- Third quarter 2024 net earnings of $119 million, or $0.48
per diluted share.
- Third quarter 2024 adjusted net earnings of $140 million, or
$0.56 per diluted share.
- Third quarter 2024 adjusted EBITDA of $319 million.
United States Steel Corporation (NYSE: X) reported third quarter
2024 net earnings of $119 million, or $0.48 per diluted share.
Adjusted net earnings was $140 million, or $0.56 per diluted share.
This compares to third quarter 2023 net earnings of $299 million,
or $1.20 per diluted share. Adjusted net earnings for the third
quarter 2023 was $350 million, or $1.40 per diluted share.
Commenting on the Company’s third quarter performance, U. S.
Steel President and Chief Executive Officer, David B. Burritt said,
“Third quarter adjusted EBITDA of $319 million demonstrated
resilience in our business model despite the weaker average selling
prices experienced across our operating segments. The North
American Flat-Rolled segment continued to benefit from a strong
commercial strategy that leveraged a diverse product mix and a
purposeful increase in contracted volumes across the end markets we
serve. Our Mini Mill segment, which was impacted by softening
market pricing, delivered 11% EBITDA margins when adjusting for $40
million in one-time start-up costs for strategic projects. USSE
earnings benefited from a one-time favorable adjustment related to
CO2 allocations, which offset pressures from a challenging demand
environment in Europe. Tubular earnings were weaker in the third
quarter, as expected, reflecting lower benchmark prices.”
Commenting on the Company’s strategic initiatives, Burritt
continued, “We are very pleased to announce that we achieved first
coil at Big River 2 (“BR2”), with the Big River team expecting to
begin shipments to customers during the fourth quarter. We are
excited to highlight photos of BR2 in the investor presentation
posted today on our website. Congratulations to the Big River team
on safely delivering over $4 billion of growth capital investments,
including the non-grain oriented (“NGO”) electrical steel line and
the dual Galvalume® / Galvanized coating line. Coupled with our
enhanced commercial strategy and recent investments made in the
North American Flat Rolled segment, we look forward to building
upon our more resilient earnings with increasing free cash
flow.”
Commenting on the Company’s transaction with Nippon Steel
Corporation, Burritt noted, “We continue to work towards closing by
year-end. Importantly, in September, the Board of Arbitration ruled
in favor of U. S. Steel under our basic labor agreement. We are
also pleased to see additional commitments from Nippon Steel, which
will build upon the existing benefits including the transfer of
technologies and further innovations from Nippon Steel's $500
million annual R&D spending, to further strengthen the merits
of the transaction. We look forward to delivering these benefits to
all of our stakeholders, especially to our hardworking men and
women in the Mon Valley and Gary plants, where Nippon Steel has
committed to invest at least $1.3 billion, increasing the total
capital commitment to at least $2.7 billion."
Q4 2024 Outlook
We expect fourth quarter adjusted EBITDA in the range of $225
million and $275 million. Our North American Flat-Rolled segment
results should decrease slightly, driven largely by lower lagging
average selling price expectations for the quarter. We expect an
improvement in Mini Mill segment results, even after accounting for
$25 million of related start-up and one-time construction costs at
BR2, reflecting an expected improvement in average selling prices.
In Europe, results are expected to be lower given the absence of
the positive CO2 allocations and weak underlying demand and pricing
conditions. Our Tubular segment results should be largely
consistent with the third quarter.
Earnings Highlights
Three Months Ended September
30,
Nine Months Ended September
30,
(Dollars in millions, except per share
amounts)
2024
2023
2024
2023
Net Sales
$
3,853
$
4,431
$
12,131
$
13,909
Segment earnings (loss) before interest
and income taxes
Flat-Rolled
$
106
$
225
$
323
$
449
Mini Mill
(28
)
42
99
186
U. S. Steel Europe
7
(13
)
13
25
Tubular
(4
)
87
82
476
Other
3
7
(3
)
(2
)
Total segment earnings before interest
and income taxes
$
84
$
348
$
514
$
1,134
Other items not allocated to segments
(36
)
(71
)
(131
)
(104
)
Earnings before interest and income
taxes
$
48
$
277
$
383
$
1,030
Net interest and other financial
benefits
(61
)
(64
)
(174
)
(182
)
Income tax (benefit) expense
(10
)
42
84
237
Net earnings
$
119
$
299
$
473
$
975
Earnings per diluted share
$
0.48
$
1.20
$
1.88
$
3.86
Adjusted net earnings (a)
$
140
$
350
$
557
$
1,028
Adjusted net earnings per diluted share
(a)
$
0.56
$
1.40
$
2.21
$
4.07
Adjusted earnings before interest,
income taxes, depreciation and amortization (EBITDA) (a)
$
319
$
578
$
1,176
$
1,809
(a) Please refer to the non-GAAP Financial
Measures section of this document for the reconciliation of these
amounts.
UNITED STATES STEEL
CORPORATION
PRELIMINARY SUPPLEMENTAL
STATISTICS (Unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
OPERATING STATISTICS
Average realized price: ($/net ton unless
otherwise noted) (a)
Flat-Rolled
993
1,036
1,030
1,045
Mini Mill
800
901
880
898
U. S. Steel Europe
802
852
818
910
U. S. Steel Europe (€/net ton)
730
783
753
840
Tubular
1,805
2,927
2,062
3,422
Steel shipments (thousands of net tons):
(a)
Flat-Rolled
1,905
2,159
5,999
6,672
Mini Mill
602
561
1,732
1,807
U. S. Steel Europe
899
958
2,846
2,875
Tubular
110
104
333
346
Total steel shipments
3,516
3,782
10,910
11,700
Intersegment steel (unless otherwise
noted) shipments (thousands of net tons):
Mini Mill to Flat-Rolled
84
145
288
370
Flat-Rolled to Mini Mill
2
2
3
2
Flat-Rolled to Mini Mill (pig iron)
83
95
248
210
Flat-Rolled to USSE (coal)
—
174
258
632
Raw steel production (thousands of net
tons):
Flat-Rolled
2,107
2,390
6,290
7,312
Mini Mill
732
693
2,174
2,201
U. S. Steel Europe
970
990
3,029
3,295
Tubular
159
111
422
411
Raw steel capability utilization: (b)
Flat-Rolled
63
%
72
%
63
%
74
%
Mini Mill
88
%
83
%
88
%
89
%
U. S. Steel Europe
77
%
79
%
81
%
88
%
Tubular
70
%
49
%
62
%
61
%
CAPITAL EXPENDITURES (dollars in
millions)
Flat-Rolled
114
132
378
375
Mini Mill
364
423
1,302
1,474
U. S. Steel Europe
27
24
82
66
Tubular
6
7
20
24
Other Businesses
—
—
—
—
Total
$
511
$
586
$
1,782
$
1,939
(a) Excludes intersegment shipments.
(b) 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 September
30,
Nine Months Ended September
30,
(Dollars in millions, except per share
amounts)
2024
2023
2024
2023
Net Sales
$
3,853
$
4,431
$
12,131
$
13,909
Operating expenses (income):
Cost of sales
3,448
3,838
10,742
11,952
Selling, general and administrative
expenses
104
118
328
320
Depreciation, depletion and
amortization
235
230
662
675
Earnings from investees
(17
)
(51
)
(76
)
(76
)
Asset impairment charges
—
—
19
4
Restructuring and other charges
5
18
11
21
Other losses (gains), net
30
1
62
(17
)
Total operating expenses
3,805
4,154
11,748
12,879
Earnings before interest and income
taxes
48
277
383
1,030
Net interest and other financial
benefits
(61
)
(64
)
(174
)
(182
)
Earnings before income taxes
109
341
557
1,212
Income tax (benefit) expense
(10
)
42
84
237
Net earnings
119
299
473
975
Less: Net earnings attributable to
noncontrolling interests
—
—
—
—
Net earnings attributable to United States
Steel Corporation
$
119
$
299
$
473
$
975
COMMON STOCK DATA:
Net earnings per share attributable to
United States Steel Corporation Stockholders
Basic
$
0.53
$
1.34
$
2.10
$
4.33
Diluted
$
0.48
$
1.20
$
1.88
$
3.86
Weighted average shares, in thousands
Basic
225,095
223,109
224,697
225,311
Diluted
254,060
253,070
254,124
255,080
Dividends paid per common share
$
0.05
$
0.05
$
0.15
$
0.15
UNITED STATES STEEL
CORPORATION
CONDENSED CASH FLOW STATEMENT
(Unaudited)
Nine Months Ended September
30,
Nine Months Ended September
30,
(Dollars in millions)
2024
2023
Increase (decrease) in cash, cash
equivalents and restricted cash
Operating activities:
Net earnings
$
473
$
975
Depreciation, depletion and
amortization
662
675
Asset impairment charges
19
4
Restructuring and other charges
11
21
Pensions and other postretirement
benefits
(99
)
(124
)
Active employee benefit investments
51
20
Deferred income taxes
141
275
Working capital changes
(204
)
227
Income taxes receivable/payable
(127
)
(86
)
Other operating activities
(216
)
(276
)
Net cash provided by operating
activities
711
1,711
Investing activities:
Capital expenditures
(1,782
)
(1,939
)
Proceeds from sale of assets
3
4
Other investing activities
(5
)
—
Net cash used in investing activities
(1,784
)
(1,935
)
Financing activities:
Issuance of long-term debt, net of
financing costs
—
241
Repayment of long-term debt
(46
)
(69
)
Common stock repurchased
—
(175
)
Other financing activities
(58
)
(50
)
Net cash used in financing activities
(104
)
(53
)
Effect of exchange rate changes on
cash
4
(3
)
Net decrease in cash, cash equivalents and
restricted cash
(1,173
)
(280
)
Cash, cash equivalents and restricted cash
at beginning of year
2,988
3,539
Cash, cash equivalents and restricted cash
at end of period
$
1,815
$
3,259
UNITED STATES STEEL
CORPORATION
CONDENSED BALANCE SHEET
(Unaudited)
September 30,
December 31,
(Dollars in millions)
2024
2023
Cash and cash equivalents
$
1,773
$
2,948
Receivables, net
1,649
1,548
Inventories
2,039
2,128
Other current assets
305
319
Total current assets
5,766
6,943
Operating lease assets
82
109
Property, plant and equipment, net
11,665
10,393
Investments and long-term receivables,
net
830
761
Intangibles, net
421
436
Goodwill
920
920
Other noncurrent assets
949
889
Total assets
$
20,633
$
20,451
Accounts payable and other accrued
liabilities
2,745
3,028
Payroll and benefits payable
321
442
Short-term debt and current maturities of
long-term debt
163
142
Other current liabilities
223
336
Total current liabilities
3,452
3,948
Noncurrent operating lease liabilities
51
73
Long-term debt, less unamortized discount
and debt issuance costs
4,068
4,080
Employee benefits
124
126
Deferred income tax liabilities
732
587
Other long-term liabilities
535
497
United States Steel Corporation
stockholders' equity
11,578
11,047
Noncontrolling interests
93
93
Total liabilities and stockholders'
equity
$
20,633
$
20,451
UNITED STATES STEEL
CORPORATION
NON-GAAP FINANCIAL MEASURES
RECONCILIATION OF ADJUSTED NET
EARNINGS
Three Months Ended September
30,
Nine Months Ended September
30,
(Dollars in millions)
2024
2023
2024
2023
Net earnings and diluted net earnings per
share attributable to United States Steel Corporation, as
reported
$
119
$
0.48
$
299
$
1.20
$
473
$
1.88
$
975
$
3.86
Restructuring and other charges
5
18
11
21
Stock-based compensation expense
10
14
37
37
Asset impairment charges
—
—
19
4
VEBA asset surplus adjustment
(9
)
(6
)
(21
)
(36
)
Environmental remediation charges
1
9
4
11
Strategic alternatives review process
costs
18
16
59
16
Granite City idling costs
—
14
—
14
Other charges, net
2
1
1
2
Adjusted pre-tax net earnings to United
States Steel Corporation
146
365
583
1,044
Tax impact of adjusted items (a)
(6
)
(15
)
(26
)
(16
)
Adjusted net earnings and diluted net
earnings per share attributable to United States Steel
Corporation
$
140
$
0.56
$
350
$
1.40
$
557
$
2.21
$
1,028
$
4.07
Weighted average diluted ordinary shares
outstanding, in millions
254.1
253.1
254.1
255.1
(a) The tax impact of adjusted items for
both the three and nine months ended September 30, 2024, and 2023
were calculated using a blended tax rate of 24%.
UNITED STATES STEEL
CORPORATION
NON-GAAP FINANCIAL MEASURES
RECONCILIATION OF ADJUSTED
EBITDA
Three Months Ended September
30,
Nine Months Ended September
30,
(Dollars in millions)
2024
2023
2024
2023
Reconciliation to Adjusted EBITDA
Net earnings attributable to United States
Steel Corporation
$
119
$
299
$
473
975
Income tax (benefit) expense
(10
)
42
84
237
Net interest and other financial
benefits
(61
)
(64
)
(174
)
(182
)
Depreciation, depletion and amortization
expense
235
230
662
675
EBITDA
283
507
1,045
1,705
Restructuring and other charges
5
18
11
21
Stock-based compensation expense
10
14
37
37
Asset impairment charges
—
—
19
4
Environmental remediation charges
1
9
4
11
Strategic alternatives review process
costs
18
16
59
16
Granite City idling costs
—
14
—
14
Other charges, net
2
—
1
1
Adjusted EBITDA
$
319
$
578
$
1,176
$
1,809
Net earnings margin (a)
3.1
%
6.7
%
3.9
%
7.0
%
Adjusted EBITDA margin (a)
8.3
%
13.0
%
9.7
%
13.0
%
(a) The net earnings and adjusted EBITDA
margins represent net earnings or adjusted EBITDA divided by net
sales.
UNITED STATES STEEL
CORPORATION
NON-GAAP FINANCIAL MEASURES
RECONCILIATION OF PAST TWELVE
MONTHS OF FREE AND INVESTABLE CASH FLOW
4th
1st
2nd
3rd
Quarter
Quarter
Quarter
Quarter
Total of the
(Dollars in millions)
2023
2024
2024
2024
Four Quarters
Net cash provided (used) by operating
activities
$
389
$
(28
)
$
474
$
265
$
1,100
Net cash used in investing activities
(633
)
(645
)
(630
)
(509
)
(2,417
)
Free cash flow
(244
)
(673
)
(156
)
(244
)
(1,317
)
Strategic capital expenditures
425
468
468
346
1,707
Investable free cash flow
$
181
$
(205
)
$
312
$
102
$
390
We present adjusted net earnings, adjusted net earnings per
diluted share, earnings before interest, income taxes, depreciation
and amortization (EBITDA), adjusted EBITDA and adjusted EBITDA
margin, 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, asset impairment charges, VEBA asset surplus adjustment,
environmental remediation charges, strategic alternatives review
process costs, Granite City idling costs, tax impact of adjusted
items and other charges, net (Adjustment Items). Adjusted EBITDA
and adjusted EBITDA margins are also non-GAAP measures that exclude
the effects of certain Adjustment Items. We present adjusted net
earnings, adjusted net earnings per diluted share, adjusted EBITDA
and adjusted EBITDA margin 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, adjusted EBITDA,
and adjusted EBITDA margin 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, adjusted EBITDA,
and adjusted EBITDA margin 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,
adjusted EBITDA, and adjusted EBITDA margin 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, adjusted
EBITDA, and adjusted EBITDA margin 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.
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 provide 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 regarding the Company and
Nippon Steel Corporation ("NSC") that may constitute
“forward-looking statements,” as that term is defined under the
Private Securities Litigation Reform Act of 1995 and other
securities laws, that are subject to risks and uncertainties. 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, statements expressing general views about future
operating or financial results, operating or financial performance,
trends, events or developments that we expect or anticipate will
occur in the future, anticipated cost savings, potential capital
and operational cash improvements and changes in the global
economic environment, the construction or operation of new or
existing facilities or capabilities, statements regarding our
greenhouse gas emissions reduction goals, as well as statements
regarding the proposed transaction between the Company and NSC,
including the timing of the completion of the transaction. However,
the absence of these words or similar expressions does not mean
that a statement is not forward-looking. Forward-looking statements
include all statements that are not historical facts, but instead
represent only the Company’s beliefs regarding future goals, plans
and expectations about our prospects for the future and other
events, many of which, by their nature, are inherently uncertain
and outside of the Company’s or NSC’s control. It is possible that
the Company’s or NSC’s actual results and financial condition may
differ, possibly materially, from the anticipated results and
financial condition indicated in these forward-looking statements.
Management of the Company 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. In addition, forward looking statements are
subject to certain risks and uncertainties that could cause actual
results to differ materially from the Company’s or NSC's historical
experience and our present expectations or projections. Risks and
uncertainties include without limitation: the ability of the
parties to consummate the proposed transaction on a timely basis or
at all; the timing, receipt and terms and conditions of any
required governmental and regulatory approvals of the proposed
transaction; the occurrence of any event, change or other
circumstances that could give rise to the termination of the
definitive agreement and plan of merger relating to the proposed
transaction (the “Merger Agreement”); the risk that the parties to
the Merger Agreement may not be able to satisfy the conditions to
the proposed transaction in a timely manner or at all; risks
related to disruption of management time from ongoing business
operations due to the proposed transaction; certain restrictions
during the pendency of the proposed transaction that may impact the
Company’s ability to pursue certain business opportunities or
strategic transactions; the risk that any announcements relating to
the proposed transaction could have adverse effects on the market
price of the Company’s common stock; the risk of any unexpected
costs or expenses resulting from the proposed transaction; the risk
of any litigation relating to the proposed transaction; the risk
that the proposed transaction and its announcement could have an
adverse effect on the ability of the Company or NSC to retain
customers and retain and hire key personnel and maintain
relationships with customers, suppliers, employees, stockholders
and other business relationships and on its operating results and
business generally; and the risk the pending proposed transaction
could distract management of the Company. The Company directs
readers to its Quarterly Report on Form 10-Q for the quarter ended
June 30, 2024 and Form 10-K for the year ended December 31, 2023,
and the other documents it files with the SEC for other risks
associated with the Company’s future performance. These documents
contain and identify important factors that could cause actual
results to differ materially from those contained in the
forward-looking statements. All information in this report is as of
the date above. The Company does not undertake any duty to update
any forward-looking statement to conform the statement to actual
results or changes in the Company’s expectations whether as a
result of new information, future events or otherwise, except as
required by law.
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 25.4 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.
©2024 U. S. Steel All Rights Reserved
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241031192271/en/
Corporate Communications T - (412) 433-1300 E - media@uss.com
Emily Chieng Investor Relations Officer T - (412) 618-9554 E -
ecchieng@uss.com
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