United States Steel Corporation (NYSE: X) today provided fourth
quarter 2022 guidance. Fourth quarter 2022 adjusted EBITDA is
expected to be approximately $375 million. Fourth quarter 2022
adjusted net earnings per diluted share is expected to be in the
range of $0.58 to $0.63.
“We remain on-track to deliver our second-best financial year
with continued execution of our strategy and $150 million of direct
returns to stockholders expected in the quarter,” commented U. S.
Steel President and Chief Executive Officer David B. Burritt. “Our
expected fourth quarter performance is in-line with commentary
provided on our October earnings call. December commercial demand
in the U.S. is better and scrap prices have begun to increase this
month. Flat-rolled customer inquiries are accelerating and spot
steel selling prices are improving.”
Burritt continued, “As discussed during our October earnings
call, we continue to work through higher priced metallics in our
Mini Mill segment and pressure on our European segment continues
from lower demand in the region and higher raw material and energy
costs. Our Tubular segment is expected to deliver another
incrementally strong quarter.”
Burritt concluded, “We are entering 2023 from a position of
strength. Our commissioned pig iron facility at Gary Works will
begin delivering cost-advantaged pig iron to Big River Steel in the
first half of 2023 and is the latest example of meeting our
commitment to deliver our Best for All® initiatives on-time and
on-budget. We are progressing on our strategic initiatives with
robust cash and liquidity that both pre-funds our strategic
investments and supports direct returns to stockholders.”
Recent Footprint Actions
The Company continues to monitor its order book to ensure its
footprint supports customers’ needs. Below is a summary of actions
taken or recently announced.
North American Flat-rolled
Segment:
- Blast Furnace #3 at Mon Valley Works: Blast furnace #3 remains
temporarily idled. As previously communicated on the July earnings
call, the Company pulled forward a planned outage on blast furnace
#3 at Mon Valley Works from October to September. Blast furnace #3
has approximately 1.4 million net tons of annual raw steel
equivalent capability.
- Blast Furnace #8 at Gary Works: Blast furnace #8 remains
temporarily idled. As previously communicated, the Company
temporarily idled blast furnace #8 at Gary Works due to market
conditions and continued high levels of imports. Blast furnace #8
has approximately 1.5 million net tons of annual raw steel
equivalent capability.
- Tin Line #5 at Gary Works: Tin line #5 remains temporarily
idled. As previously communicated, the Company temporarily idled
tin line #5 at Gary Works due to market conditions and elevated
levels of tin product imports. Tin line #5 has approximately
140,000 net tons of annual capability.
U. S. Steel Europe Segment:
- Blast Furnace #1 at U. S. Steel Kosice (USSK): Blast furnace #1
remains temporarily idled. The Company intends to restart
production at blast furnace #1 in early January. The Company
temporarily idled blast furnace #1 at USSK in early December due to
soft market demand, high energy prices, and elevated imports. Blast
furnace #1 has approximately 1.6 million net tons of annual raw
steel equivalent capability.
- Blast Furnace #2 at USSK: Blast furnace #2 remains temporarily
idled. As previously communicated, the Company pulled forward a
planned outage on blast furnace #2 at USSK from October to
September. Blast furnace #2 has approximately 1.7 million net tons
of annual raw steel equivalent capability.
Stockholder Returns Update
The Company expects to complete an additional approximately $150
million of repurchases of common stock in the fourth quarter under
its existing $500 million stock buyback authorization. By year end,
the Company expects to have repurchased approximately 15% of its
outstanding shares since the beginning of December 2021, which
equates to over $1 billion returned directly to stockholders.
Fourth Quarter Adjusted EBITDA Commentary
The Flat-rolled segment’s adjusted EBITDA is expected to be
lower than the third quarter. Fixed price contracts in our
Flat-rolled segment are expected to limit the negative impact to
the segment’s average selling price from the flow-through of lower
steel selling prices in spot business and market-based adjustable
contracts. Continued customer de-stocking and seasonal demand
factors are expected to result in lower shipments.
The Mini Mill segment’s adjusted EBITDA is expected to be
negative in the fourth quarter. Significantly reduced average
selling prices from the segment’s exposure to spot selling prices
and the consumption of high-cost raw materials procured at the
onset of the Ukraine conflict are expected to negatively impact the
segment’s EBITDA performance and margins in the fourth quarter.
Sourcing pig iron from Gary Works beginning in the first half of
2023 and working through the remainder of the high-priced raw
materials are expected to improve the Mini Mill segment’s financial
results.
The European segment’s adjusted EBITDA is also expected to be
lower than the third quarter. Traditional year-end customer
destocking has been slower than expected due to reduced demand from
end-customers. This has prolonged the soft steel demand at our
Slovak operations and is negatively impacting steel selling prices
in the region, notably in the segment’s spot exposure. High-cost
raw materials, an extended supply chain, and elevated energy costs
continue to pressure margin performance.
The Tubular segment is expected to deliver another quarter of
incremental earnings compared to the third quarter. U.S. drilling
rates remain steady which is supporting strong customer demand and
prices for seamless OCTG. The segment continues to benefit from the
strategic investment in the electric arc furnace completed in 2020
and our portfolio of proprietary connections. In addition,
successful trade action on OCTG product has reduced unfairly traded
imports. Our expected fourth quarter adjusted EBITDA includes the
impact of a non-recurring, non-cash adjustment of approximately $20
million.
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
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.
UNITED STATES STEEL
CORPORATION
NON-GAAP FINANCIAL MEASURES
RECONCILIATION OF ADJUSTED EBITDA
GUIDANCE
(Dollars in millions)
Reconciliation to Projected Adjusted
EBITDA Included in Guidance
4Q 2022
Projected net earnings attributable to
United States Steel Corporation included in guidance
$
110
Estimated income tax provision
65
Estimated net interest and other financial
costs (income)
(45
)
Estimated depreciation, depletion, and
amortization
190
Projected EBITDA included in guidance
$
320
Estimated adjustments
55
Projected adjusted EBITDA included in
guidance
$
375
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
4Q 2022
Projected net earnings attributable to
United States Steel Corporation included in guidance
$
110
Estimated adjustments
48
Projected adjusted net earnings
attributable to United States Steel Corporation included in
guidance
$
158
Reconciliation to Projected Adjusted
Net Earnings Per Diluted Share Included in Guidance
4Q 2022
Projected net earnings per diluted share
included in guidance (mid-point of guidance)
$
0.43
Estimated adjustments
0.18
Projected adjusted net earnings per
diluted share included in guidance (mid-point of guidance)
$
0.61
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.
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/20221215005933/en/
Arista E. Joyner Manager Financial 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 Apr 2024 bis Mai 2024
US Steel (NYSE:X)
Historical Stock Chart
Von Mai 2023 bis Mai 2024