- Third quarter net earnings of $490 million. Reported net
earnings per diluted share of $1.85
- Third quarter adjusted net earnings of $516 million.
Adjusted net earnings per diluted share of $1.95
- Third quarter adjusted EBITDA of $848 million
United States Steel Corporation (NYSE: X) reported third quarter
2022 net earnings of $490 million, or $1.85 per diluted share.
Adjusted net earnings for the third quarter 2022 was $516 million,
or $1.95 per diluted share and excluded the impact of restructuring
and other one-time items detailed in the reconciliation of adjusted
net earnings table. This compares to our all-time best record third
quarter 2021 net earnings of $2,002 million, or $6.97 per diluted
share. Adjusted net earnings for the third quarter 2021 was $1,638
million, or $5.70 per diluted share and excluded the impact of
one-time items detailed in the reconciliation of adjusted net
earnings table.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20221027005946/en/
Commenting on the third quarter 2022 performance, U. S. Steel
President and Chief Executive Officer David B. Burritt said, “We
delivered another solid quarter and are on pace for our second-best
financial year ever and a third consecutive year of record safety
performance. Continued profitability and prudent working capital
management resulted in healthy free cash flow that supported our
strategic initiatives. Our assets are running well to deliver
high-quality steel, safely and reliably to our customers.”
Burritt continued, “Demand headwinds persisted through the third
quarter. Across our integrated steelmaking mills, we responded
quickly with footprint actions aligning supply with the current
flat-rolled order book. The impact of these headwinds in our Mini
Mill and U. S. Steel Europe segments were worsened by temporarily
higher than normal raw material expenses in the quarter, as we
worked through inventories built in response to the Ukrainian
conflict. While we expect to work through these costlier raw
materials through year-end, we remain focused on the opportunity to
in-source Mini Mill metallics as a competitive cost advantage.
Results for U. S. Steel Europe were also negatively impacted by
escalating energy costs, which we expect will also remain high. Our
Tubular segment continued to deliver sequential improvements,
reliably serving strong demand in domestic energy end markets.”
Burritt concluded, “We are executing our Best for All® strategy
with confidence, supported by record cash of nearly $3.4 billion at
quarter-end and our strong balance sheet. At year-end, we expect
nearly 40% of our strategic investments to be complete and they
remain on-time and on-budget. These projects are expanding our
competitive advantages in pursuit of our goal to provide lower
carbon steel solutions for our customers with less capital
intensity while improving the free cash flow and margin performance
of the business.”
Earnings Highlights
Three Months Ended September
30,
Nine Months Ended September
30,
(Dollars in millions, except per share
amounts)
2022
2021
2022
2021
Net Sales
$
5,203
$
5,964
$
16,727
$
14,653
Segment earnings (loss) before interest
and income taxes
Flat-Rolled
505
1,015
1,795
1,740
Mini Mill (a)
1
424
549
840
U. S. Steel Europe
(32
)
394
512
706
Tubular
155
—
339
(29
)
Other
21
(2
)
16
20
Total segment earnings before interest
and income taxes
$
650
$
1,831
$
3,211
$
3,277
Other items not allocated to segments
(36
)
511
(225
)
524
Earnings before interest and income
taxes
$
614
$
2,342
$
2,986
$
3,801
Net interest and other financial
(benefits) costs
(30
)
80
(48
)
472
Income tax expense
154
260
684
224
Net earnings
$
490
$
2,002
$
2,350
$
3,105
Earnings per diluted share
$
1.85
$
6.97
$
8.38
$
11.13
Adjusted net earnings (b)
$
516
$
1,638
$
2,518
$
2,970
Adjusted net earnings per diluted share
(b)
$
1.95
$
5.70
$
8.98
$
10.64
Adjusted earnings before interest,
income taxes, depreciation and amortization (EBITDA) (b)
$
848
$
2,027
$
3,805
$
3,864
(a) The Mini Mill was segment added after
January 15, 2021 with the purchase of the remaining equity interest
in Big River Steel.
(b) Please refer to the non-GAAP Financial
Measures section of this document for the reconciliation of these
amounts.
*****
The Company will conduct a conference call on the third quarter
2022 earnings on Friday, October 28, 2022, 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 October 28, 2022.
UNITED STATES STEEL
CORPORATION
PRELIMINARY SUPPLEMENTAL
STATISTICS (Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2022
2021
2022
2021
OPERATING STATISTICS
Average realized price: ($/net ton unless
otherwise noted) (a)
Flat-Rolled
1,232
1,325
1,312
1,097
Mini Mill (b)
1,096
1,517
1,268
1,255
U. S. Steel Europe
1,021
1,143
1,121
932
U. S. Steel Europe (€/net ton)
1,013
969
1,049
779
Tubular
3,217
1,702
2,761
1,587
Steel shipments (thousands of net tons):
(a)
Flat-Rolled
2,176
2,328
6,488
6,986
Mini Mill (b)
529
608
1,651
1,671
U. S. Steel Europe
867
1,064
3,044
3,274
Tubular
126
123
390
317
Total Steel Shipments
3,698
4,123
11,573
12,248
Intersegment steel (unless otherwise
noted) shipments (thousands of net tons):
Flat-Rolled to USSE [iron ore (pellets and
fines) and coal]
62
—
144
—
Flat-Rolled to USSE
—
—
30
—
Flat-Rolled to Mini Mill
7
—
30
439
Mini Mill (b) to Flat-Rolled
53
114
252
300
Raw steel production (thousands of net
tons):
Flat-Rolled
2,265
2,634
6,894
7,700
Mini Mill (b)
616
750
1,967
2,007
U. S. Steel Europe
946
1,274
3,250
3,750
Tubular
173
117
497
324
Raw steel capability utilization: (c)
Flat-Rolled
68
%
61
%
70
%
61
%
Mini Mill (b)
74
%
90
%
80
%
86
%
U. S. Steel Europe
75
%
101
%
87
%
100
%
Tubular
76
%
52
%
74
%
48
%
CAPITAL EXPENDITURES (dollars in
millions)
Flat-Rolled
136
105
365
272
Mini Mill (b)
320
46
710
102
U. S. Steel Europe
19
13
53
39
Tubular
3
12
10
46
Other Businesses
—
—
—
1
Total
$
478
$
176
$
1,138
$
460
(a) Excludes intersegment shipments.
(b) The Mini Mill segment was added after
January 15, 2021 with the purchase of the remaining equity interest
in Big River Steel.
(c) 2022 based on annual raw steel
production capability of 13.2 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. 2021 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 September
30,
Nine Months Ended September
30,
(Dollars in millions, except per share
amounts)
2022
2021
2022
2021
Net Sales
$
5,203
$
5,964
$
16,727
$
14,653
Operating expenses (income):
Cost of sales
4,359
3,881
12,843
10,633
Selling, general and administrative
expenses
95
108
324
316
Depreciation, depletion and
amortization
198
196
594
587
Earnings from investees
(71
)
(57
)
(202
)
(106
)
Gain on sale of Transtar
—
(506
)
—
(506
)
Asset impairment charges
—
—
157
28
Gain on equity investee transactions
—
—
—
(111
)
Restructuring and other charges
23
—
57
37
Net (gain) loss on sale of assets
(6
)
7
(10
)
(8
)
Other gains, net
(9
)
(7
)
(22
)
(18
)
Total operating expenses
4,589
3,622
13,741
10,852
Earnings before interest and income
taxes
614
2,342
2,986
3,801
Net interest and other financial
(benefits) costs
(30
)
80
(48
)
472
Earnings before income taxes
644
2,262
3,034
3,329
Income tax expense
154
260
684
224
Net earnings
490
2,002
2,350
3,105
Less: Net earnings attributable to
noncontrolling interests
—
—
—
—
Net earnings attributable to United
States Steel Corporation
$
490
$
2,002
$
2,350
$
3,105
COMMON STOCK DATA:
Net earnings per share attributable to
United States Steel Corporation Stockholders
Basic
$
2.07
$
7.41
$
9.33
$
11.80
Diluted
$
1.85
$
6.97
$
8.38
$
11.13
Weighted average shares, in thousands
Basic
237,094
270,175
251,848
263,209
Diluted
266,264
287,463
281,569
279,103
Dividends paid per common share
$
0.05
$
0.01
$
0.15
$
0.03
UNITED STATES STEEL
CORPORATION
CONDENSED CASH FLOW STATEMENT
(Unaudited)
Nine Months Ended September
30,
(Dollars in millions)
2022
2021
Increase (decrease) in cash, cash
equivalents and restricted cash
Operating activities:
Net earnings
$
2,350
$
3,105
Depreciation, depletion and
amortization
594
587
Gain on sale of Transtar
—
(506
)
Asset impairment charges
157
28
Gain on equity investee transactions
—
(111
)
Restructuring and other charges
57
37
Loss on debt extinguishment
—
282
Pensions and other postretirement
benefits
(164
)
(88
)
Deferred income taxes
561
59
Working capital changes
(545
)
(852
)
Income taxes receivable/payable
(88
)
137
Other operating activities
(172
)
(73
)
Net cash provided by operating
activities
2,750
2,605
Investing activities:
Capital expenditures
(1,138
)
(460
)
Acquisition of Big River Steel, net of
cash acquired
—
(625
)
Proceeds from sale of Transtar
—
627
Proceeds from cost reimbursement
government grants
53
—
Proceeds from sale of assets
28
25
Other investing activities
(8
)
(3
)
Net cash used in investing activities
(1,065
)
(436
)
Financing activities:
Repayment of short-term debt
—
(180
)
Revolving credit facilities - borrowings,
net of financing costs
—
50
Revolving credit facilities -
repayments
—
(911
)
Issuance of long-term debt, net of
financing costs
291
862
Repayment of long-term debt
(375
)
(2,719
)
Net proceeds from public offering of
common stock
—
790
Common stock repurchased
(699
)
—
Proceeds from government incentives
82
—
Other financing activities
(51
)
(12
)
Net cash used in financing activities
(752
)
(2,120
)
Effect of exchange rate changes on
cash
(46
)
(15
)
Net increase in cash, cash equivalents and
restricted cash
887
34
Cash, cash equivalents and restricted cash
at beginning of year
2,600
2,118
Cash, cash equivalents and restricted cash
at end of period
$
3,487
$
2,152
UNITED STATES STEEL
CORPORATION
CONDENSED BALANCE SHEET
(Unaudited)
September 30,
December 31,
(Dollars in millions)
2022
2021
Cash and cash equivalents
$
3,364
$
2,522
Receivables, net
2,035
2,089
Inventories
2,759
2,210
Other current assets
294
331
Total current assets
8,452
7,152
Operating lease assets
154
185
Property, plant and equipment, net
7,978
7,254
Investments and long-term receivables,
net
832
694
Intangible, net
488
519
Goodwill
920
920
Other noncurrent assets
1,134
1,092
Total assets
$
19,958
$
17,816
Accounts payable and other accrued
liabilities
3,280
2,908
Payroll and benefits payable
482
425
Short-term debt and current maturities of
long-term debt
59
28
Other current liabilities
341
491
Total current liabilities
4,162
3,852
Noncurrent operating lease liabilities
112
136
Long-term debt, less unamortized discount
and debt issuance costs
3,863
3,863
Employee benefits
204
235
Other long-term liabilities
1,087
627
United States Steel Corporation
stockholders' equity
10,437
9,010
Noncontrolling interests
93
93
Total liabilities and stockholders'
equity
$
19,958
$
17,816
UNITED STATES STEEL
CORPORATION
NON-GAAP FINANCIAL MEASURES
RECONCILIATION OF ADJUSTED NET
EARNINGS
Three Months Ended September
30,
Nine Months Ended September
30,
(In millions of dollars)
2022
2021
2022
2021
Net earnings and diluted net earnings per
share attributable to United States Steel Corporation, as
reported
$
490
$
1.85
$
2,002
$
6.97
$
2,350
$
8.38
$
3,105
$
11.13
Restructuring and other charges
23
—
57
37
Asset impairment charges
—
—
157
28
Other charges, net
13
(12
)
11
36
Losses (gains) on assets sold and
previously held investments
—
7
—
(119
)
Gain on sale of Transtar
—
(506
)
—
(506
)
(Gains) losses on debt extinguishment
(2
)
26
(2
)
280
Adjusted pre-tax net earnings to United
States Steel Corporation
524
1,517
2,573
2,861
Tax impact of adjusted items (a)
(8
)
121
(55
)
109
Adjusted net earnings and diluted net
earnings per share attributable to United States Steel Corporation
(b)
516
$
1.95
1,638
$
5.70
2,518
$
8.98
2,970
$
10.64
Weight average diluted ordinary shares
outstanding, in millions
266.3
287.5
281.6
279.1
(a) The tax impact of adjusted items was
calculated through the first half of 2022 using a blended tax rate
of 25% and for the third quarter of 2022 using a blended tax rate
of 25% for domestic and 21% for USSE items.
(b) Diluted net earnings per share were
adjusted by increasing adjusted net earnings by $3 million for the
three months ended September 30, 2022, and by $10 million for the
nine months ended September 30, 2022 for the adoption of ASU
2020-06 which assumes outstanding convertible notes are converted
to shares at the beginning of the period.
Note: The reported net earnings
attributable to U. S. Steel for the three and nine months ended
September 30, 2021 and for the nine months ended September 30, 2022
includes income tax benefits of $25 million, $120 million and $7
million, respectively, from the reversals of net valuation
allowances. These items were presented as adjustments to arrive at
Adjusted net earnings attributable to U. S. Steel in prior period
presentations. The reconciliations for the three and nine months
ended September 30, 2021 presented above have been recast to
reflect the removal of these adjustments in accordance with
Securities and Exchange Commission guidance.
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)
2022
2021
2022
2021
Reconciliation to Adjusted EBITDA
Net earnings attributable to United States
Steel Corporation
$
490
$
2,002
$
2,350
$
3,105
Income tax expense
154
260
684
224
Net interest and other financial
(benefits) costs
(30
)
80
(48
)
472
Depreciation, depletion and amortization
expense
198
196
594
587
EBITDA
812
2,538
3,580
4,388
Restructuring and other charges
23
—
57
37
Asset impairment charges
—
—
157
28
Other charges, net
13
(12
)
11
36
Losses (gains) on assets sold and
previously held investments
—
7
—
(119
)
Gain on sale of Transtar
—
(506
)
—
(506
)
Adjusted EBITDA
848
2,027
3,805
3,864
UNITED STATES STEEL
CORPORATION
NON-GAAP FINANCIAL MEASURES
RECONCILIATION OF FREE CASH
FLOW
Nine Months Ended September
30,
(Dollars in millions)
2022
2021
Net cash provided by operating
activities
$
2,750
$
2,605
Net cash used in investing activities
(1,065
)
(436
)
Cash used in dividends paid
(38
)
(8
)
Free cash flow
$
1,647
$
2,161
UNITED STATES STEEL
CORPORATION
NON-GAAP FINANCIAL MEASURES
RECONCILIATION OF PAST TWELVE
MONTHS OF FREE CASH FLOW
4th
1st
2nd
3nd
Quarter
Quarter
Quarter
Quarter
Total of the
(Dollars in millions)
2021
2022
2022
2022
Four Quarters
Net cash provided by operating
activities
$
1,485
$
771
$
905
$
1,074
4,235
Net cash used in investing activities
(404
)
(352
)
(250
)
(463
)
(1,469
)
Cash used in dividends paid
(15
)
(13
)
(13
)
(12
)
(53
)
Free cash flow
$
1,066
$
406
$
642
$
599
$
2,713
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, asset impairment charges,
losses (gains) on asset sold and previously held investments, gain
on sale of Transtar, (gains) losses on debt extinguishment, 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
dividends paid to stockholders. We believe that 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, financial performance, the construction or operation
of new and existing facilities, the timing, size and form of share
repurchase transactions, 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, changes in global supply and demand
conditions and 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
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, 2021 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/20221027005946/en/
Arista Joyner Manager Corporate Communications T - (412)
433-3994 E - AEjoyner@uss.com
Kevin Lewis Vice President Investor Relations T - (412) 433-6935
E - KLewis@uss.com
US Steel (NYSE:X)
Historical Stock Chart
Von Mär 2024 bis Apr 2024
US Steel (NYSE:X)
Historical Stock Chart
Von Apr 2023 bis Apr 2024