X
$12.43
United States Steel
$1.15
10.20%
Earnings Details
2nd Quarter June 2019
Thursday, August 01, 2019 4:15:00 PM
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Summary

United States Steel Beats

United States Steel (X) reported 2nd Quarter June 2019 earnings of $0.45 per share on revenue of $3.5 billion. The consensus earnings estimate was $0.40 per share on revenue of $3.4 billion. The Earnings Whisper number was $0.38 per share. Revenue fell 1.8% compared to the same quarter a year ago.

United States Steel Corp is an integrated steel producer of flat-rolled and tubular products with production operations in North America and Europe.

Results
Reported Earnings
$0.45
Earnings Whisper
$0.38
Consensus Estimate
$0.40
Reported Revenue
$3.55 Bil
Revenue Estimate
$3.37 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

United States Steel Corporation Reports Second Quarter 2019 Results

  • Net earnings of $68 million, or $0.39 per diluted share

  • Adjusted net earnings of $78 million, or $0.45 per diluted share

  • Adjusted EBITDA of $278 million

  • Returned $37 million of capital to stockholders, including $28 million of share repurchases

PITTSBURGH, Aug. 01, 2019 (GLOBE NEWSWIRE) -- United States Steel Corporation (NYSE: X) reported second quarter 2019 net earnings of $68 million, or $0.39 per diluted share.  Adjusted net earnings were $78 million, or $0.45 per diluted share.  This compares to second quarter 2018 net earnings of $214 million, or $1.20 per diluted share.  Adjusted net earnings for second quarter 2018 were $262 million, or $1.46 per diluted share.           

Earnings Highlights
 
 Quarter Ended Six Months
Ended
 June 30, June 30,
(Dollars in millions, except per share amounts)20192018 20192018
Net Sales $3,545 $3,609  $7,044 $6,758 
Segment earnings (loss) before interest and income taxes          
Flat-Rolled$134 $224  $229 $257 
U. S. Steel Europe(10)115  19 225 
Tubular(6)(35) 4 (62)
Other Businesses10 17  18 28 
Total segment earnings before interest and income taxes$128 $321  $270 $448 
Other items not allocated to segments(13)(20) (44)(10)
Earnings before interest and income taxes$115 $301  $226 $438 
Net interest and other financial costs54 75  103 193 
Income tax (benefit) provision(7)12  1 13 
Net earnings$68 $214  $122 $232 
Earnings per diluted share$0.39 $1.20  $0.70 $1.30 
      
Adjusted net earnings (a)$78 $262  $159 $319 
Adjusted net earnings per diluted share (a)$0.45 $1.46  $0.92 $1.79 
Adjusted earnings before interest, income taxes, depreciation and amortization (EBITDA) (a)$278 $451  $563 $706 
(a) Please refer to the non-GAAP Financial Measures section of this document for the reconciliation of these amounts.


"Our execution in the second quarter was strong despite challenging market conditions,” commented President and Chief Executive Officer David B. Burritt.  “We overcame logistics headwinds from severe weather and delivered for our customers, exceeding even our own expectations.  We also completed several Asset Revitalization outages across the flat-rolled footprint on time and on budget, including upgrades to our Mon Valley steel shop.  We expect these investments to enhance operating performance and reliability to provide high quality, low cost liquid steel for our future endless casting and rolling investment."

Burritt added, “Execution of our technology investments, including the Mon Valley endless casting and rolling line, Tubular electric arc furnace, and USSK Dynamo Line, are on track to deliver almost $400 million of incremental run-rate EBITDA benefits when completed.  With each passing quarter, we are making the company more competitive and our continued execution is proof that our strategy is working.”            

The Company will conduct a conference call on second quarter 2019 earnings on Friday, August 2, at 8:30 a.m. Eastern Daylight.  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 August 2.

 
UNITED STATES STEEL CORPORATION
PRELIMINARY SUPPLEMENTAL STATISTICS (Unaudited)
        
 Quarter Ended Six Months Ended
 June 30, June 30,
 2019 2018 2019 2018
OPERATING STATISTICS
       
Average realized price: ($/net ton unless otherwise noted)(a)       
Flat-Rolled779  819  789  780 
U. S. Steel Europe652  707  661  707 
U. S. Steel Europe (€/net ton)580  593  585  584 
Tubular1,524  1,449  1,537  1,420 
Steel shipments (thousands of net tons):(a)       
Flat-Rolled2,804  2,584  5,529  5,118 
U. S. Steel Europe1,004  1,156  2,068  2,283 
Tubular195  201  402  380 
Total Steel Shipments4,003  3,941  7,999  7,781 
        
Intersegment steel (unless otherwise noted) shipments (thousands of net tons):       
Flat-Rolled to Tubular52  65  133  132 
Flat-Rolled to U. S. Steel Europe (iron ore pellets and fines)189    189   
U. S. Steel Europe to Flat-Rolled  22    22 
Raw steel production (thousands of net tons):       
Flat-Rolled2,984  2,841  6,059  5,626 
U. S. Steel Europe1,148  1,308  2,307  2,600 
Raw steel capability utilization:(b)       
Flat-Rolled70% 67% 72% 67%
U. S. Steel Europe92% 105% 93% 105%
        
CAPITAL EXPENDITURES
       
Flat-Rolled$254  $142  $501  $318 
U. S. Steel Europe41  17  75  38 
Tubular29  13  48  24 
Other Businesses2  1  4  1 
Total$326  $173  $628  $381 
(a) Excludes intersegment shipments.
(b) Based on annual raw steel production capability of 17.0 million net tons for Flat-Rolled and 5.0 million net tons for U. S. Steel Europe.
 



UNITED STATES STEEL CORPORATION
CONDENSED STATEMENT OF OPERATIONS (Unaudited)
        
 Quarter Ended Six Months Ended
 June 30, June 30,
(Dollars in millions, except per share amounts)2019 2018 2019 2018
NET SALES$3,545  $3,609  $7,044  $6,758 
        
OPERATING EXPENSES (INCOME):       
Cost of sales (excludes items shown below)3,227  3,121  6,399  5,929 
Selling, general and administrative expenses82  92  160  170 
Depreciation, depletion and amortization150  130  293  258 
Earnings from investees(28) (19) (37) (22)
Gain on equity investee transactions  (18)   (18)
Net loss on disposal of assets  1  4  2 
Other (income) expense, net(1) 1  (1) 1 
        
Total operating expenses3,430  3,308  6,818  6,320 
        
EARNINGS BEFORE INTEREST AND INCOME TAXES115  301  226  438 
Net interest and other financial costs54  75  103  193 
        
EARNINGS BEFORE INCOME TAXES61  226  123  245 
Income tax (benefit) provision(7) 12  1  13 
        
Net earnings68  214  122  232 
Less: Net earnings (loss) attributable to noncontrolling interests       
NET EARNINGS ATTRIBUTABLE TO       
UNITED STATES STEEL CORPORATION$68  $214  $122  $232 
        
COMMON STOCK DATA:       
Net earnings per share attributable to       
United States Steel Corporation stockholders:       
Basic$0.39  $1.21  $0.71  $1.32 
Diluted$0.39  $1.20  $0.70  $1.30 
Weighted average shares, in thousands       
Basic171,992  177,027  172,613  176,594 
Diluted172,512  178,903  173,475  178,485 
Dividends paid per common share$0.05  $0.05  $0.10  $0.10 
                


UNITED STATES STEEL CORPORATION
CONDENSED CASH FLOW STATEMENT (Unaudited)
  
  
 Six Months Ended
 June 30,
(Dollars in millions)2019  2018 
Cash provided by (used in) operating activities:     
Net earnings$122  $232 
Depreciation, depletion and amortization293  258 
Gain on equity investee transactions  (18)
Loss on debt extinguishment  74 
Pensions and other postretirement benefits55  37 
Deferred income taxes(3) (1)
Net loss on disposal of assets4  2 
Working capital changes(133) (271)
Income taxes receivable/payable39  (3)
Other operating activities(11) (17)
Total366  293 
    
Cash used in investing activities:   
Capital expenditures(628) (381)
Disposal of assets1  1 
Other investing activities  (1)
Total(627) (381)
    
Cash provided by (used in) financing activities:   
Issuance of long-term debt, net of financing costs  640 
Repayment of long-term debt(1) (874)
Common stock repurchased(70)  
Dividends paid(18) (18)
Receipts from exercise of stock options  33 
Taxes paid for equity compensation plans(7) (8)
Total(96) (227)
    
Effect of exchange rate changes on cash(1) (10)
    
Net decrease in cash, cash equivalents and restricted cash(358) (325)
Cash, cash equivalents and restricted cash at beginning of the year1,040  1,597 
    
Cash, cash equivalents and restricted cash at end of the period$682  $1,272 
        


UNITED STATES STEEL CORPORATION
CONDENSED BALANCE SHEET (Unaudited)
 
 June 30,  Dec. 31, 
(Dollars in millions)2019  2018
 
Cash and cash equivalents$651  $1,000 
Receivables, net1,638  1,659 
Inventories2,166  2,092 
Other current assets92  79 
Total current assets4,547  4,830 
Operating lease assets237   
Property, plant and equipment, net5,233  4,865 
Investments and long-term receivables, net550  513 
Intangible assets, net154  158 
Deferred income tax benefits433  445 
Other noncurrent assets137  171 
    
Total assets$11,291  $10,982 
    
Accounts payable and other accrued liabilities2,615  2,535 
Payroll and benefits payable334  440 
Short-term debt and current maturities of long-term debt70  65 
Other current liabilities204  157 
Total current liabilities3,223  3,197 
Noncurrent operating lease liabilities188   
Long-term debt, less unamortized discount and debt issuance costs2,345  2,316 
Employee benefits926  980 
Other long-term liabilities297  286 
United States Steel Corporation stockholders' equity4,311  4,202 
Noncontrolling interests1  1 
    
Total liabilities and stockholders' equity$11,291  $10,982 
        


UNITED STATES STEEL CORPORATION
NON-GAAP FINANCIAL MEASURES
RECONCILIATION OF ADJUSTED EBITDA
      
 Quarter Ended  Six Months Ended 
 June 30,  June 30, 
(Dollars in millions) 2019   2018   2019   2018 
Reconciliation to Adjusted EBITDA               
Net earnings attributable to United States Steel Corporation$68  $214  $122  $232 
Income tax (benefit) provision(7) 12  1  13 
Net interest and other financial costs54  75  103  193 
Depreciation, depletion and amortization expense150  130  293  258 
EBITDA265  431  519  696 
December 24, 2018 Clairton coke making facility fire13    44   
Gain on equity investee transactions  (18)   (18)
Granite City Works restart costs  36    36 
Granite City Works adjustment to temporary idling charges  2    (8)
Adjusted EBITDA$278  $451  $563  $706 
                


UNITED STATES STEEL CORPORATION
NON-GAAP FINANCIAL MEASURES
RECONCILIATION OF ADJUSTED NET EARNINGS
        
 Quarter Ended Six Months Ended
 June 30,  June 30, 
(Dollars in millions, except per share amounts) (a) 2019   2018   2019   2018 
Reconciliation to adjusted net earnings (loss) attributable to United States Steel Corporation               
Net earnings attributable to United States Steel Corporation$68  $214  $122  $232 
December 24, 2018 Clairton coke making facility fire10    37   
Gain on equity investee transactions  (18)   (18)
Granite City Works restart costs  36    36 
Granite City Works adjustment to temporary idling charges  2    (8)
Loss on debt extinguishment and other related costs  28    77 
Total adjustments10  48  37  87 
Adjusted net earnings attributable to United States Steel Corporation$78  $262  $159  $319 
        
Reconciliation to adjusted diluted net earnings (loss) per share       
Diluted net earnings per share$0.39  $1.20  $0.70  $1.30 
December 24, 2018 Clairton coke making facility fire0.06    0.22   
Gain on equity investee transactions  (0.10)   (0.10)
Granite City Works restart costs  0.20    0.20 
Granite City Works adjustment to temporary idling charges  0.01    (0.04)
Loss on debt extinguishment and other related costs  0.15    0.43 
Total adjustments0.06  0.26  0.22  0.49 
Adjusted diluted net earnings per share$0.45  $1.46  $0.92  $1.79 
(a) The adjustments included in this table for the three and six months ended June 30, 2019 have been tax effected.  The adjustments for the three and six months ended June 30, 2018 have not been tax effected due to the full valuation allowance on our domestic deferred tax assets in 2018.

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 financial effects of items such as the December 24, 2018 Clairton coke making facility fire, the effects of gains on equity investee transactions, facility restart costs, significant temporary idling charges and adjustments to those charges and debt extinguishment and other related costs that are not part of the Company's core operations (Adjustment Items).  Adjusted EBITDA is also a non-GAAP measure that excludes the financial effects of the 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 Adjustment Items. 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” 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, 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, 2018, 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.


CONTACTS: 
  
MediaInvestors/Analysts
Meghan CoxKevin Lewis
ManagerGeneral Manager
Corporate CommunicationsInvestor Relations
T - (412) 433-6777T - (412) 433-6935
E - mmcox@uss.comE - KLewis@uss.com 

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Source: United States Steel Corporation