- Second quarter 2023 net earnings of $477 million, or $1.89
per diluted share
- Second quarter 2023 adjusted net earnings of $483 million,
or $1.92 per diluted share
- Second quarter 2023 adjusted EBITDA of $804 million
United States Steel Corporation (NYSE: X) reported second
quarter 2023 net earnings of $477 million, or $1.89 per diluted
share. Adjusted net earnings was $483 million, or $1.92 per diluted
share. This compares to second quarter 2022 net earnings of $978
million, or $3.42 per diluted share. Adjusted net earnings for the
second quarter 2022 was $1,116 million, or $3.89 per diluted
share.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20230727467846/en/
U. S. Steel Delivers Another Strong
Quarter; Best for All® Strategy On-Track
Commenting on the second quarter's performance, U. S. Steel
President and Chief Executive Officer David B. Burritt said, “We
are pleased to deliver strong results for the quarter, supported by
healthy sequential growth in the Mini Mill segment in both adjusted
EBITDA and EBITDA margin. We generated $713 million of cash from
operations in the quarter and free cash flow of $101 million,
further strengthening our balance sheet. Our in-flight strategic
projects remain fully funded and we are prioritizing direct returns
consistent with our capital allocation framework, with $86 million
returned to stockholders through buybacks and dividends in the
second quarter.”
Burritt continued, “We are executing exceptionally well against
our strategic initiatives, with all in-flight projects progressing
on-time and on-budget. Notably, our non-grain oriented, or NGO,
electrical steel line at Big River Steel is currently being
commissioned and on track to start-up later in the third quarter.
Customer demand has been robust for our NGO steels and we are
pleased to announce that we've already secured our first customer
orders in both industrial and electric vehicle markets.”
Commenting on the Company's Best for All strategy, Burritt
concluded, “We are an essential partner to the countries and
communities where we operate. Notably, we are supplying customers
with cutting edge steels that are mined, melted and made in the
USA. Our strategy is expanding our competitive advantages and
generating growth and returns for stockholders as we strengthen
domestic supply chains and support advanced manufacturing returning
to our shores. We remain bullish for U. S. Steel.”
Earnings Highlights
Three Months Ended
June 30,
Six Months Ended
June 30,
(Dollars in millions, except per share
amounts)
2023
2022
2023
2022
Net Sales
$
5,008
$
6,290
$
9,478
$
11,524
Segment earnings (loss) before interest
and income taxes
Flat-Rolled
$
231
$
793
$
224
$
1,322
Mini Mill
132
270
144
548
U. S. Steel Europe
72
280
38
544
Tubular
157
107
389
184
Other
(12
)
(12
)
(9
)
(5
)
Total segment earnings before interest
and income taxes
$
580
$
1,438
$
786
$
2,593
Other items not allocated to segments
(16
)
(184
)
(33
)
(221
)
Earnings before interest and income
taxes
$
564
$
1,254
$
753
$
2,372
Net interest and other financial
benefits
(57
)
(8
)
(118
)
(18
)
Income tax expense
144
284
195
530
Net earnings
$
477
$
978
$
676
$
1,860
Earnings per diluted share
$
1.89
$
3.42
$
2.67
$
6.45
Adjusted net earnings (a)
$
483
$
1,116
$
678
$
2,026
Adjusted net earnings per diluted share
(a)
$
1.92
$
3.89
$
2.68
$
7.01
Adjusted earnings before interest,
income taxes, depreciation and amortization (EBITDA) (a)
$
804
$
1,636
$
1,231
$
2,989
(a) Please refer to the non-GAAP Financial
Measures section of this document for the reconciliation of these
amounts. The prior year was retroactively adjusted to reflect the
reclassification of stock-based compensation expense.
*****
The Company will conduct a conference call on the second quarter
earnings on Friday, July 28, 2023, at 8:30 a.m. Eastern. To listen
to the webcast of the conference call and to access the Company's
slide presentation, visit the U. S. Steel website, www.ussteel.com,
and click on the “Investors” section. Replay will be available on
the website after 10:30 a.m. on July 28, 2023.
UNITED STATES STEEL
CORPORATION
PRELIMINARY SUPPLEMENTAL
STATISTICS (Unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2023
2022
2023
2022
OPERATING STATISTICS
Average realized price: ($/net ton unless
otherwise noted) (a)
Flat-Rolled
1,088
1,339
1,050
1,352
Mini Mill
1,011
1,331
897
1,349
U. S. Steel Europe
965
1,217
939
1,162
U. S. Steel Europe (€/net ton)
886
1,142
868
1,064
Tubular
3,493
2,727
3,636
2,543
Steel shipments (thousands of net tons):
(a)
Flat-Rolled
2,235
2,365
4,513
4,312
Mini Mill
587
615
1,246
1,122
U. S. Steel Europe
1,034
1,067
1,917
2,177
Tubular
111
136
242
264
Total steel shipments
3,967
4,183
7,918
7,875
Intersegment steel (unless otherwise
noted) shipments (thousands of net tons):
Mini Mill to Flat-Rolled
142
110
225
199
Flat-Rolled to Mini Mill
—
23
—
23
Flat-Rolled to Mini Mill (pig iron)
86
—
115
—
Flat-Rolled to USSE (b)
159
82
458
82
Raw steel production (thousands of net
tons):
Flat-Rolled
2,529
2,424
4,922
4,629
Mini Mill
749
750
1,508
1,351
U. S. Steel Europe
1,213
1,216
2,305
2,304
Tubular
129
168
300
324
Raw steel capability utilization: (c)
Flat-Rolled
77
%
74
%
75
%
71
%
Mini Mill
91
%
91
%
92
%
83
%
U. S. Steel Europe
97
%
98
%
93
%
93
%
Tubular
57
%
75
%
67
%
73
%
CAPITAL EXPENDITURES (dollars in
millions)
Flat-Rolled
104
112
243
229
Mini Mill
488
179
1,051
390
U. S. Steel Europe
16
17
42
34
Tubular
5
3
17
7
Other Businesses
—
—
—
—
Total
$
613
$
311
$
1,353
$
660
(a) Excludes intersegment shipments.
(b) Consists of coal in 2023 and iron ore
pellets and fines in 2022.
(c) Based on annual raw steel production
capability of 13.2 million net tons for Flat-Rolled, 3.3 million
net tons for Mini Mill, 5.0 million net tons for U. S. Steel Europe
and 0.9 million net tons for Tubular.
UNITED STATES STEEL
CORPORATION
CONDENSED STATEMENT OF OPERATIONS
(Unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
(Dollars in millions, except per share
amounts)
2023
2022
2023
2022
Net Sales
$
5,008
$
6,290
$
9,478
$
11,524
Operating expenses (income):
Cost of sales
4,161
4,661
8,114
8,484
Selling, general and administrative
expenses
103
112
202
229
Depreciation, depletion and
amortization
224
198
445
396
Earnings from investees
(38
)
(95
)
(25
)
(131
)
Asset impairment charges
—
151
4
157
Restructuring and other charges
2
17
3
34
Other gains, net
(8
)
(8
)
(18
)
(17
)
Total operating expenses
4,444
5,036
8,725
9,152
Earnings before interest and income
taxes
564
1,254
753
2,372
Net interest and other financial
benefits
(57
)
(8
)
(118
)
(18
)
Earnings before income taxes
621
1,262
871
2,390
Income tax expense
144
284
195
530
Net earnings
477
978
676
1,860
Less: Net earnings attributable to
noncontrolling interests
—
—
—
—
Net earnings attributable to United
States Steel Corporation
$
477
$
978
$
676
$
1,860
COMMON STOCK DATA:
Net earnings per share attributable to
United States Steel Corporation Stockholders
Basic
$
2.12
$
3.80
$
2.99
$
7.17
Diluted
$
1.89
$
3.42
$
2.67
$
6.45
Weighted average shares, in thousands
Basic
225,538
257,267
226,430
259,348
Diluted
254,155
286,680
255,757
289,246
Dividends paid per common share
$
0.05
$
0.05
$
0.10
$
0.10
UNITED STATES STEEL
CORPORATION
CONDENSED CASH FLOW STATEMENT
(Unaudited)
Six Months Ended June 30,
(Dollars in millions)
2023
2022
Increase (decrease) in cash, cash
equivalents and restricted cash
Operating activities:
Net earnings
$
676
$
1,860
Depreciation, depletion and
amortization
445
396
Asset impairment charges
4
157
Restructuring and other charges
3
34
Pensions and other postretirement
benefits
(84
)
(106
)
Deferred income taxes
135
247
Working capital changes
(111
)
(925
)
Income taxes receivable/payable
48
229
Other operating activities
(222
)
(216
)
Net cash provided by operating
activities
894
1,676
Investing activities:
Capital expenditures
(1,353
)
(660
)
Proceeds from cost reimbursement
government grants
—
53
Proceeds from sale of assets
3
12
Other investing activities
—
(7
)
Net cash used in investing activities
(1,350
)
(602
)
Financing activities:
Issuance of long-term debt, net of
financing costs
238
4
Repayment of long-term debt
(20
)
(73
)
Common stock repurchased
(150
)
(522
)
Proceeds from government incentives
—
82
Other financing activities
(42
)
(39
)
Net cash provided by (used in) financing
activities
26
(548
)
Effect of exchange rate changes on
cash
8
(27
)
Net (decrease) increase in cash, cash
equivalents and restricted cash
(422
)
499
Cash, cash equivalents and restricted cash
at beginning of year
3,539
2,600
Cash, cash equivalents and restricted cash
at end of period
$
3,117
$
3,099
UNITED STATES STEEL
CORPORATION
CONDENSED BALANCE SHEET
(Unaudited)
June 30,
December 31,
(Dollars in millions)
2023
2022
Cash and cash equivalents
$
3,080
$
3,504
Receivables, net
1,864
1,635
Inventories
2,540
2,359
Other current assets
351
368
Total current assets
7,835
7,866
Operating lease assets
129
146
Property, plant and equipment, net
9,436
8,492
Investments and long-term receivables,
net
832
840
Intangibles, net
457
478
Goodwill
920
920
Other noncurrent assets
700
716
Total assets
$
20,309
$
19,458
Accounts payable and other accrued
liabilities
3,112
3,016
Payroll and benefits payable
457
493
Short-term debt and current maturities of
long-term debt
98
63
Other current liabilities
405
387
Total current liabilities
4,072
3,959
Noncurrent operating lease liabilities
90
105
Long-term debt, less unamortized discount
and debt issuance costs
4,153
3,914
Employee benefits
139
209
Deferred income tax liabilities
576
456
Other long-term liabilities
461
504
United States Steel Corporation
stockholders' equity
10,725
10,218
Noncontrolling interests
93
93
Total liabilities and stockholders'
equity
$
20,309
$
19,458
UNITED STATES STEEL
CORPORATION
NON-GAAP FINANCIAL MEASURES
RECONCILIATION OF ADJUSTED NET
EARNINGS
Three Months Ended June 30,
Six Months Ended June 30,
(In millions of dollars)
2023
2022
2023
2022
Net earnings and diluted net earnings per
share attributable to United States Steel Corporation, as
reported
$
477
$
1.89
$
978
$
3.42
$
676
$
2.67
$
1,860
$
6.45
Restructuring and other charges
2
17
3
34
Stock-based compensation expense (a)
12
16
23
32
VEBA asset surplus adjustment
(8
)
—
(30
)
—
Asset impairment charges
—
151
4
157
Environmental remediation charges
2
—
2
—
Other charges, net
—
—
1
(2
)
Adjusted pre-tax net earnings to United
States Steel Corporation
485
1,162
679
2,081
Tax impact of adjusted items (b)
(2
)
(46
)
(1
)
(55
)
Adjusted net earnings and diluted net
earnings per share attributable to United States Steel
Corporation
$
483
$
1.92
$
1,116
$
3.89
$
678
$
2.68
$
2,026
$
7.01
Weight average diluted ordinary shares
outstanding, in millions
254.2
286.7
255.8
289.2
(a) The prior year was retroactively
adjusted to reflect the reclassification of stock-based
compensation expense. The adjustment was $9 million, $17 million,
$12 million and $24 million, net of taxes, for the three and six
months ended June 30, 2023 and 2022, respectively.
(b) The tax impact of adjusted items for
the three months and six months ended June 30, 2023 is calculated
using a blended tax rate of 24%. The tax impact of adjusted items
for the three and six months ended June 30, 2022 was calculated
using a blended tax rate of 25%.
UNITED STATES STEEL
CORPORATION
NON-GAAP FINANCIAL MEASURES
RECONCILIATION OF ADJUSTED
EBITDA
Three Months Ended June 30,
Six Months Ended June 30,
(Dollars in millions)
2023
2022
2023
2022
Reconciliation to Adjusted EBITDA
Net earnings attributable to United States
Steel Corporation
$
477
$
978
$
676
$
1,860
Income tax expense
144
284
195
530
Net interest and other financial
benefits
(57
)
(8
)
(118
)
(18
)
Depreciation, depletion and amortization
expense
224
198
445
396
EBITDA
788
1,452
1,198
2,768
Restructuring and other charges
2
17
3
34
Stock-based compensation expense (a)
12
16
23
32
Asset impairment charges
—
151
4
157
Environmental remediation charges
2
—
2
—
Other charges, net
—
—
1
(2
)
Adjusted EBITDA
$
804
$
1,636
$
1,231
$
2,989
(a) The prior year was retroactively
adjusted to reflect the reclassification of stock-based
compensation expense.
UNITED STATES STEEL
CORPORATION
NON-GAAP FINANCIAL MEASURES
RECONCILIATION OF PAST TWELVE
MONTHS OF FREE AND INVESTABLE CASH FLOW
3rd
4th
1st
2nd
Quarter
Quarter
Quarter
Quarter
Total of the
(Dollars in millions)
2022
2022
2023
2023
Four Quarters
Net cash provided by operating
activities
$
1,074
$
755
$
181
$
713
$
2,723
Net cash used in investing activities
(463
)
(614
)
(738
)
(612
)
(2,427
)
Free cash flow
611
141
(557
)
101
296
Strategic capital expenditures
330
479
565
476
1,850
Investable free cash flow
$
941
$
620
$
8
$
577
$
2,146
We present adjusted net earnings, adjusted net earnings per
diluted share, earnings 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, 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 and adjusted net earnings per diluted
share are non-GAAP measures that exclude the effects of items that
include: restructuring and other charges, stock-based compensation
expense, VEBA asset surplus adjustment, asset impairment charges,
environmental remediation charges, tax impact of adjusted items and
other charges, net (Adjustment Items). Adjusted EBITDA is also a
non-GAAP measure that excludes the effects of certain Adjustment
Items. We present adjusted net earnings, adjusted net earnings 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 effects of events that can
obscure underlying trends. U. S. Steel's management considers
adjusted net earnings, adjusted net earnings 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, adjusted net
earnings 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, adjusted net earnings 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 Adjustment
Items when evaluating the Company’s financial performance. Adjusted
net earnings, adjusted net earnings per diluted share and adjusted
EBITDA should not be considered a substitute for net earnings,
earnings 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.
We also present free cash flow, a non-GAAP measure of cash
generated from operations after any investing activity and
investable free cash flow, a non-GAAP measure of cash generated
from operations, after any investing activity adjusted for
strategic capital expenditures. We believe that free cash flow and
investable free cash flow provides further insight into the
Company's overall utilization of cash. A condensed consolidated
statement of operations (unaudited), condensed consolidated cash
flow statement (unaudited), condensed consolidated balance sheet
(unaudited) and preliminary supplemental statistics (unaudited) for
U. S. Steel are attached.
CAUTIONARY NOTE REGARDING 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,”
“plan,” “goal,” “future,” “will,” “may,” and similar expressions or
by using future dates in connection with any discussion of, among
other things, the construction or operation of new or existing
facilities or operating capabilities, the timing, size and form of
share repurchase transactions, operating or financial 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, changes in the
global economic environment, including supply and demand
conditions, inflation, interest rates, supply chain disruptions and
changes in prices for our products, international trade duties and
other aspects of international trade policy, statements regarding
our future strategies, products and innovations, statements
regarding our greenhouse gas emissions reduction goals, statements
regarding existing or new regulations 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” in our Annual
report on Form 10-K for the year ended December 31, 2022 and those
described from time to time in our future reports filed with the
Securities and Exchange Commission.
References to “U. S. Steel,” “the Company,” “we,” “us,” and
“our” refer to United States Steel Corporation and its consolidated
subsidiaries, and references to “Big River Steel” refer to Big
River Steel Holdings LLC and its direct and indirect subsidiaries
unless otherwise indicated by the context.
###
Founded in 1901, United States Steel Corporation is a leading
steel producer. With an unwavering focus on safety, the Company’s
customer-centric Best for All® strategy is advancing a more secure,
sustainable future for U. S. Steel and its stakeholders. With a
renewed emphasis on innovation, U. S. Steel serves the automotive,
construction, appliance, energy, containers, and packaging
industries with high value-added steel products such as U. S.
Steel’s proprietary XG3® advanced high-strength steel. The Company
also maintains competitively advantaged iron ore production and has
an annual raw steelmaking capability of 22.4 million net tons. 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/20230727467846/en/
Arista Joyner Manager Corporate Communications T - (412)
433-3994 E - AEjoyner@uss.com
Kevin Lewis Vice President Finance T - (412) 433-6935 E -
KLewis@uss.com
US Steel (NYSE:X)
Historical Stock Chart
From Jun 2024 to Jul 2024
US Steel (NYSE:X)
Historical Stock Chart
From Jul 2023 to Jul 2024