PITTSBURGH, July 25, 2017
/PRNewswire/ -- United States Steel Corporation (NYSE: X)
reported second quarter 2017 net earnings of $261 million, or $1.48 per diluted share, which included a gain of
$72 million, or $0.41 per diluted share which represents the
recovery in excess of our retained interest resulting from the sale
of U. S. Steel Canada Inc. This compared to a second quarter
2016 net loss of $46 million, or
$0.32 per diluted share, and a first
quarter 2017 net loss of $180 million, or $1.03 per diluted share.
Earnings
Highlights
|
|
(Dollars in
millions, except per share amounts)
|
2Q
2017
|
1Q
2017
|
2Q
2016
|
Net
Sales
|
$
|
3,144
|
|
$
|
2,725
|
|
$
|
2,584
|
|
Segment earnings
(loss) before interest and income taxes
|
|
|
|
Flat-Rolled
|
$
|
218
|
|
$
|
(90)
|
|
$
|
6
|
|
U. S. Steel
Europe
|
55
|
|
87
|
|
55
|
|
Tubular
|
(29)
|
|
(57)
|
|
(78)
|
|
Other Businesses
|
9
|
|
13
|
|
10
|
|
Total segment
earnings (loss) before interest and income taxes
|
$
|
253
|
|
$
|
(47)
|
|
$
|
(7)
|
|
Postretirement
benefit (expense) income
|
(12)
|
|
(16)
|
|
12
|
|
Other items not
allocated to segments
|
72
|
|
(35)
|
|
23
|
|
Earnings (loss)
before interest and income taxes
|
$
|
313
|
|
$
|
(98)
|
|
$
|
28
|
|
Net interest and
other financial costs
|
68
|
|
63
|
|
81
|
|
Income tax
(benefit) provision
|
(16)
|
|
19
|
|
(7)
|
|
Less: Net earnings
attributable to the noncontrolling interests
|
—
|
|
—
|
|
—
|
|
Net earnings
(loss) attributable to United States Steel
Corporation
|
$
|
261
|
|
$
|
(180)
|
|
$
|
(46)
|
|
-Earnings (loss)
per basic share
|
$
|
1.49
|
|
$
|
(1.03)
|
|
$
|
(0.32)
|
|
-Earnings (loss)
per diluted share
|
$
|
1.48
|
|
$
|
(1.03)
|
|
$
|
(0.32)
|
|
|
|
|
|
Adjusted earnings
before interest, income taxes, depreciation
and amortization (EBITDA) (a)
|
$
|
362
|
|
$
|
74
|
|
$
|
134
|
|
(a) Please
refer to the non-GAAP Financial Measures section of this document
for the reconciliation of net earnings (loss) attributable to
United States Steel Corporation to adjusted EBITDA.
|
Commenting on results, U. S. Steel President and Chief
Executive Officer Dave Burritt said,
"Our facilities performed better in the second quarter,
particularly in our Flat-Rolled segment. Better operations,
combined with higher prices and volumes in all of our segments and
improved results from our mining operations, resulted in a
$300 million improvement in our
segment results compared with the first quarter. Our European
operations continue to deliver solid earnings and our Tubular
operations continue to make progress towards returning to
profitability. We are focused on our strategic priorities:
driving operational excellence across our business – from our
plants to our support teams; investing in our facilities through
our asset revitalization program; and providing our employees with
the resources they need to implement positive, substantive changes.
Successful execution of this strategy will result in continuous
improvements in safety, quality, delivery and costs and create
meaningful value and returns for all of our stakeholders, including
employees, customers and stockholders."
Segment earnings before interest and income taxes were
$253 million, or $66 per ton, for the second quarter of 2017
compared with segment loss before interest and income taxes of
$47 million, or $13 per ton, in the first quarter of 2017 and a
segment loss before interest and income taxes of $7 million, or $2
per ton, in the second quarter of 2016. For the second
quarter of 2017, we recorded a tax benefit of $16 million on our pretax earnings of
$245 million.
We had positive operating cash flow of $242 million for the six months ended
June 30, 2017. As of
June 30, 2017, we had $1.5 billion of cash and $3.3 billion of total liquidity, our highest
liquidity since the separation from Marathon Oil at the end of
2001.
Segment Analysis
Second quarter results for our Flat-Rolled segment improved
significantly compared with the first quarter, primarily due to
higher results from our mining operations and a second consecutive
quarter of increasing average realized prices and shipments.
The higher results from our mining operations reflect the benefits
from the restart of our Keetac facility to support third-party
pellet sales, as well as normal seasonal improvements.
Second quarter results for our European segment declined
compared with the first quarter due to an unfavorable
first-in-first-out (FIFO) inventory impact, only partially offset
by increased average realized prices and shipments, lower raw
material and energy costs, and a favorable impact from foreign
exchange rates.
Second quarter results for our Tubular segment improved compared
with the first quarter due to increased average realized prices and
shipments, as well as operational efficiencies. These
benefits were partially offset by increased substrate costs.
2017 Outlook
Commenting on U. S. Steel's Outlook for 2017, Burritt said, "We
are seeing a more bullish sentiment in the markets served by our
Flat-Rolled and European segments right now, as prices have been
increasing and overall demand has been stable. Our Tubular
segment continues to benefit from operational and cost improvements
we have made, as well as from stronger market conditions. Our
investment in our facilities and our people continues to
increase. These strategic investments, combined with our
focus on achieving operational excellence, will deliver continuous
improvements in safety, quality, delivery and costs that will
position us to succeed through business cycles, and support future
growth initiatives."
If market conditions remain at their current levels, we
expect:
- 2017 net earnings of approximately $300
million, or $1.70 per share,
and consolidated adjusted EBITDA of approximately $1.1 billion;
-
- EBITDA by Segment;
-
- Flat-Rolled EBITDA of approximately $750
million;
- U. S. Steel Europe EBITDA of approximately $400 million;
- Tubular EBITDA of approximately ($50)
million; and
- Other Businesses to be comparable to 2016 and approximately
$60 million of postretirement benefit
expense
We believe market conditions, which include spot prices, raw
material costs, customer demand, import volumes, supply chain
inventories, rig counts and energy prices, will change, and as
changes occur during the balance of 2017, we expect these changes
to be reflected in our net earnings and adjusted EBITDA.
Please refer to the non-GAAP Financial Measures section of this
document for the reconciliation of Outlook net earnings to
consolidated Outlook adjusted EBITDA and Outlook segment earnings
(loss) before interest and income taxes to segment Outlook
EBITDA.
*****
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 cash
generating activity 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 effects of
gains (losses) associated with our retained interest in U. S. Steel
Canada Inc., restructuring charges and impairment charges that are
not part of the Company's core operations. Adjusted EBITDA is
also a non-GAAP measure that excludes the effects of gains (losses)
associated with our retained interest in U. S. Steel Canada Inc.,
restructuring charges and impairment 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, particularly cash generating activity, by
excluding the effects of gains (losses) associated with our
retained interest in U. S. Steel Canada Inc., restructuring charges
and impairment charges 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
useful to investors by facilitating a comparison of our operating
performance to the operating performance of our competitors, many
of which use adjusted net earnings (loss), adjusted net earnings
(loss) per diluted share and adjusted EBITDA as alternative
measures of operating performance. 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 or in preparing the Company's annual financial
Outlook. 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.
The Company will conduct a conference call on second quarter
earnings on Wednesday, July 26, at
8:30 a.m. Eastern Daylight. To
listen to the webcast of the conference call, visit the
U. S. Steel website, www.ussteel.com, and click on the
"Investors" section.
For more information on U. S. Steel, visit our website
at www.ussteel.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS
This release contains information that may constitute
"forward-looking statements" within the meaning of Section 27 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, 2016, 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.
UNITED STATES
STEEL CORPORATION
|
STATEMENT OF
OPERATIONS (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Six Months
Ended
|
|
|
|
June 30
|
|
March 31
|
|
June 30
|
|
June 30,
|
(Dollars in millions,
except per share amounts)
|
2017
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
NET SALES
|
|
$
|
3,144
|
|
|
$
|
2,725
|
|
|
$
|
2,584
|
|
|
$
|
5,869
|
|
|
$
|
4,925
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES
(INCOME):
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
(excludes items shown below)
|
2,725
|
|
|
2,561
|
|
|
2,397
|
|
|
5,286
|
|
|
4,833
|
|
|
Selling, general and
administrative expenses
|
79
|
|
|
97
|
|
|
64
|
|
|
176
|
|
|
133
|
|
|
Depreciation,
depletion and amortization
|
121
|
|
|
137
|
|
|
129
|
|
|
258
|
|
|
258
|
|
|
Earnings from
investees
|
(16)
|
|
|
(4)
|
|
|
(28)
|
|
|
(20)
|
|
|
(73)
|
|
|
Gain associated with
retained interest in U. S. Steel Canada Inc.
|
(72)
|
|
|
—
|
|
|
—
|
|
|
(72)
|
|
|
—
|
|
|
Restructuring and
other charges
|
(1)
|
|
|
33
|
|
|
(6)
|
|
|
32
|
|
|
4
|
|
|
Net (gain) loss on
disposal of assets
|
—
|
|
|
(1)
|
|
|
—
|
|
|
(1)
|
|
|
3
|
|
|
Other income,
net
|
(5)
|
|
|
—
|
|
|
—
|
|
|
(5)
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses
|
2,831
|
|
|
2,823
|
|
|
2,556
|
|
|
5,654
|
|
|
5,158
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS (LOSS)
BEFORE INTEREST AND INCOME TAXES
|
313
|
|
|
(98)
|
|
|
28
|
|
|
215
|
|
|
(233)
|
|
Net interest and
other financial costs
|
68
|
|
|
63
|
|
|
81
|
|
|
131
|
|
|
146
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS (LOSS)
BEFORE INCOME TAXES
|
245
|
|
|
(161)
|
|
|
(53)
|
|
|
84
|
|
|
(379)
|
|
Income tax (benefit)
provision
|
(16)
|
|
|
19
|
|
|
(7)
|
|
|
3
|
|
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
(loss)
|
261
|
|
|
(180)
|
|
|
(46)
|
|
|
81
|
|
|
(386)
|
|
|
Less: Net earnings
(loss) attributable to the
|
|
|
|
|
|
|
|
|
|
|
noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
NET EARNINGS (LOSS)
ATTRIBUTABLE TO
|
|
|
|
|
|
|
|
|
|
|
UNITED STATES STEEL
CORPORATION
|
$
|
261
|
|
|
$
|
(180)
|
|
|
$
|
(46)
|
|
|
$
|
81
|
|
|
$
|
(386)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMON STOCK
DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
per share attributable to
|
|
|
|
|
|
|
|
|
|
United
States Steel Corporation stockholders:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.49
|
|
|
$
|
(1.03)
|
|
|
$
|
(0.32)
|
|
|
$
|
0.46
|
|
|
$
|
(2.64)
|
|
|
Diluted
|
|
$
|
1.48
|
|
|
$
|
(1.03)
|
|
|
$
|
(0.32)
|
|
|
$
|
0.46
|
|
|
$
|
(2.64)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares, in thousands
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
174,797
|
|
|
174,242
|
|
|
146,582
|
|
|
174,521
|
|
|
146,492
|
|
|
Diluted
|
|
176,028
|
|
|
174,242
|
|
|
146,582
|
|
|
176,319
|
|
|
146,492
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid per
common share
|
$
|
0.05
|
|
|
$
|
0.05
|
|
|
$
|
0.05
|
|
|
$
|
0.10
|
|
|
$
|
0.10
|
|
UNITED STATES
STEEL CORPORATION
|
CASH FLOW STATEMENT
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
|
|
|
June 30,
|
(Dollars in
millions)
|
|
2017
|
|
2016
|
Cash provided by
operating activities:
|
|
|
|
|
Net earnings
(loss)
|
|
$
|
81
|
|
|
$
|
(386)
|
|
|
Depreciation,
depletion and amortization
|
258
|
|
|
258
|
|
|
Gain associated with
retained interest in U. S. Steel Canada Inc.
|
(72)
|
|
|
—
|
|
|
Restructuring and
other charges
|
32
|
|
|
4
|
|
|
Pensions and other
postretirement benefits
|
31
|
|
|
(21)
|
|
|
Deferred income
taxes
|
2
|
|
|
2
|
|
|
Net (gain) loss on
disposal of assets
|
(1)
|
|
|
3
|
|
|
Working capital
changes
|
(199)
|
|
|
435
|
|
|
Income taxes
receivable/payable
|
20
|
|
|
6
|
|
|
Other operating
activities
|
90
|
|
|
12
|
|
|
|
Total
|
|
242
|
|
|
313
|
|
|
|
|
|
|
|
|
Cash used in
investing activities:
|
|
|
|
|
Capital
expenditures
|
|
(120)
|
|
|
(217)
|
|
|
Disposal of
assets
|
|
—
|
|
|
1
|
|
|
Other investing
activities
|
|
(2)
|
|
|
(18)
|
|
|
|
Total
|
|
(122)
|
|
|
(234)
|
|
|
|
|
|
|
|
|
Cash used in
financing activities:
|
|
|
|
|
Issuance of long-term
debt, net of financing costs
|
|
—
|
|
|
958
|
|
|
Repayment of
long-term debt
|
|
(108)
|
|
|
(962)
|
|
|
Dividends
paid
|
|
(18)
|
|
|
(15)
|
|
|
Receipts from
exercise of stock options
|
|
13
|
|
|
—
|
|
|
Taxes paid for equity
compensation plans (a)
|
|
(10)
|
|
|
—
|
|
|
|
Total
|
|
(123)
|
|
|
(19)
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash
|
10
|
|
|
5
|
|
|
|
|
|
|
|
|
Net increase in cash
and cash equivalents
|
7
|
|
|
65
|
|
Cash and cash
equivalents at beginning of the year
|
1,515
|
|
|
755
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at end of the period
|
$
|
1,522
|
|
|
$
|
820
|
|
(a)
Effective January 1, 2017, the Company adopted Accounting Standards
Update No. 2016-09, Compensation - Stock Compensation (ASU
2016-09). As a result of adopting ASU 2016-09, cash taxes
paid by the Company when directly withholding shares for tax
withholding purposes have been classified as a cash flow financing
activity. The adoption of this component of ASU 2016-09 was
applied retrospectively, but was not significant to the cash flow
statement for the six months ended June 30, 2016.
|
UNITED STATES
STEEL CORPORATION
|
CONDENSED BALANCE
SHEET (Unaudited)
|
|
|
|
|
|
|
|
|
|
June 30
|
|
Dec. 31
|
(Dollars in
millions)
|
|
2017
|
|
2016
|
Cash and cash
equivalents
|
$
|
1,522
|
|
|
$
|
1,515
|
|
Receivables,
net
|
1,444
|
|
|
1,248
|
|
Inventories
|
1,727
|
|
|
1,573
|
|
Other current
assets
|
30
|
|
|
20
|
|
|
Total current
assets
|
4,723
|
|
|
4,356
|
|
Property, plant and
equipment, net
|
4,010
|
|
|
3,979
|
|
Investments and
long-term receivables, net
|
548
|
|
|
528
|
|
Intangible assets,
net
|
171
|
|
|
175
|
|
Other
assets
|
128
|
|
|
122
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
9,580
|
|
|
$
|
9,160
|
|
|
|
|
|
|
|
Accounts payable and
other accrued liabilities
|
$
|
2,025
|
|
|
$
|
1,668
|
|
Payroll and benefits
payable
|
338
|
|
|
400
|
|
Short-term debt and
current maturities of long-term debt
|
175
|
|
|
50
|
|
Other current
liabilities
|
213
|
|
|
213
|
|
|
Total current
liabilities
|
2,751
|
|
|
2,331
|
|
Long-term debt, less
unamortized discount and debt issuance costs
|
2,752
|
|
|
2,981
|
|
Employee
benefits
|
1,151
|
|
|
1,216
|
|
Other long-term
liabilities
|
371
|
|
|
357
|
|
United States Steel
Corporation stockholders' equity
|
2,554
|
|
|
2,274
|
|
Noncontrolling
interests
|
1
|
|
|
1
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
|
9,580
|
|
|
$
|
9,160
|
|
UNITED STATES
STEEL CORPORATION
|
NON-GAAP FINANCIAL
MEASURES (Unaudited)
|
|
|
RECONCILIATION OF
ADJUSTED EBITDA
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
June 30
|
|
March 31
|
|
June 30
|
(Dollars in
millions)
|
2017
|
|
2017
|
|
2016
|
Reconciliation to
Adjusted EBITDA
|
|
|
|
|
|
|
Net earnings (loss)
attributable to United States Steel Corporation
|
$
|
261
|
|
|
$
|
(180)
|
|
|
$
|
(46)
|
|
|
Income tax (benefit)
provision
|
(16)
|
|
|
19
|
|
|
(7)
|
|
|
Net interest and
other financial costs
|
68
|
|
|
63
|
|
|
81
|
|
|
Depreciation,
depletion and amortization expense
|
121
|
|
|
137
|
|
|
129
|
|
|
EBITDA
|
434
|
|
|
39
|
|
|
157
|
|
|
Gain associated with
retained interest in U. S. Steel Canada Inc.
|
(72)
|
|
|
—
|
|
|
—
|
|
|
Loss on shutdown of
certain tubular assets
|
—
|
|
|
35
|
|
|
—
|
|
|
Supplemental
unemployment and severance costs
|
—
|
|
|
—
|
|
|
(23)
|
|
|
Adjusted
EBITDA
|
$
|
362
|
|
|
$
|
74
|
|
|
$
|
134
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended(a)
|
|
|
June 30
|
|
March 31
|
|
June 30
|
(Dollars in millions,
except per share amounts)
|
2017
|
|
2017
|
|
2016
|
Reconciliation to
adjusted net earnings (loss) attributable to United States
Steel Corporation
|
|
|
|
|
|
|
Net earnings (loss)
attributable to United States Steel Corporation
|
$
|
261
|
|
|
$
|
(180)
|
|
|
$
|
(46)
|
|
|
Gain associated with
retained interest in U. S. Steel Canada Inc.
|
(72)
|
|
|
—
|
|
|
—
|
|
|
Loss on shutdown of
certain tubular assets
|
—
|
|
|
35
|
|
|
—
|
|
|
Supplemental
unemployment and severance costs
|
—
|
|
|
—
|
|
|
(23)
|
|
|
Loss on debt
extinguishment
|
—
|
|
|
—
|
|
|
24
|
|
|
Total adjustments
|
—
|
|
|
35
|
|
|
1
|
|
|
Adjusted net earnings
(loss) attributable to United States Steel Corporation
|
$
|
189
|
|
|
$
|
(145)
|
|
|
$
|
(45)
|
|
|
|
|
|
|
|
|
Reconciliation to
adjusted diluted net earnings (loss) per share
|
|
|
|
|
|
|
Diluted net earnings
(loss) per share
|
$
|
1.48
|
|
|
$
|
(1.03)
|
|
|
$
|
(0.32)
|
|
|
Gain associated with
retained interest in U. S. Steel Canada Inc.
|
(0.41)
|
|
|
—
|
|
|
—
|
|
|
Loss on shutdown of
certain tubular assets
|
—
|
|
|
0.20
|
|
|
—
|
|
|
Supplemental
unemployment and severance costs
|
—
|
|
|
—
|
|
|
(0.16)
|
|
|
Loss on debt
extinguishment
|
—
|
|
|
—
|
|
|
0.17
|
|
|
Total adjustments
|
(0.41)
|
|
|
0.20
|
|
|
0.01
|
|
|
Adjusted diluted net
earnings (loss) per share
|
$
|
1.07
|
|
|
$
|
(0.83)
|
|
|
$
|
(0.31)
|
|
(a) The
adjustments included in this table have been tax effected at a 0%
tax rate due to the recognition of a full valuation
allowance.
|
UNITED STATES
STEEL CORPORATION
|
RECONCILIATION OF
ANNUAL ADJUSTED EBITDA OUTLOOK
|
|
|
|
|
|
Year Ended
|
|
|
Dec. 31
|
(Dollars in
millions)
|
2017
|
Reconciliation to
Projected Annual Adjusted EBITDA Included in Outlook
|
|
|
Projected net
earnings attributable to United States Steel Corporation included
in Outlook
|
$
|
300
|
|
|
Estimated income tax
expense
|
57
|
|
|
Estimated net
interest and other financial costs
|
255
|
|
|
Estimated
depreciation, depletion and amortization
|
525
|
|
|
Gain associated with
retained interest in U. S. Steel Canada Inc.
|
(72)
|
|
|
Loss on shutdown of
certain tubular assets
|
35
|
|
|
Projected annual
adjusted EBITDA included in Outlook
|
$
|
1,100
|
|
UNITED STATES
STEEL CORPORATION
|
RECONCILIATION OF
OUTLOOK SEGMENT EARNINGS (LOSS) BEFORE INTEREST AND
INCOME TAXES TO OUTLOOK SEGMENT EBITDA
|
|
|
|
|
|
(Dollars in
millions)
|
Flat-Rolled
|
U. S. Steel
Europe
|
Tubular
|
Reconciliation to
Segment EBITDA Included in Outlook
|
|
|
|
|
Projected segment
earnings (loss) before
interest and income taxes included in Outlook
|
$
|
380
|
|
$
|
325
|
|
$
|
(105)
|
|
|
Estimated
depreciation, depletion and
amortization
|
370
|
|
75
|
|
55
|
|
|
Projected annual
segment EBITDA included in
Outlook
|
$
|
750
|
|
$
|
400
|
|
$
|
(50)
|
|
UNITED STATES
STEEL CORPORATION
|
PRELIMINARY
SUPPLEMENTAL STATISTICS (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Six Months
Ended
|
|
|
June 30
|
|
March 31
|
|
June 30
|
|
June 30,
|
(Dollars in
millions)
|
2017
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
SEGMENT EARNINGS
(LOSS) BEFORE INTEREST AND
INCOME TAXES
|
|
|
|
|
|
|
|
|
|
|
Flat-Rolled
|
$
|
218
|
|
|
$
|
(90)
|
|
|
$
|
6
|
|
|
$
|
128
|
|
|
$
|
(182)
|
|
|
U. S. Steel
Europe
|
55
|
|
|
87
|
|
|
55
|
|
|
142
|
|
|
41
|
|
|
Tubular
|
(29)
|
|
|
(57)
|
|
|
(78)
|
|
|
(86)
|
|
|
(142)
|
|
|
Other
Businesses
|
9
|
|
|
13
|
|
|
10
|
|
|
22
|
|
|
24
|
|
Total Segment
Earnings (Loss) Before Interest and
Income Taxes
|
253
|
|
|
(47)
|
|
|
(7)
|
|
|
206
|
|
|
(259)
|
|
|
Postretirement
benefit (expense) income
|
(12)
|
|
|
(16)
|
|
|
12
|
|
|
(28)
|
|
|
28
|
|
|
Other items not
allocated to segments:
|
|
|
|
|
|
|
|
|
|
|
Gain associated with
retained interest in U. S. Steel
Canada Inc.
|
72
|
|
—
|
|
|
—
|
|
|
72
|
|
|
—
|
|
|
Loss on shutdown of
certain tubular assets
|
—
|
|
|
(35)
|
|
|
—
|
|
|
(35)
|
|
|
—
|
|
|
Supplemental
unemployment and severance costs
|
—
|
|
|
—
|
|
|
23
|
|
|
—
|
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss)
before interest and income taxes
|
$
|
313
|
|
|
$
|
(98)
|
|
|
$
|
28
|
|
|
$
|
215
|
|
|
$
|
(233)
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL
EXPENDITURES
|
|
|
|
|
|
|
|
|
|
|
Flat-Rolled
|
$
|
47
|
|
|
$
|
25
|
|
|
$
|
28
|
|
|
$
|
72
|
|
|
$
|
74
|
|
|
U. S. Steel
Europe
|
20
|
|
|
14
|
|
|
22
|
|
|
34
|
|
51
|
|
|
Tubular
|
4
|
|
|
7
|
|
|
18
|
|
|
11
|
|
70
|
|
|
Other
Businesses
|
2
|
|
|
1
|
|
|
1
|
|
|
3
|
|
22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
$
|
73
|
|
|
$
|
47
|
|
|
$
|
69
|
|
|
$
|
120
|
|
|
$
|
217
|
|
UNITED STATES
STEEL CORPORATION
|
PRELIMINARY
SUPPLEMENTAL STATISTICS (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Six Months
Ended
|
|
|
|
|
June 30
|
|
March 31
|
|
June 30
|
|
June 30,
|
|
|
|
|
2017
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
OPERATING
STATISTICS
|
|
|
|
|
|
|
|
|
|
|
Average realized
price: (a)
|
|
|
|
|
|
|
|
|
|
|
|
Flat-Rolled ($/net
ton)
|
742
|
|
|
719
|
|
642
|
|
731
|
|
625
|
|
|
U. S. Steel Europe
($/net ton)
|
620
|
|
|
594
|
|
485
|
|
607
|
|
472
|
|
|
U.
S. Steel Europe (euro/net ton)
|
563
|
|
|
558
|
|
430
|
|
561
|
|
423
|
|
|
Tubular ($/net
ton)
|
1,234
|
|
|
1,097
|
|
1,050
|
|
1,173
|
|
1,123
|
|
Steel Shipments
(thousands of net tons):(a)
|
|
|
|
|
|
|
|
|
|
|
|
Flat-Rolled
|
2,497
|
|
|
2,404
|
|
2,692
|
|
4,901
|
|
5,188
|
|
|
U. S. Steel
Europe
|
1,157
|
|
|
1,109
|
|
1,125
|
|
2,266
|
|
2,129
|
|
|
Tubular
|
180
|
|
|
144
|
|
70
|
|
324
|
|
159
|
|
|
|
Total Steel
Shipments
|
3,834
|
|
|
3,657
|
|
3,887
|
|
7,491
|
|
7,476
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intersegment
Shipments (thousands of net tons):
|
|
|
|
|
|
|
|
|
|
|
|
Flat-Rolled to
Tubular
|
94
|
|
—
|
|
|
—
|
|
|
94
|
|
—
|
|
|
|
USSE to
Flat-Rolled
|
25
|
|
22
|
|
—
|
|
|
47
|
|
—
|
|
|
Raw Steel Production
(thousands of net tons):
|
|
|
|
|
|
|
|
|
|
|
|
Flat-Rolled
|
2,711
|
|
2,714
|
|
2,735
|
|
5,425
|
|
5,514
|
|
|
U. S. Steel
Europe
|
1,285
|
|
1,258
|
|
1,258
|
|
2,543
|
|
2,410
|
|
Raw Steel Capability
Utilization: (b)
|
|
|
|
|
|
|
|
|
|
|
|
Flat-Rolled
|
64
|
%
|
|
65
|
%
|
|
65
|
%
|
|
64
|
%
|
|
65
|
%
|
|
|
U. S. Steel
Europe
|
103
|
%
|
|
102
|
%
|
|
101
|
%
|
|
103
|
%
|
|
97
|
%
|
(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.
|
View original
content:http://www.prnewswire.com/news-releases/united-states-steel-corporation-reports-second-quarter-2017-results-300493985.html
SOURCE United States Steel Corporation