ended December 31, 2019 for an explanation of the Big River Steel
put and call options. This item will not impact adjusted EBITDA,
adjusted net loss or adjusted diluted net loss per share. The
guidance also excludes the discrete impact of intraperiod tax
allocation primarily related to the annual remeasurement of our
pension and other post-employment benefit plans. This item will not
impact adjusted EBITDA.
Note Regarding Non-GAAP Financial Measures
We present adjusted net earnings (loss), adjusted net earnings
(loss) per diluted share, earnings (loss) before interest, income
taxes, depreciation and amortization (EBITDA) and adjusted EBITDA,
which are non-GAAP measures, as additional measurements to enhance
the understanding of our operating performance. We believe that
EBITDA, considered along with net earnings (loss), is a relevant
indicator of trends relating to our operating performance and
provides management and investors with additional information for
comparison of our operating results to the operating results of
other companies.
Adjusted net earnings (loss), adjusted net earnings (loss) per
diluted share and adjusted EBITDA are non-GAAP measures that
exclude the financial effects of restructuring charges and other
adjustments that are not part of the Company's core operations. We
present adjusted net earnings (loss), adjusted net earnings (loss)
per diluted share and adjusted EBITDA to enhance the understanding
of our ongoing operating performance and established trends
affecting our core operations, by excluding the financial effects
of restructuring charges and other adjustments that can obscure
underlying trends. U. S. Steel's management considers adjusted net
earnings (loss), adjusted net earnings (loss) per diluted share and
adjusted EBITDA as alternative measures of operating performance
and not alternative measures of the Company's liquidity. U. S.
Steel’s management considers adjusted net earnings (loss), adjusted
net earnings (loss) per diluted share and adjusted EBITDA useful to
investors by facilitating a comparison of our operating performance
to the operating performance of our competitors. Additionally, the
presentation of adjusted net earnings (loss), adjusted net earnings
(loss) per diluted share and adjusted EBITDA provides insight into
management’s view and assessment of the Company’s ongoing operating
performance, because management does not consider the adjusting
items when evaluating the Company’s financial performance. Adjusted
net earnings (loss), adjusted net earnings (loss) per diluted share
and adjusted EBITDA should not be considered a substitute for net
earnings (loss), earnings (loss) per diluted share or other
financial measures as computed in accordance with U.S. GAAP and is
not necessarily comparable to similarly titled measures used by
other companies.
Founded in 1901, the United States Steel Corporation is a
Fortune 250 company and leading integrated steel producer. With
extensive iron ore production and an annual raw steelmaking
capability of 23.6 million net tons, U. S. Steel produces high
value-added steel products for the automotive, infrastructure,
appliance, container, and energy industries. The company’s
customer-centric “Best of Both” world competitive integrated and
mini mill technology strategy is advancing a more secure,
sustainable future for U. S. Steel and its stakeholders. With
renewed emphasis on innovation and customer focus, the company
produces cutting-edge products such as U. S. Steel’s proprietary
XG3™ advanced high-strength steel. U. S. Steel is headquartered in
Pittsburgh, Pennsylvania, with world-class operations across the
United States and in Central Europe. For more information, please
visit www.ussteel.com.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201217006041/en/
John Ambler Vice President Corporate Communications T – (412)
433-2407 E – joambler@uss.com Kevin Lewis Vice President Investor
Relations T – (412) 433-6935 E – klewis@uss.com
US Steel (NYSE:X)
Historical Stock Chart
From Apr 2024 to May 2024
US Steel (NYSE:X)
Historical Stock Chart
From May 2023 to May 2024