X
$14.25
United States Steel
($.65)
(4.36%)
Earnings Details
1st Quarter March 2019
Thursday, May 2, 2019 4:05:00 PM
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Summary

United States Steel Beats

United States Steel (X) reported 1st Quarter March 2019 earnings of $0.47 per share on revenue of $3.5 billion. The consensus earnings estimate was $0.17 per share on revenue of $3.3 billion. The Earnings Whisper number was $0.13 per share. Revenue grew 11.1% on a year-over-year basis.

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
$0.47
Earnings Whisper
$0.13
Consensus Estimate
$0.17
Reported Revenue
$3.50 Bil
Revenue Estimate
$3.25 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

United States Steel Corporation Reports First Quarter 2019 Results

  • Net earnings of $54 million, or $0.31 per diluted share; Adjusted net earnings of $81 million, or $0.47 per diluted share

  • Adjusted EBITDA of $285 million

  • Returned $51 million of capital to stockholders, including $42 million of share repurchases

PITTSBURGH, May 02, 2019 (GLOBE NEWSWIRE) -- United States Steel Corporation (NYSE: X) reported first quarter 2019 net earnings of $54 million, or $0.31 per diluted share.  Adjusted net earnings were $81 million, or $0.47 per diluted share.  This compares to first quarter 2018 net earnings of $18 million, or $0.10 per diluted share.  Adjusted net earnings for first quarter 2018 were $57 million, or $0.32 per diluted share.

Earnings Highlights
    
  Quarter Ended
  March 31,
 (Dollars in millions, except per share amounts)20192018
 Net Sales$3,499 $3,149 
 Segment earnings (loss) before interest and income taxes  
    Flat-Rolled$95 $33 
    U. S. Steel Europe29 110 
    Tubular10 (27)
    Other Businesses8 11 
 Total segment earnings before interest and income taxes$142 $127 
 Other items not allocated to segments(31)10 
 Earnings before interest and income taxes$111 $137 
 Net interest and other financial costs49 118 
 Income tax provision8 1 
 Net earnings$54 $18 
 Earnings per diluted share$0.31 $0.10 


 Adjusted net earnings(a)$81 $57 
 Adjusted earnings per diluted share (a)$0.47 $0.32 
 Adjusted earnings before interest, income taxes, depreciation and
 amortization (EBITDA) (a)
$285 $255 
 (a) Please refer to the non-GAAP Financial Measures section of this document for the reconciliation of these amounts.

“Over the past few years, we have made strategic investments across our footprint, with a focus on our most critical flat-rolled steelmaking assets,” commented President and Chief Executive Officer David B. Burritt.  “Our progress continued in the first quarter as we delivered strong financial results.  Today's announcement of a state-of-the-art endless casting and rolling line at Mon Valley Works further strengthens our competitive position and will generate long-term value for our stockholders, customers, employees and community.”

The Company will conduct a conference call on first quarter 2019 earnings on Friday, May 3, 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 May 3.


UNITED STATES STEEL CORPORATION
PRELIMINARY SUPPLEMENTAL STATISTICS (Unaudited)
       
    Quarter Ended
    March 31,
    2019 2018
OPERATING STATISTICS   
 Average Realized Price: (a)   
  Flat-Rolled ($/net ton)798  740 
  U. S. Steel Europe ($/net ton)670  707 
  U. S. Steel Europe (€/net ton)590  575 
  Tubular ($/net ton)1,549  1,387 
 Steel Shipments (thousands of net tons): (a)   
  Flat-Rolled2,725  2,534 
  U. S. Steel Europe1,064  1,127 
  Tubular207  179 
   Total Steel Shipments3,996  3,840 
       
 Intersegment Shipments (thousands of net tons):   
  Flat-Rolled to Tubular81  67 
 Raw Steel Production (thousands of net tons):   
  Flat-Rolled3,075  2,784 
  U. S. Steel Europe1,159  1,292 
 Raw Steel Capability Utilization: (b)   
  Flat-Rolled73% 66%
  U. S. Steel Europe94% 105%
       
 CAPITAL EXPENDITURES  
  Flat-Rolled$247  $176 
  U. S. Steel Europe34  21 
  Tubular19  11 
  Other Businesses2   
   Total$302  $208 
(a) Excludes intersegment transfers.
(b) Based on annual raw steel production capability of 17.0 million net tons for Flat-Rolled and 5.0 million net tons for USSE.


UNITED STATES STEEL CORPORATION
STATEMENT OF OPERATIONS (Unaudited)
      
   Quarter Ended
   March 31,
(Dollars in millions, except per share amounts)2019 2018
NET SALES $3,499  $3,149 
      
OPERATING EXPENSES (INCOME):   
 Cost of sales (excludes items shown below)3,172  2,808 
 Selling, general and administrative expenses78  78 
 Depreciation, depletion and amortization143  128 
 Earnings from investees(9) (3)
 Net loss on disposal of assets4  1 
    Total operating expenses 3,388  3,012 
      
EARNINGS BEFORE INTEREST AND INCOME TAXES111  137 
Net interest and other financial costs49  118 
 EARNINGS BEFORE INCOME TAXES62  19 
Income tax provision8  1 
Net earnings 54  18 
 Less: Net earnings attributable to   
   noncontrolling interests   
NET EARNINGS ATTRIBUTABLE TO   
 UNITED STATES STEEL CORPORATION$54  $18 
      
COMMON STOCK DATA:   
      
Net earnings per share attributable to   
  United States Steel Corporation stockholders:   
 -Basic $0.31  $0.10 
 -Diluted $0.31  $0.10 
Weighted average shares, in thousands   
 -Basic 173,241  176,157 
 -Diluted 174,545  178,289 
Dividends paid per common share$0.05  $0.05 


UNITED STATES STEEL CORPORATION
CASH FLOW STATEMENT (Unaudited)
       
    Quarter Ended
    March 31,
(Dollars in millions) 2019 2018
Cash provided by (used in) operating activities:   
 Net earnings $54  $18 
 Depreciation, depletion and amortization 143  128 
 Loss on debt extinguishment   46 
 Pensions and other postretirement benefits 30  22 
 Deferred income taxes 6   
 Net loss on disposal of assets 4  1 
 Working capital changes (247) (310)
 Income taxes receivable/payable 41  (8)
 Other operating activities (2) 4 
  Total 29  (99)
       
Cash used in investing activities:    
 Capital expenditures (302) (208)
  Total (302) (208)
       
Cash provided by (used in) financing activities:   
 Issuance of long-term debt, net of financing costs  640 
 Repayment of long-term debt   (538)
 Common stock repurchased (42)  
 Dividends paid (9) (9)
 Receipts from exercise of stock options   30 
 Taxes paid for equity compensation plans (5) (6)
  Total (56) 117 
       
Effect of exchange rate changes on cash (2) 10 
       
Net decrease in cash, cash equivalents and restricted cash(331) (180)
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$709  $1,417 


UNITED STATES STEEL CORPORATION
CONDENSED BALANCE SHEET (Unaudited)
      
   March 31, Dec 31,
(Dollars in millions) 2019 2018
Cash and cash equivalents$676  $1,000 
Receivables, net 1,729  1,659 
Inventories 2,133  2,092 
Other current assets 92  79 
 Total current assets4,630  4,830 
Operating lease assets234   
Property, plant and equipment, net4,989  4,865 
Investments and long-term receivables, net535  513 
Intangible assets, net156  158 
Deferred income tax benefits427  445 
Other assets 181  171 
      
 Total assets $11,152  $10,982 
      
Accounts payable and other accrued liabilities$2,547  $2,535 
Payroll and benefits payable333  440 
Short-term debt and current maturities of long-term debt66  65 
Other current liabilities 194  157 
 Total current liabilities3,140  3,197 
Noncurrent operating lease liabilities185   
Long-term debt, less unamortized discount and debt issuance costs2,326  2,316 
Employee benefits 954  980 
Other long-term liabilities311  286 
United States Steel Corporation stockholders' equity4,235  4,202 
Noncontrolling interests1  1 
      
 Total liabilities and stockholders' equity$11,152  $10,982 


UNITED STATES STEEL CORPORATION
NON-GAAP FINANCIAL MEASURES
RECONCILIATION OF ADJUSTED EBITDA
     
  Quarter Ended
  March 31,
(Dollars in millions)2019 2018
Reconciliation to Adjusted EBITDA   
 Net earnings attributable to United States Steel Corporation$54  $18 
 Income tax provision8  1 
 Net interest and other financial costs49  118 
 Depreciation, depletion and amortization expense143  128 
 EBITDA254  265 
 Clairton coke making facility fire31   
 Granite City Works adjustment to temporary idling charges  (10)
 Adjusted EBITDA285  255 


UNITED STATES STEEL CORPORATION
NON-GAAP FINANCIAL MEASURES
RECONCILIATION OF ADJUSTED NET EARNINGS (LOSS)
     
  Quarter Ended(a)
  March 31,
(Dollars in millions, except per share amounts)2019 2018
Reconciliation to adjusted net earnings attributable to United States Steel Corporation   
 Net earnings attributable to United States Steel Corporation$54  $18 
 Clairton coke making facility fire27   
 Granite City Works adjustment to temporary idling charges  (10)
 Loss on debt extinguishment and other related costs  49 
    Total adjustments27  39 
 Adjusted net earnings attributable to United States Steel Corporation$81  $57 
     
Reconciliation to adjusted diluted net earnings per share   
 Diluted net earnings per share$0.31  $0.10 
 Clairton coke making facility fire0.16   
 Granite City Works adjustment to temporary idling charges  (0.05)
 Loss on debt extinguishment and other related costs  0.27 
    Total adjustments0.16  0.22 
 Adjusted diluted net earnings per share$0.47  $0.32 
(a) The adjustment included in this table for the quarter ended March 31, 2019 has been tax effected.  The adjustments for the quarter ended March 31, 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 the Clairton coke making facility fire, 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.  Adjusted EBITDA is also a non-GAAP measure that excludes the financial effects of the Clairton coke making facility fire and significant temporary idling charges and adjustments to those charges.  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 financial effects of the Clairton coke making facility fire, significant temporary idling charges and adjustments to those charges and debt extinguishment and other related costs that can obscure underlying trends.  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 consolidated statement of operations (unaudited), 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 growth, share of sales and earnings per share growth, 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:
Media
Meghan Cox
Manager
Corporate Communications
T - (412) 433-6777
E - mmcox@uss.com
 
Investors/Analysts
Kevin Lewis
General Manager
Investor Relations
T - (412) 433-6935
E - KLewis@uss.com
 

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Source: United States Steel Corporation