- Net earnings of $91 million, or $0.35 per diluted
share
- Adjusted net earnings of $283 million, or $1.08 per diluted
share
- Adjusted EBITDA of $551 million
- Liquidity of $2.909 billion, including cash of $753
million
United States Steel Corporation (NYSE: X) reported first quarter
2021 net earnings of $91 million, or $0.35 per diluted share.
Adjusted net earnings was $283 million, or $1.08 per diluted share.
This compares to first quarter 2020 net loss of $391 million, or
$2.30 per diluted share. Adjusted net loss for first quarter 2020
was $123 million, or $0.73 per diluted share.
Earnings Highlights
Three Months Ended
March 31,
(Dollars in millions, except per share
amounts)
2021
2020
Net Sales
$
3,664
$
2,748
Segment earnings (loss) before interest
and income taxes
Flat-Rolled
$
146
$
(35
)
Mini Mill (a)
132
—
U. S. Steel Europe
105
(14
)
Tubular (b)
(29
)
(48
)
Other Businesses
8
1
Total segment earnings (loss) before
interest and income taxes
$
362
$
(96
)
Other items not allocated to segments
63
(279
)
Earnings (loss) before interest and
income taxes
$
425
$
(375
)
Net interest and other financial
costs
333
35
Income tax provision (benefit)
1
(19
)
Net earnings (loss)
$
91
$
(391
)
Earnings (loss) per diluted
share
$
0.35
$
(2.30
)
Adjusted net earnings (loss)
(c)
$
283
(123
)
Adjusted net earnings (loss) per
diluted share (c)
$
1.08
$
(0.73
)
Adjusted earnings (loss) before
interest, income taxes, depreciation and amortization (EBITDA)
(c)
$
551
64
(a) Mini Mill segment, added after January
15, 2021 with the purchase of the remaining equity interest in Big
River Steel, does not include the newly constructed electric arc
(EAF) at our Fairfield Tubular Operations in Fairfield,
Alabama.
(b) The Fairfield EAF is included in the
Tubular segment.
(c) Please refer to the non-GAAP Financial
Measures section of this document for the reconciliation of these
amounts.
“Our optimism in the strength of our business is clearly
confirmed in our first quarter performance,” said U. S. Steel
President and Chief Executive Officer David B. Burritt. “Our first
quarter adjusted EBITDA of $551 million reflects robust customer
demand and purposeful management actions that are delivering strong
results. We are benefiting from our well-timed acquisition of the
remaining stake in Big River Steel which delivered 32% EBITDA
margins and drove an approximately 300 basis point contribution to
enterprise adjusted EBITDA margin in the quarter. A strong market
and our disciplined approach to capital allocation position us well
to translate earnings into cash flow.”
*****
The Company will conduct a conference call on first quarter 2021
earnings on Friday, April 30, 2021 at 8:30 a.m. EDT. To listen to
the webcast of the conference call, and to access the company's
slide presentation, visit the U. S. Steel website, www.ussteel.com,
and click on the “Investors” section. Replays of the conference
call will be available on the website after 10:30 a.m. on April 30,
2021.
UNITED STATES STEEL
CORPORATION
PRELIMINARY SUPPLEMENTAL
STATISTICS (Unaudited)
Three Months Ended
March 31,
2021
2020
OPERATING STATISTICS
Average realized price: ($/net ton unless
otherwise noted) (a)
Flat-Rolled
888
711
Mini Mill (b)
967
—
U. S. Steel Europe
748
611
U. S. Steel Europe (€/net ton)
620
554
Tubular
1,372
1,283
Steel shipments (thousands of net tons):
(a)
Flat-Rolled
2,332
2,509
Mini Mill (b)
447
—
U. S. Steel Europe
1,043
801
Tubular
89
187
Total Steel Shipments
3,911
3,497
Intersegment steel (unless otherwise
noted) shipments (thousands of net tons):
Flat-Rolled to Tubular
—
92
Flat-Rolled to USSE (iron ore pellets and
fines)
216
—
Mini Mill (b) to Flat-Rolled
61
—
Raw steel production (thousands of net
tons):
Flat-Rolled
2,581
3,148
Mini Mill (b)
510
—
U. S. Steel Europe
1,197
882
Tubular (c)
93
—
Raw steel capability utilization: (d)
Flat-Rolled
62
%
74
%
Mini Mill (b)
75
%
—
%
U. S. Steel Europe
97
%
71
%
Tubular
42
%
—
%
CAPITAL EXPENDITURES (dollars in
millions)
Flat-Rolled
$
74
$
192
Mini Mill (b)
36
—
U. S. Steel Europe
14
34
Tubular
12
54
Other Businesses
—
2
Total
$
136
$
282
(a) Excludes intersegment shipments.
(b) Mini Mill segment added after January
15, 2021 with the purchase of the remaining equity interest in Big
River Steel.
(c) Tubular segment raw steel added in
October 2020 with the start-up of the new electric arc furnace.
(d) Based on annual raw steel production
capability of 17.0 million net tons for Flat-Rolled, 3.3 million
for Mini Mill, 5.0 million net tons for U. S. Steel Europe and 0.9
million for Tubular.
UNITED STATES STEEL
CORPORATION
CONDENSED STATEMENT OF OPERATIONS
(Unaudited)
Three Months Ended
March 31,
(Dollars in millions, except per share
amounts)
2021
2020
NET SALES
$
3,664
$
2,748
OPERATING EXPENSES (INCOME):
Cost of sales
3,080
2,605
Selling, general and administrative
expenses
96
72
Depreciation, depletion and
amortization
189
160
(Earnings) loss from investees
(14
)
8
Asset impairment charges
—
263
Gain on equity investee transactions
(111
)
(31
)
Restructuring and other charges
6
41
Other (gains) losses, net
(7
)
5
Total operating expenses
3,239
3,123
EARNINGS (LOSS) BEFORE INTEREST AND INCOME
TAXES
425
(375
)
Net interest and other financial costs
333
35
EARNINGS (LOSS) BEFORE INCOME TAXES
92
(410
)
Income tax provision (benefit)
1
(19
)
Net earnings (loss)
91
(391
)
Net earnings attributable to
noncontrolling interests
—
—
NET EARNINGS (LOSS) ATTRIBUTABLE TO UNITED
STATES STEEL CORPORATION
$
91
$
(391
)
COMMON STOCK DATA:
Net earnings (loss) per share attributable
to
United States Steel Corporation
stockholders:
Basic
$
0.36
$
(2.30
)
Diluted
$
0.35
$
(2.30
)
Weighted average shares, in thousands
Basic
249,351
170,224
Diluted
261,969
170,224
Dividends paid per common share
$
0.01
$
0.01
UNITED STATES STEEL
CORPORATION
CONDENSED CASH FLOW STATEMENT
(Unaudited)
Three Months Ended
March 31,
(Dollars in millions)
2021
2020
Cash provided by (used in) operating
activities:
Net earnings (loss)
$
91
$
(391
)
Depreciation, depletion and
amortization
189
160
Asset impairment charges
—
263
Gain on equity investee transactions
(111
)
(31
)
Restructuring and other charges
6
41
Loss on debt extinguishment
255
—
Pensions and other postretirement
benefits
(25
)
(1
)
Deferred income taxes
3
6
Working capital changes
(274
)
(162
)
Income taxes receivable/payable
3
3
Other operating activities
(26
)
(30
)
Total
111
(142
)
Cash used in investing activities:
Capital expenditures
(136
)
(282
)
Acquisition of Big River Steel, net of
cash acquired
(625
)
—
Proceeds from sale of assets
—
1
Proceeds from sale of ownership interests
in equity investees
—
8
Other investing activities
(1
)
(4
)
Total
(762
)
(277
)
Cash (used in) provided by financing
activities:
Repayment of short-term debt
(180
)
—
Revolving credit facilities - borrowings,
net of financing costs
50
1,202
Revolving credit facilities -
repayments
(671
)
(281
)
Issuance of long-term debt, net of
financing costs
826
67
Repayment of long-term debt
(1,379
)
(2
)
Proceeds from public offering of common
stock
791
—
Other financing activities
(10
)
(3
)
Total
(573
)
983
Effect of exchange rate changes on
cash
(12
)
(6
)
Net (decrease) increase in cash, cash
equivalents and restricted cash
(1,236
)
558
Cash, cash equivalents and restricted cash
at beginning of the year
2,118
939
Cash, cash equivalents and restricted cash
at end of the period
$
882
$
1,497
UNITED STATES STEEL
CORPORATION
CONDENSED BALANCE SHEET
(Unaudited)
March 31,
December 31,
(Dollars in millions)
2021
2020
Cash and cash equivalents
$
753
$
1,985
Receivables, net
1,619
994
Inventories
1,750
1,402
Other current assets
128
51
Total current assets
4,250
4,432
Operating lease assets
210
214
Property, plant and equipment, net
7,563
5,444
Investments and long-term receivables,
net
545
1,177
Intangible assets, net
539
129
Goodwill
909
4
Other noncurrent assets
673
659
Total assets
$
14,689
$
12,059
Accounts payable and other accrued
liabilities
2,528
1,884
Payroll and benefits payable
285
308
Short-term debt and current maturities of
long-term debt
45
192
Other current liabilities
286
272
Total current liabilities
3,144
2,656
Noncurrent operating lease liabilities
161
163
Long-term debt, less unamortized discount
and debt issuance costs
5,787
4,695
Employee benefits
288
322
Other long-term liabilities
589
344
United States Steel Corporation
stockholders' equity
4,627
3,786
Noncontrolling interests
93
93
Total liabilities and stockholders'
equity
$
14,689
$
12,059
UNITED STATES STEEL
CORPORATION
NON-GAAP FINANCIAL MEASURES
RECONCILIATION OF ADJUSTED NET
EARNINGS (LOSS)
Three Months Ended
March 31,
(Dollars in millions, except per share
amounts) (a)
2021
2020
Reconciliation to adjusted net earnings
(loss) attributable to United States Steel Corporation
Net earnings (loss) attributable to United
States Steel Corporation
$
91
$
(391
)
Debt extinguishment
255
—
Big River Steel - inventory step-up
amortization
24
—
Big River Steel - unrealized losses
9
—
Big River Steel - acquisition costs
9
—
Restructuring and other charges
6
41
Gain on previously held investment in Big
River Steel
(111
)
—
Asset impairment charge
—
263
Gain on previously held investment in
UPI
—
(25
)
Big River Steel options and forward
adjustments
—
(11
)
Total adjustments
192
268
Adjusted net earnings (loss) attributable
to United States Steel Corporation
$
283
(123
)
Reconciliation to adjusted diluted net
earnings (loss) per share
Diluted net earnings (loss) per share
$
0.35
$
(2.30
)
Debt extinguishment
0.98
—
Big River Steel - inventory step-up
amortization
0.09
—
Big River Steel - unrealized losses
0.03
—
Big River Steel - acquisition costs
0.03
—
Restructuring and other charges
0.02
0.23
Gain on previously held investment in Big
River Steel
(0.42
)
—
Asset impairment charge
—
1.54
Gain on previously held investment in
UPI
—
(0.14
)
Big River Steel options and forward
adjustments
—
(0.06
)
Total adjustments
0.73
1.57
Adjusted diluted net earnings (loss) per
share
$
1.08
$
(0.73
)
(a) The adjustments included in this table
for the three months ended March 31, 2021 have not been tax
effected due to the full valuation allowance on our domestic
deferred tax assets. The adjustments included in this table for the
three months ended March 31, 2020 have been tax effected for our
European operations and not tax effected for our U.S. operations
due to the full valuation allowance on our domestic deferred tax
assets.
UNITED STATES STEEL
CORPORATION
NON-GAAP FINANCIAL MEASURES
RECONCILIATION OF ADJUSTED
EBITDA
Three Months Ended
March 31,
(Dollars in millions)
2021
2020
Reconciliation to Adjusted EBITDA
Net earnings (loss) attributable to United
States Steel Corporation
$
91
$
(391
)
Income tax provision (benefit)
1
(19
)
Net interest and other financial costs
333
35
Depreciation, depletion and amortization
expense
189
160
EBITDA
614
(215
)
Big River Steel - inventory step-up
amortization
24
—
Big River Steel - unrealized losses
9
—
Big River Steel - acquisition costs
9
—
Restructuring and other charges
6
41
Gain on previously held investment in Big
River Steel
(111
)
—
Asset impairment charge
—
263
Gain on previously held investment in
UPI
—
(25
)
Adjusted EBITDA
$
551
$
64
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) and adjusted net earnings (loss)
per diluted share are non-GAAP measures that exclude the effects of
items that include: debt extinguishment, Big River Steel -
inventory step-up amortization, Big River Steel - unrealized
losses, Big River Steel - acquisition costs, restructuring and
other charges, gain on previously held investment in Big River
Steel, asset impairment charge, gain on previously held investment
in UPI and Big River Steel options and forward adjustments
(Adjustment Items). Adjusted EBITDA is also a non-GAAP measure that
excludes the effects of certain Adjustment Items. 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 effects of events 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. 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,”
“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,
anticipated disruptions to our operations and industry due to the
COVID-19 pandemic, changes in global supply and demand conditions
and prices for our products, international trade duties and other
aspects of international trade policy, the integration of Big River
Steel in our existing business, business strategies related to the
combined business 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
this report and in “Item 1A. Risk Factors” in our Annual Report on
Form 10-K for the year ended December 31, 2020, our Quarterly
Reports on Form 10-Q 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 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, the United States Steel Corporation is a
Fortune 250 company and a leading steel producer. Together with its
subsidiary Big River Steel and an unwavering focus on safety, the
company’s customer-centric Best of BothSM world-competitive
integrated and mini mill technology 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 26.2 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/20210429006089/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