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United States Steel Corporation Reports Second Quarter 2021 Results

  • Net earnings of $1,012 million, or $3.53 per diluted share
  • Adjusted net earnings of $964 million, or $3.37 per diluted share
  • Adjusted EBITDA of $1,286 million
  • Liquidity of $4.176 billion, including cash of $1.329 billion

PITTSBURGH--(BUSINESS WIRE)-- United States Steel Corporation (NYSE: X) reported second quarter 2021 net earnings of $1,012 million, or $3.53 per diluted share. Adjusted net earnings was $964 million, or $3.37per diluted share. This compares to second quarter 2020 net loss of $589 million, or $3.36 per diluted share. Adjusted net loss for second quarter 2020 was $469 million, or $2.67 per diluted share.

Earnings Highlights

 

Three Months Ended

 

Six Months Ended

 

June 30,

 

June 30,

(Dollars in millions, except per share amounts)

2021

2020

 

2021

2020

Net Sales

$

5,025

 

$

2,091

 

 

$

8,689

 

$

4,839

 

Segment earnings (loss) before interest and income taxes

 

 

 

 

 

Flat-Rolled

$

579

 

$

(329

)

 

$

725

 

$

(364

)

Mini Mill (a)

 

284

 

 

 

 

 

416

 

 

 

U. S. Steel Europe

 

207

 

 

(26

)

 

 

312

 

 

(40

)

Tubular (b)

 

 

 

(47

)

 

 

(29

)

 

(95

)

Other

 

14

 

 

(21

)

 

 

22

 

 

(20

)

Total segment earnings (loss) before interest and income taxes

$

1,084

 

$

(423

)

 

$

1,446

 

$

(519

)

Other items not allocated to segments

 

(50

)

 

(109

)

 

 

13

 

 

(388

)

Earnings (loss) before interest and income taxes

$

1,034

 

$

(532

)

 

$

1,459

 

$

(907

)

Net interest and other financial costs

 

59

 

 

62

 

 

 

392

 

 

97

 

Income tax benefit

 

(37

)

 

(5

)

 

 

(36

)

 

(24

)

Net earnings (loss)

$

1,012

 

$

(589

)

 

$

1,103

 

$

(980

)

Earnings (loss) per diluted share

$

3.53

 

$

(3.36

)

 

$

4.02

 

$

(5.67

)

 

 

 

 

 

 

Adjusted net earnings (loss) (c)

$

964

 

 

(469

)

 

$

1,247

 

 

(592

)

Adjusted net earnings (loss) per diluted share (c)

$

3.37

 

$

(2.67

)

 

$

4.54

 

$

(3.43

)

Adjusted earnings (loss) before interest, income taxes, depreciation and amortization (EBITDA) (c)

$

1,286

 

 

(264

)

 

$

1,837

 

 

(200

)

(a) Mini Mill segment, added after January 15, 2021 with the purchase of the remaining equity interest in Big River Steel, does not include the newly constructed electric arc (EAF) at our Fairfield Tubular Operations in Fairfield, Alabama.

(b) The Fairfield EAF is included in the Tubular segment.

(c) Please refer to the non-GAAP Financial Measures section of this document for the reconciliation of these amounts.

“The second quarter was an exceptional quarter for U. S. Steel,” said U. S. Steel President and Chief Executive Officer David B. Burritt. “The enterprise delivered record adjusted EBITDA margins, highlighting the power of a combined integrated and mini mill footprint. Our financial strength gives us the confidence to announce up to $1 billion of additional debt reduction over the next 12 months. This is in addition to the $2.2 billion of debt reduction we’ve already committed to or delivered to date.”

Commenting on U. S. Steel's strategy, Burritt continued, "Our mission is to provide customers with profitable steel solutions that benefit people and planet. Our Best of Both℠ business model creates the platform to transition to Best for All℠ so that we can contribute to a more sustainable future for all our stakeholders. We recently announced an investment in a state-of-the-art non-grain oriented (NGO) electrical steel line that will further Big River Steel’s industry-leading position. This investment allows us to partner with auto OEMs on their own decarbonization goals. We also divested our Transtar rail assets to support our transition to a Best for All strategy.”

Burritt concluded, “We are bullish that today's strong market environment can continue. Our business is firing on all cylinders; our balance sheet has been enhanced, and our pension and OPEB plans are fully funded. We are capitalizing on today’s supportive market to get to our future faster. Our customers are the driving force behind our Best for All ambitions, and we thank our employees for safely delivering record quality and reliability performance for them. We look forward to setting new records in the third quarter and expect to achieve all-time best adjusted EBITDA for the quarter.”

*****

The Company will conduct a conference call on second quarter 2021 earnings on Friday, July 30, 2021 at 8:30 a.m. EDT. 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 “Investors” then "Events & Presentations." Replays of the conference call will be available on the website after 10:30 a.m. on July 30, 2021.

UNITED STATES STEEL CORPORATION

PRELIMINARY SUPPLEMENTAL STATISTICS (Unaudited)

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

June 30,

 

 

2021

 

2020

 

2021

 

2020

OPERATING STATISTICS

 

 

 

 

 

 

 

 

Average realized price: ($/net ton unless otherwise noted) (a)

 

 

 

 

 

 

 

 

Flat-Rolled

 

 

1,078

 

 

 

721

 

 

 

983

 

 

 

715

 

Mini Mill (b)

 

 

1,207

 

 

 

 

 

 

1,106

 

 

 

 

U. S. Steel Europe

 

 

905

 

 

 

632

 

 

 

831

 

 

 

620

 

U. S. Steel Europe (€/net ton)

 

 

750

 

 

 

575

 

 

 

689

 

 

 

563

 

Tubular

 

 

1,633

 

 

 

1,288

 

 

 

1,513

 

 

 

1,285

 

 

 

 

 

 

 

 

 

 

Steel shipments (thousands of net tons): (a)

 

 

 

 

 

 

 

 

Flat-Rolled

 

 

2,326

 

 

 

1,790

 

 

 

4,658

 

 

 

4,299

 

Mini Mill (b)

 

 

616

 

 

 

 

 

 

1,063

 

 

 

 

U. S. Steel Europe

 

 

1,167

 

 

 

610

 

 

 

2,210

 

 

 

1,411

 

Tubular

 

 

105

 

 

 

132

 

 

 

194

 

 

 

319

 

Total Steel Shipments

 

 

4,214

 

 

 

2,532

 

 

 

8,125

 

 

 

6,029

 

 

 

 

 

 

 

 

 

 

Intersegment steel (unless otherwise noted) shipments (thousands of net tons):

 

 

 

 

 

 

 

 

Flat-Rolled to Tubular

 

 

 

 

 

9

 

 

 

 

 

 

101

 

Flat-Rolled to USSE (iron ore pellets and fines)

 

 

223

 

 

 

225

 

 

 

439

 

 

 

225

 

Mini Mill (b) to Flat-Rolled

 

 

125

 

 

 

 

 

 

186

 

 

 

 

 

 

 

 

 

 

 

 

 

Raw steel production (thousands of net tons):

 

 

 

 

 

 

 

 

Flat-Rolled

 

 

2,485

 

 

 

1,468

 

 

 

5,066

 

 

 

4,616

 

Mini Mill (b)

 

 

747

 

 

 

 

 

 

1,257

 

 

 

 

U. S. Steel Europe

 

 

1,279

 

 

 

645

 

 

 

2,476

 

 

 

1,527

 

Tubular (c)

 

 

114

 

 

 

 

 

 

207

 

 

 

 

 

 

 

 

 

 

 

 

 

Raw steel capability utilization: (d)

 

 

 

 

 

 

 

 

Flat-Rolled

 

 

59

%

 

 

35

%

 

 

60

%

 

 

54

%

Mini Mill (b)

 

 

91

%

 

 

%

 

 

84

%

 

 

%

U. S. Steel Europe

 

 

103

%

 

 

52

%

 

 

100

%

 

 

61

%

Tubular

 

 

51

%

 

 

%

 

 

46

%

 

 

%

 

 

 

 

 

 

 

 

 

CAPITAL EXPENDITURES (dollars in millions)

 

 

 

 

 

 

 

 

Flat-Rolled

 

$

93

 

 

$

118

 

 

$

167

 

 

$

310

 

Mini Mill (b)

 

 

20

 

 

 

 

 

 

56

 

 

 

 

U. S. Steel Europe

 

 

12

 

 

 

14

 

 

 

26

 

 

 

48

 

Tubular

 

 

22

 

 

 

40

 

 

 

34

 

 

 

94

 

Other Businesses

 

 

1

 

 

 

1

 

 

 

1

 

 

 

3

 

Total

 

$

148

 

 

$

173

 

 

$

284

 

 

$

455

 

(a) Excludes intersegment shipments.

(b) Mini Mill segment added after January 15, 2021 with the purchase of the remaining equity interest in Big River Steel.

(c) Tubular segment raw steel added in October 2020 with the start-up of the new electric arc furnace.

(d) 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

 

Six Months Ended

 

 

June 30,

 

June 30,

(Dollars in millions, except per share amounts)

 

2021

 

2020

 

2021

 

2020

NET SALES

 

$

5,025

 

 

$

2,091

 

 

$

8,689

 

 

$

4,839

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES (INCOME):

 

 

 

 

 

 

 

 

Cost of sales

 

 

3,678

 

 

 

2,274

 

 

 

6,752

 

 

 

4,879

 

Selling, general and administrative expenses

 

 

106

 

 

 

62

 

 

 

208

 

 

 

134

 

Depreciation, depletion and amortization

 

 

202

 

 

 

159

 

 

 

391

 

 

 

319

 

(Earnings) loss from investees

 

 

(35

)

 

 

39

 

 

 

(49

)

 

 

47

 

Asset impairment charges

 

 

28

 

 

 

 

 

 

28

 

 

 

263

 

Gain on equity investee transactions

 

 

 

 

 

 

 

 

(111

)

 

 

(31

)

Restructuring and other charges

 

 

31

 

 

 

89

 

 

 

37

 

 

 

130

 

Net (gain) loss on sale of assets

 

 

(15

)

 

 

 

 

 

(15

)

 

 

 

Other (gains) losses, net

 

 

(4

)

 

 

 

 

 

(11

)

 

 

5

 

Total operating expenses

 

 

3,991

 

 

 

2,623

 

 

 

7,230

 

 

 

5,746

 

 

 

 

 

 

 

 

 

 

EARNINGS (LOSS) BEFORE INTEREST AND INCOME TAXES

 

 

1,034

 

 

 

(532

)

 

 

1,459

 

 

 

(907

)

Net interest and other financial costs

 

 

59

 

 

 

62

 

 

 

392

 

 

 

97

 

 

 

 

 

 

 

 

 

 

EARNINGS (LOSS) BEFORE INCOME TAXES

 

 

975

 

 

 

(594

)

 

 

1,067

 

 

 

(1,004

)

Income tax benefit

 

 

(37

)

 

 

(5

)

 

 

(36

)

 

 

(24

)

 

 

 

 

 

 

 

 

 

Net earnings (loss)

 

 

1,012

 

 

 

(589

)

 

 

1,103

 

 

 

(980

)

Net earnings attributable to noncontrolling interests

 

 

 

 

 

 

 

 

 

 

 

 

NET EARNINGS (LOSS) ATTRIBUTABLE TO UNITED STATES STEEL CORPORATION

 

$

1,012

 

 

$

(589

)

 

$

1,103

 

 

$

(980

)

 

 

 

 

 

 

 

 

 

COMMON STOCK DATA:

 

 

 

 

 

 

 

 

Net earnings (loss) per share attributable to

 

 

 

 

 

 

 

 

United States Steel Corporation stockholders:

 

 

 

 

 

 

 

 

Basic

 

$

3.75

 

 

$

(3.36

)

 

$

4.25

 

 

$

(5.67

)

Diluted

 

$

3.53

 

 

$

(3.36

)

 

$

4.02

 

 

$

(5.67

)

Weighted average shares, in thousands

 

 

 

 

 

 

 

 

Basic

 

 

269,872

 

 

 

175,327

 

 

 

259,668

 

 

 

172,775

 

Diluted

 

 

286,337

 

 

 

175,327

 

 

 

274,512

 

 

 

172,775

 

Dividends paid per common share

 

$

0.01

 

 

$

0.01

 

 

$

0.02

 

 

$

0.02

 

UNITED STATES STEEL CORPORATION

CONDENSED CASH FLOW STATEMENT (Unaudited)

 

 

Six Months Ended

 

 

June 30,

(Dollars in millions)

 

2021

 

2020

Cash provided by (used in) operating activities:

 

 

 

 

Net earnings (loss)

 

$

1,103

 

 

$

(980

)

Depreciation, depletion and amortization

 

 

391

 

 

 

319

 

Asset impairment charges

 

 

28

 

 

 

263

 

Gain on equity investee transactions

 

 

(111

)

 

 

(31

)

Restructuring and other charges

 

 

37

 

 

 

130

 

Loss on debt extinguishment

 

 

256

 

 

 

 

Pensions and other postretirement benefits

 

 

(46

)

 

 

(10

)

Deferred income taxes

 

 

(77

)

 

 

(12

)

Net gain on sale of assets

 

 

(15

)

 

 

 

Working capital changes

 

 

(429

)

 

 

(42

)

Income taxes receivable/payable

 

 

47

 

 

 

10

 

Other operating activities

 

 

(81

)

 

 

(9

)

Total

 

 

1,103

 

 

 

(362

)

 

 

 

 

 

Cash used in investing activities:

 

 

 

 

Capital expenditures

 

 

(284

)

 

 

(455

)

Acquisition of Big River Steel, net of cash acquired

 

 

(625

)

 

 

 

Investment in Big River Steel

 

 

 

 

 

(3

)

Proceeds from sale of assets

 

 

25

 

 

 

1

 

Proceeds from sale of ownership interests in equity investees

 

 

 

 

 

8

 

Other investing activities

 

 

(1

)

 

 

(4

)

Total

 

 

(885

)

 

 

(453

)

 

 

 

 

 

Cash (used in) provided by financing activities:

 

 

 

 

Repayment of short-term debt

 

 

(180

)

 

 

 

Revolving credit facilities - borrowings, net of financing costs

 

 

50

 

 

 

1,462

 

Revolving credit facilities - repayments

 

 

(911

)

 

 

(644

)

Issuance of long-term debt, net of financing costs

 

 

825

 

 

 

1,048

 

Repayment of long-term debt

 

 

(1,418

)

 

 

(6

)

Proceeds from public offering of common stock

 

 

790

 

 

 

410

 

Proceeds from Stelco Option Agreement

 

 

 

 

 

40

 

Other financing activities

 

 

(11

)

 

 

(4

)

Total

 

 

(855

)

 

 

2,306

 

 

 

 

 

 

Effect of exchange rate changes on cash

 

 

(9

)

 

 

(1

)

 

 

 

 

 

Net (decrease) increase in cash, cash equivalents and restricted cash

 

 

(646

)

 

 

1,490

 

Cash, cash equivalents and restricted cash at beginning of the year

 

 

2,118

 

 

 

939

 

 

 

 

 

 

Cash, cash equivalents and restricted cash at end of the period

 

$

1,472

 

 

$

2,429

 

UNITED STATES STEEL CORPORATION

CONDENSED BALANCE SHEET (Unaudited)

 

 

June 30,

 

December 31,

(Dollars in millions)

 

2021

 

2020

Cash and cash equivalents

 

$

1,329

 

$

1,985

Receivables, net

 

 

2,010

 

 

994

Inventories

 

 

1,914

 

 

1,402

Assets held for sale

 

 

154

 

 

Other current assets

 

 

231

 

 

51

Total current assets

 

 

5,638

 

 

4,432

Operating lease assets

 

 

192

 

 

214

Property, plant and equipment, net

 

 

7,375

 

 

5,444

Investments and long-term receivables, net

 

 

572

 

 

1,177

Intangible assets, net

 

 

533

 

 

129

Goodwill

 

 

909

 

 

4

Other noncurrent assets

 

 

865

 

 

659

 

 

 

 

 

Total assets

 

$

16,084

 

$

12,059

 

 

 

 

 

Accounts payable and other accrued liabilities

 

 

2,819

 

 

1,884

Payroll and benefits payable

 

 

425

 

 

308

Short-term debt and current maturities of long-term debt

 

 

763

 

 

192

Other current liabilities

 

 

364

 

 

272

Liabilities held for sale

 

 

80

 

 

Total current liabilities

 

 

4,451

 

 

2,656

Noncurrent operating lease liabilities

 

 

145

 

 

163

Long-term debt, less unamortized discount and debt issuance costs

 

 

4,803

 

 

4,695

Employee benefits

 

 

208

 

 

322

Other long-term liabilities

 

 

534

 

 

344

United States Steel Corporation stockholders' equity

 

 

5,851

 

 

3,786

Noncontrolling interests

 

 

92

 

 

93

 

 

 

 

 

Total liabilities and stockholders' equity

 

$

16,084

 

$

12,059

UNITED STATES STEEL CORPORATION

NON-GAAP FINANCIAL MEASURES

RECONCILIATION OF ADJUSTED NET EARNINGS (LOSS)

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

June 30,

(Dollars in millions, except per share amounts) (a)

 

2021

 

2020

 

2021

 

2020

Reconciliation to adjusted net earnings (loss) attributable to United States Steel Corporation

 

 

 

 

 

 

 

 

Net earnings (loss) attributable to United States Steel Corporation

 

$

1,012

 

 

$

(589

)

 

$

1,103

 

 

$

(980

)

Debt extinguishment

 

 

 

 

 

 

 

 

255

 

 

 

 

Big River Steel - inventory step-up amortization

 

 

 

 

 

 

 

 

24

 

 

 

 

Big River Steel - unrealized losses

 

 

5

 

 

 

 

 

 

14

 

 

 

 

Big River Steel - acquisition costs

 

 

 

 

 

 

 

 

9

 

 

 

 

Restructuring and other charges

 

 

30

 

 

 

82

 

 

 

36

 

 

 

123

 

Gain on previously held investment in Big River Steel

 

 

 

 

 

 

 

 

(111

)

 

 

 

Asset impairment

 

 

26

 

 

 

 

 

 

26

 

 

 

263

 

Property sale

 

 

(14

)

 

 

 

 

 

(14

)

 

 

 

Reversal of tax valuation allowance (b)

 

 

(95

)

 

 

 

 

 

(95

)

 

 

 

Tubular inventory impairment

 

 

 

 

 

24

 

 

 

 

 

 

24

 

Uncertain tax positions

 

 

 

 

 

13

 

 

 

 

 

 

13

 

Gain on previously held investment in UPI

 

 

 

 

 

 

 

 

 

 

 

(25

)

Big River Steel options and forward adjustments

 

 

 

 

 

5

 

 

 

 

 

 

(6

)

December 24, 2018 Clairton coke making facility fire

 

 

 

 

 

(4

)

 

 

 

 

 

(4

)

Total adjustments

 

 

(48

)

 

 

120

 

 

 

144

 

 

 

388

 

Adjusted net earnings (loss) attributable to United States Steel Corporation

 

$

964

 

 

 

(469

)

 

$

1,247

 

 

 

(592

)

 

 

 

 

 

 

 

 

 

Reconciliation to adjusted diluted net earnings (loss) per share

 

 

 

 

 

 

 

 

Diluted net earnings (loss) per share

 

$

3.53

 

 

$

(3.36

)

 

$

4.02

 

 

$

(5.67

)

Debt extinguishment

 

 

 

 

 

 

 

 

0.93

 

 

 

 

Big River Steel - inventory step-up amortization

 

 

 

 

 

 

 

 

0.09

 

 

 

 

Big River Steel - unrealized losses

 

 

0.02

 

 

 

 

 

 

0.05

 

 

 

 

Big River Steel - acquisition costs

 

 

 

 

 

 

 

 

0.03

 

 

 

 

Restructuring and other charges

 

 

0.11

 

 

 

0.47

 

 

 

0.13

 

 

 

0.70

 

Gain on previously held investment in Big River Steel

 

 

 

 

 

 

 

 

(0.40

)

 

 

 

Asset impairment

 

 

0.09

 

 

 

 

 

 

0.09

 

 

 

1.52

 

Property sale

 

 

(0.05

)

 

 

 

 

 

(0.05

)

 

 

 

Reversal of tax valuation allowance (b)

 

 

(0.33

)

 

 

 

 

 

(0.35

)

 

 

 

Tubular inventory impairment

 

 

 

 

 

0.14

 

 

 

 

 

 

0.14

 

Uncertain tax positions

 

 

 

 

 

0.07

 

 

 

 

 

 

0.07

 

Gain on previously held investment in UPI

 

 

 

 

 

 

 

 

 

 

 

(0.14

)

Big River Steel options and forward adjustments

 

 

 

 

 

0.03

 

 

 

 

 

 

(0.03

)

December 24, 2018 Clairton coke making facility fire

 

 

 

 

 

(0.02

)

 

 

 

 

 

(0.02

)

Total adjustments

 

 

(0.16

)

 

 

0.69

 

 

 

0.52

 

 

 

2.24

 

Adjusted diluted net earnings (loss) per share

 

$

3.37

 

 

$

(2.67

)

 

$

4.54

 

 

$

(3.43

)

(a) The adjustments included in this table for the three months ended June 30, 2021 were tax effected due to the partial reversal of the valuation allowance on our domestic deferred tax assets at June 30, 2021.

(b) The $95 million adjustment was related to the reversal of a portion of the tax valuation allowance recorded against the Company's net domestic deferred tax asset as a result of the Company's three-year cumulative income position and a change in the projections of income in future years. There was an additional net benefit of $167 million included in earnings related to the reversal of the valuation allowance due to a change in estimated current year earnings.

UNITED STATES STEEL CORPORATION

NON-GAAP FINANCIAL MEASURES

RECONCILIATION OF ADJUSTED EBITDA

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

June 30,

(Dollars in millions)

 

2021

 

2020

 

2021

 

2020

Reconciliation to Adjusted EBITDA

 

 

 

 

 

 

 

 

Net earnings (loss) attributable to United States Steel Corporation

 

$

1,012

 

 

$

(589

)

 

$

1,103

 

 

$

(980

)

Income tax benefit

 

 

(37

)

 

 

(5

)

 

 

(36

)

 

 

(24

)

Net interest and other financial costs

 

 

59

 

 

 

62

 

 

 

392

 

 

 

97

 

Depreciation, depletion and amortization expense

 

 

202

 

 

 

159

 

 

 

391

 

 

 

319

 

EBITDA

 

 

1,236

 

 

 

(373

)

 

 

1,850

 

 

 

(588

)

Big River Steel - inventory step-up amortization

 

 

 

 

 

 

 

 

24

 

 

 

 

Big River Steel - unrealized losses

 

 

6

 

 

 

 

 

 

15

 

 

 

 

Big River Steel - acquisition costs

 

 

 

 

 

 

 

 

9

 

 

 

 

Restructuring and other charges

 

 

31

 

 

 

89

 

 

 

37

 

 

 

130

 

Gain on previously held investment in Big River Steel

 

 

 

 

 

 

 

 

(111

)

 

 

 

Asset impairment charge

 

 

28

 

 

 

 

 

 

28

 

 

 

263

 

Property sale

 

 

(15

)

 

 

 

 

 

(15

)

 

 

 

Tubular inventory impairment

 

 

 

 

 

24

 

 

 

 

 

 

24

 

Gain on previously held investment in UPI

 

 

 

 

 

 

 

 

 

 

 

(25

)

December 24, 2018 Clairton coke making facility fire

 

 

 

 

 

(4

)

 

 

 

 

 

(4

)

Adjusted EBITDA

 

$

1,286

 

 

$

(264

)

 

$

1,837

 

 

$

(200

)

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 effects of items that include: debt extinguishment, Big River Steel - inventory step-up amortization, Big River Steel - unrealized losses, Big River Steel - acquisition costs, restructuring and other charges, gain on previously held investment in Big River Steel, asset impairment, property sale, Tubular inventory impairment, uncertain tax positions, gain on previously held investment in UPI, Big River Steel options and forward adjustments and December 24, 2018 Clairton coke making facility fire (Adjustment Items). Adjusted EBITDA is also a non-GAAP measure that excludes the effects of certain 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 effects of events 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 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,” "may" and similar expressions or by using future dates in connection with any discussion of, among other things, financial performance, 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, the integration of Big River Steel in our existing business, business strategies related to the combined business 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 this report and in “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2020 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, references to “Big River Steel” refer to Big River Steel Holdings LLC and its direct and indirect subsidiaries unless otherwise indicated by the context, and “Transtar” refers to Transtar 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 26.2 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.

John Ambler
Vice President
Corporate Communications
T - (412) 433-2407
E - joambler@uss.com

Kevin Lewis
Vice President
Investor Relations
T - (412) 433-6935
E - klewis@uss.com

Source: United States Steel Corporation