United States Steel Corporation (NYSE: X) today provided third
quarter 2023 adjusted net earnings per diluted share guidance of
$1.10 to $1.15. Third quarter 2023 adjusted EBITDA is expected to
be approximately $550 million.
Commenting on third quarter guidance, President and Chief
Executive Officer David B. Burritt said, “We are on track to safely
deliver a strong third quarter, with each of our operating segments
outperforming earlier estimates and contributing to a healthy
adjusted EBITDA for the company. A more resilient commercial
portfolio and management actions driving higher cost benefits are
resulting in better-than-expected performance this quarter. Today’s
guidance also reflects the expected impact on third quarter
financial results from the United Autoworkers union strike
announced earlier this month. Consistent with actions taken in 2022
to balance our melt capacity with our order book, we will
temporarily idle blast furnace ‘B’ at Granite City Works and are
reallocating volumes to other domestic facilities to efficiently
meet customer demand.”
Burritt concluded, “We are executing our Best for All strategy
as we advance our portfolio of in-flight capital projects on-time
and on-budget. The start-up this quarter of the non-grain oriented
electrical steel line at Big River Steel continues as planned with
first coil expected by the end of the month. Meanwhile, our
recently completed pig iron machine at Gary Works is consistently
delivering low-cost pig iron to our electric arc furnaces at Big
River Steel. Notably, our balance sheet remains strong, as we fund
these strategic initiatives while generating cash flow from
operations. We expect to end the third quarter with cash on hand of
approximately $3 billion. Total liquidity is expected to exceed $5
billion for the seventh consecutive quarter.”
Third Quarter Adjusted EBITDA Commentary
The Flat-Rolled segment’s adjusted EBITDA is expected to be
broadly in-line with the second quarter. While spot prices declined
sequentially, average selling prices are expected to be slightly
higher than previously anticipated on our July earnings call, which
is a key driver to the better-than-expected performance in this
segment. Additionally, the segment’s diverse customer base has kept
its order book resilient.
The Mini Mill segment's adjusted EBITDA is expected to be lower
than the second quarter. While selling prices moderated during the
quarter, segment results are expected to reflect better customer
volume performance than previously anticipated and benefit from
lower raw material costs. EBITDA margins are expected to remain
resilient in the low-to-mid teens.
The European segment’s adjusted EBITDA is expected to be lower
than the second quarter. Economic headwinds in the region and
typical seasonal slowdowns are expected to result in lower average
selling prices and a decline in shipment volumes. These headwinds
are expected to be partially offset by lower raw material costs in
the quarter.
The Tubular segment’s adjusted EBITDA is expected to be lower
than the second quarter, although remain well above historical
levels. Softer market prices and demand as distributor inventory
rebalances are expected to be the primary drivers of sequentially
weaker EBITDA.
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 and 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.
UNITED STATES STEEL
CORPORATION
NON-GAAP FINANCIAL MEASURES
RECONCILIATION OF ADJUSTED EBITDA
GUIDANCE
(Dollars in millions)
Reconciliation to Projected Adjusted
EBITDA Included in Guidance
Q3 2023
Projected net earnings attributable to
United States Steel Corporation included in guidance
$
245
Estimated income tax provision
85
Estimated net interest and other financial
costs (income)
(60
)
Estimated depreciation, depletion, and
amortization
230
Projected EBITDA included in guidance
$
500
Estimated adjustments
50
Projected adjusted EBITDA included in
guidance
$
550
UNITED STATES STEEL
CORPORATION
NON-GAAP FINANCIAL MEASURES
RECONCILIATION OF ADJUSTED NET
EARNINGS GUIDANCE
(Dollars in millions, except per share
amounts)
Reconciliation to Projected Adjusted
Net Earnings Attributable to U. S. Steel Included in
Guidance
Q3 2023
Projected net earnings attributable to
United States Steel Corporation included in guidance
$
245
Estimated adjustments
35
Projected adjusted net earnings
attributable to United States Steel Corporation included in
guidance
$
280
Reconciliation to Projected
Adjusted Net Earnings Per Diluted Share Included in
Guidance
Q3 2023
Projected net earnings per diluted share
included in guidance (mid-point of guidance)
$
0.98
Estimated adjustments
0.14
Projected adjusted net earnings per
diluted share included in guidance (mid-point of guidance)
$
1.12
Note: Excludes the impact of the Company's quarterly adjustment
related to the surplus VEBA assets. See Note 18 in the Company's
Annual Report on Form 10-K for the year ended December 31, 2022 for
an explanation of the surplus VEBA assets. This item will not
impact adjusted EBITDA, adjusted net earnings or adjusted net
earnings per diluted share. Separately, net earnings do not include
2022 tax return-to-provision adjustments which will be measured at
quarter-end.
Note Regarding Non-GAAP Financial Measures
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, adjusted net earnings per diluted share
and adjusted EBITDA are non-GAAP measures that exclude certain
charges that are not part of the Company’s core operations such as
restructuring or asset impairments (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 and believes these
measures are 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 are
not necessarily comparable to similarly titled measures used by
other companies.
2023-030
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.
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version on businesswire.com: https://www.businesswire.com/news/home/20230918142668/en/
Arista E. Joyner Manager Financial Communications T – (412)
433-3994 E – aejoyner@uss.com Emily Chieng General Manager Investor
Relations T – (412) 618-9554 E – ecchieng@uss.com
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