United States Steel Corporation (X) (“U. S. Steel”) announced today
that it is implementing an enhanced operating model and
organizational structure to accelerate the company’s strategic
transformation and better serve its customers, to be effective Jan.
1, 2020. These initiatives reduce costs and more closely align U.
S. Steel’s corporate structure with the company’s previously
announced strategic investments in leading technology and advanced
manufacturing, including the recently announced purchase of a
minority interest in Big River Steel, the newest and most advanced
flat-rolled mini mill in North America, with a clear path to
consolidation.
The realignment of U. S. Steel’s leadership team
around more nimble and efficient executive functions, notably to
sharpen focus on operational and commercial excellence and promote
technological innovation, will enable the company to establish a
more competitive cost structure with enhanced capabilities to serve
priority customers in strategic markets. Additionally, this
enhanced operating model will create a new, differentiated U. S.
Steel with a team that is charged with leading the execution of the
strategy and increasing profitability. It also will further unlock
the value of U. S. Steel’s announced investments in Big River Steel
and at Mon Valley Works and Gary Works to drive profitable growth,
deliver capital and operational cash improvements, and position U.
S. Steel to continue to be an industry leader in delivering
high-quality, value-added products.
U. S. Steel President and Chief Executive
Officer David B. Burritt said, “Our enhanced leadership team
structure is the right next step to help U. S. Steel achieve its
ambitious strategy to create the leading integrated and mini mill
steel company with a world competitive, ‘best of both’ footprint to
better serve our customers. We are intensely focused on improving
our capabilities to win in strategic markets, reducing structural
costs with a leaner footprint and attracting and investing in the
best talent that share our S.T.E.E.L. Principles. We have been
investing in building a footprint of world-class assets and with
today’s announcement we will become a more focused, agile
organization with a world-class leadership team ideally structured
to capitalize on market opportunities and position us for
success.”
Separately, and unrelated to the enhanced
operating model, U. S. Steel also announced today that Sara A.
Greenstein, Senior Vice President of Consumer Solutions, has
resigned effective Oct. 11, 2019, to assume the role of chief
executive officer of a publicly traded company. Joe Smous, General
Manager, Construction and Converters, has been appointed interim
Head of Consumer Solutions, effective Oct. 11, 2019, and will
report directly to Burritt. Also, effective Oct. 11, program
management of the construction of the endless casting and rolling
line at Mon Valley Works, as well as corporate communications, will
also report directly to the CEO.
Burritt continued, “Sara has made tremendous
contributions to our company, both to our customers and our
people. She has provided great leadership at the Mon Valley
and was a key player in developing the endless casting and rolling
investment we announced in May. I am excited for her next
chapter as well as for the recognition of the caliber of U. S.
Steel’s executive team. All of us at U. S. Steel thank her
for her efforts and wish her the best in her next endeavor.”
In a separate press release issued today, the
company announced that Christine (Christie) S. Breves, currently
Senior Vice President, Manufacturing Support and Chief Supply Chain
Officer, has been appointed Chief Financial Officer of U. S. Steel,
effective Nov. 4, 2019. Kevin P. Bradley, current Executive Vice
President & Chief Financial Officer of U. S. Steel, is
resigning and will remain with the company as Executive Vice
President and Adviser to the CEO to provide transitional support
through the end of 2019. Breves will retain her current
responsibilities through the end of the year, most of which will be
realigned with the new organizational model effective Jan. 1, as
described below.
The following individuals will remain members of
the U. S. Steel Senior Vice President Executive Team, effective
Jan. 1, 2020, all reporting directly to Burritt:
BUSINESS LEADERS:
Scott Buckiso, currently Senior
Vice President, Automotive Solutions, has been named Chief
Manufacturing Officer North American Flat-rolled (NAFR) segment.
Scott will lead all NAFR production facility activities with a
focus on safety, quality, delivery, and cost for customers and
stockholders. Scott continues to be responsible for implementing U.
S. Steel’s advanced high strength steel coating line at the PRO-TEC
joint venture and will assume responsibility for the execution of
the remaining strategic projects that will create a world-class hot
strip mill at the company’s Gary Works facility. Scott
will also assume leadership for the company’s logistics services
organization; Transtar, U. S. Steel’s short-line railroad
subsidiary; sales and operations planning (S&OP); engineering;
and corporate quality.
Doug Matthews, currently Senior
Vice President, Industrial, Service Center, Mining Solutions and
Tubular, has been named Chief Commercial & Technology Officer.
Doug will lead all NAFR commercial activities and integrate all
innovation, research, development, and information technology in
North America with a focus on customer satisfaction, new business,
market share growth, new technology and digitization acceleration.
In addition, he will continue to provide leadership to the Tubular
and Mining businesses, including the world-class EAF under
construction in Alabama.
Jim Bruno, Senior Vice
President, European Solutions and President, U. S. Steel Košice,
will continue to lead all aspects of European commercial and
operating activities, including the world-class electrical steel
Dynamo line currently under construction at USSK, as President of
U. S. Steel Europe.
FUNCTIONAL SUPPORT LEADERS:
Christie Breves, currently
Senior Vice President, Manufacturing Support and Chief Supply Chain
Officer, will assume the role and responsibilities of Chief
Financial Officer, effective Nov. 4. Following the Jan. 1
reorganization, Breves will retain responsibility for procurement
and cash management, along with the responsibilities of the
principal financial officer function.
Rich Fruehauf, currently Senior
Vice President, Strategic Planning and Corporate Development, has
been named Chief Strategy and Development Officer. Rich will
continue to lead Strategy, Government Affairs, Environmental
Affairs and Sustainability to ensure delivery of identified
synergies through a leaner footprint with more sustainable
development focus.
Duane Holloway will continue to
lead all aspects of the General Counsel function, including ethics
and compliance, during this period of rapid change as General
Counsel, Chief Ethics & Compliance Officer and Corporate
Secretary.
Barry Melnkovic will continue
to lead all aspects of talent management, as well as labor
relations and payroll, to ensure the company attracts and invests
in the best talent to serve customers while rewarding employees as
Chief Human Resources Officer.
ABOUT UNITED STATES STEEL CORPORATION
U. S. Steel Corporation, headquartered in
Pittsburgh, Pa., is a leading integrated steel producer and Fortune
250 company with major operations in the United States and Central
Europe. For more information about U. S. Steel, please visit
www.ussteel.com.
FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking
statements" within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934.
Words such as, but not limited to, "believes," "expects,"
"anticipates," "estimates," "intends," "plans," "could," "may,"
"will," "should," and similar expressions are intended to identify
forward-looking statements. Forward-looking statements in this
release include, among other things, statements about potential
benefits of the proposed investment and transaction with Big River
Steel announced on Oct. 1, 2019 (the “Transaction”), organizational
changes and other strategic transactions; anticipated cost savings;
potential capital and operational cash improvements; U. S. Steel’s
plans, objectives, expectations and intentions; the financial
condition, results of operations and business of the proposed joint
venture with Big River Steel; the joint venture’s products and
potential; U. S. Steel’s future ability or plans to take ownership
of the joint venture with Big River Steel as wholly owned
subsidiary; U. S. Steel’s ability to obtain financing for the
Transaction or other strategic projects at anticipated interest
rates or at all; and the anticipated timing of closing of the
Transaction. Risks and uncertainties include, among other things,
risks related to the satisfaction of the conditions to closing the
Transaction in the anticipated timeframe or at all and the
possibility that the Transaction does not close; risks related to
the ability to realize the anticipated benefits of the Transaction,
including the possibility that the expected benefits and cost
savings from the proposed Transaction or the capital and
operational cash improvements will not be realized or will not be
realized within the expected time period; risks related to the
satisfaction of the conditions to closing a future call option
transaction for the joint venture (including the failure to obtain
necessary regulatory approvals); and the risk that the businesses
will not be integrated successfully following exercise of the call
option; disruption from the transaction making it more difficult to
maintain business and operational relationships; negative effects
of the announcement or the consummation of the proposed Transaction
on the market price of U. S. Steel’s common stock; significant
transaction costs; unknown liabilities; the risk of litigation
and/or regulatory actions related to the proposed Transaction;
other business effects, including the effects of industry, market,
economic, political or regulatory conditions; future exchange and
interest rates; changes in tax and other laws, regulations, rates
and policies; future business combinations or disposals; and
competitive developments. All forward-looking statements rely
on a number of assumptions, estimates and data concerning future
results and events and are subject to a number of uncertainties and
other factors, that could cause actual results to differ materially
from those reflected in such statements. Accordingly, U. S. Steel
cautions that the forward-looking statements contained herein are
qualified by these and other important factors and uncertainties
that could cause results to differ materially from those reflected
by such statements. For more information on additional potential
risk factors, please review U. S. Steel’s filings with the SEC,
including, but not limited to, U. S. Steel’s Annual Report on Form
10-K, Quarterly Reports on Form 10-Q and its Current Reports on
Form 8-K.
CONTACTS:MediaMeghan CoxManagerCorporate CommunicationsT - (412)
433-6777E - mmcox@uss.com |
Investors/AnalystsKevin LewisGeneral ManagerInvestor RelationsT -
(412) 433-6935E - klewis@uss.com |
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