-
Third quarter net earnings of $490 million. Reported net earnings per diluted share of $1.85
-
Third quarter adjusted net earnings of $516 million. Adjusted net earnings per diluted share of $1.95
-
Third quarter adjusted EBITDA of $848 million
PITTSBURGH--(BUSINESS WIRE)--
United States Steel Corporation (NYSE: X) reported third quarter 2022 net earnings of $490 million, or $1.85per diluted share. Adjusted net earnings for the third quarter 2022 was $516 million, or$1.95 per diluted share and excluded the impact of restructuring and other one-time items detailed in the reconciliation of adjusted net earnings table. This compares to our all-time best record third quarter 2021 net earnings of $2,002 million, or $6.97 per diluted share. Adjusted net earnings for the third quarter 2021 was $1,638 million, or $5.70 per diluted share and excluded the impact of one-time items detailed in the reconciliation of adjusted net earnings table.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20221027005946/en/
Commenting on the third quarter 2022 performance, U. S. Steel President and Chief Executive Officer David B. Burritt said, “We delivered another solid quarter and are on pace for our second-best financial year ever and a third consecutive year of record safety performance. Continued profitability and prudent working capital management resulted in healthy free cash flow that supported our strategic initiatives. Our assets are running well to deliver high-quality steel, safely and reliably to our customers.”
Burritt continued, “Demand headwinds persisted through the third quarter. Across our integrated steelmaking mills, we responded quickly with footprint actions aligning supply with the current flat-rolled order book. The impact of these headwinds in our Mini Mill and U. S. Steel Europe segments were worsened by temporarily higher than normal raw material expenses in the quarter, as we worked through inventories built in response to the Ukrainian conflict. While we expect to work through these costlier raw materials through year-end, we remain focused on the opportunity to in-source Mini Mill metallics as a competitive cost advantage. Results for U. S. Steel Europe were also negatively impacted by escalating energy costs, which we expect will also remain high. Our Tubular segment continued to deliver sequential improvements, reliably serving strong demand in domestic energy end markets.”
Burritt concluded, “We are executing our Best for All® strategy with confidence, supported by record cash of nearly $3.4 billion at quarter-end and our strong balance sheet. At year-end, we expect nearly 40% of our strategic investments to be complete and they remain on-time and on-budget. These projects are expanding our competitive advantages in pursuit of our goal to provide lower carbon steel solutions for our customers with less capital intensity while improving the free cash flow and margin performance of the business.”
Earnings Highlights
|
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
(Dollars in millions, except per share amounts)
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
Net Sales
|
$
|
5,203
|
|
$
|
5,964
|
|
$
|
16,727
|
|
$
|
14,653
|
|
Segment earnings (loss) before interest and income taxes
|
|
|
|
|
Flat-Rolled
|
|
505
|
|
|
1,015
|
|
|
1,795
|
|
|
1,740
|
|
Mini Mill (a)
|
|
1
|
|
|
424
|
|
|
549
|
|
|
840
|
|
U. S. Steel Europe
|
|
(32
|
)
|
|
394
|
|
|
512
|
|
|
706
|
|
Tubular
|
|
155
|
|
|
—
|
|
|
339
|
|
|
(29
|
)
|
Other
|
|
21
|
|
|
(2
|
)
|
|
16
|
|
|
20
|
|
Total segment earnings before interest and income taxes
|
$
|
650
|
|
$
|
1,831
|
|
$
|
3,211
|
|
$
|
3,277
|
|
Other items not allocated to segments
|
|
(36
|
)
|
|
511
|
|
|
(225
|
)
|
|
524
|
|
Earnings before interest and income taxes
|
$
|
614
|
|
$
|
2,342
|
|
$
|
2,986
|
|
$
|
3,801
|
|
Net interest and other financial (benefits) costs
|
|
(30
|
)
|
|
80
|
|
|
(48
|
)
|
|
472
|
|
Income tax expense
|
|
154
|
|
|
260
|
|
|
684
|
|
|
224
|
|
Net earnings
|
$
|
490
|
|
$
|
2,002
|
|
$
|
2,350
|
|
$
|
3,105
|
|
Earnings per diluted share
|
$
|
1.85
|
|
$
|
6.97
|
|
$
|
8.38
|
|
$
|
11.13
|
|
|
|
|
|
|
Adjusted net earnings (b)
|
$
|
516
|
|
$
|
1,638
|
|
$
|
2,518
|
|
$
|
2,970
|
|
Adjusted net earnings per diluted share (b)
|
$
|
1.95
|
|
$
|
5.70
|
|
$
|
8.98
|
|
$
|
10.64
|
|
Adjusted earnings before interest, income taxes, depreciation and amortization (EBITDA) (b)
|
$
|
848
|
|
$
|
2,027
|
|
$
|
3,805
|
|
$
|
3,864
|
|
(a) The Mini Mill was segment added after January 15, 2021 with the purchase of the remaining equity interest in Big River Steel.
|
(b) Please refer to the non-GAAP Financial Measures section of this document for the reconciliation of these amounts.
|
*****
The Company will conduct a conference call on the third quarter 2022 earnings on Friday, October 28, 2022, at 8:30 a.m. Eastern. 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. Replay will be available on the website after 10:30 a.m. on October 28, 2022.
UNITED STATES STEEL CORPORATION
|
PRELIMINARY SUPPLEMENTAL STATISTICS (Unaudited)
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2022
|
|
|
2021
|
|
|
|
2022
|
|
|
2021
|
|
OPERATING STATISTICS
|
|
|
|
|
|
Average realized price: ($/net ton unless otherwise noted) (a)
|
|
|
|
|
|
|
Flat-Rolled
|
|
1,232
|
|
|
1,325
|
|
|
|
1,312
|
|
|
1,097
|
|
|
Mini Mill (b)
|
|
1,096
|
|
|
1,517
|
|
|
|
1,268
|
|
|
1,255
|
|
|
U. S. Steel Europe
|
|
1,021
|
|
|
1,143
|
|
|
|
1,121
|
|
|
932
|
|
|
U. S. Steel Europe (€/net ton)
|
|
1,013
|
|
|
969
|
|
|
|
1,049
|
|
|
779
|
|
|
Tubular
|
|
3,217
|
|
|
1,702
|
|
|
|
2,761
|
|
|
1,587
|
|
|
|
|
|
|
|
Steel shipments (thousands of net tons): (a)
|
|
|
|
|
|
|
Flat-Rolled
|
|
2,176
|
|
|
2,328
|
|
|
|
6,488
|
|
|
6,986
|
|
|
Mini Mill (b)
|
|
529
|
|
|
608
|
|
|
|
1,651
|
|
|
1,671
|
|
|
U. S. Steel Europe
|
|
867
|
|
|
1,064
|
|
|
|
3,044
|
|
|
3,274
|
|
|
Tubular
|
|
126
|
|
|
123
|
|
|
|
390
|
|
|
317
|
|
|
Total Steel Shipments
|
|
3,698
|
|
|
4,123
|
|
|
|
11,573
|
|
|
12,248
|
|
|
|
|
|
|
|
|
Intersegment steel (unless otherwise noted) shipments (thousands of net tons):
|
|
|
|
|
|
|
Flat-Rolled to USSE [iron ore (pellets and fines) and coal]
|
|
62
|
|
|
—
|
|
|
|
144
|
|
|
—
|
|
|
Flat-Rolled to USSE
|
|
—
|
|
|
—
|
|
|
|
30
|
|
|
—
|
|
|
Flat-Rolled to Mini Mill
|
|
7
|
|
|
—
|
|
|
|
30
|
|
|
439
|
|
|
Mini Mill (b) to Flat-Rolled
|
|
53
|
|
|
114
|
|
|
|
252
|
|
|
300
|
|
|
|
|
|
|
|
|
Raw steel production (thousands of net tons):
|
|
|
|
|
|
|
Flat-Rolled
|
|
2,265
|
|
|
2,634
|
|
|
|
6,894
|
|
|
7,700
|
|
|
Mini Mill (b)
|
|
616
|
|
|
750
|
|
|
|
1,967
|
|
|
2,007
|
|
|
U. S. Steel Europe
|
|
946
|
|
|
1,274
|
|
|
|
3,250
|
|
|
3,750
|
|
|
Tubular
|
|
173
|
|
|
117
|
|
|
|
497
|
|
|
324
|
|
|
|
|
|
|
|
|
Raw steel capability utilization: (c)
|
|
|
|
|
|
|
Flat-Rolled
|
|
68
|
%
|
|
61
|
%
|
|
|
70
|
%
|
|
61
|
%
|
|
Mini Mill (b)
|
|
74
|
%
|
|
90
|
%
|
|
|
80
|
%
|
|
86
|
%
|
|
U. S. Steel Europe
|
|
75
|
%
|
|
101
|
%
|
|
|
87
|
%
|
|
100
|
%
|
|
Tubular
|
|
76
|
%
|
|
52
|
%
|
|
|
74
|
%
|
|
48
|
%
|
|
|
|
|
|
|
|
CAPITAL EXPENDITURES (dollars in millions)
|
|
|
|
|
|
|
Flat-Rolled
|
|
136
|
|
|
105
|
|
|
|
365
|
|
|
272
|
|
|
Mini Mill (b)
|
|
320
|
|
|
46
|
|
|
|
710
|
|
|
102
|
|
|
U. S. Steel Europe
|
|
19
|
|
|
13
|
|
|
|
53
|
|
|
39
|
|
|
Tubular
|
|
3
|
|
|
12
|
|
|
|
10
|
|
|
46
|
|
|
Other Businesses
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
1
|
|
|
Total
|
$
|
478
|
|
$
|
176
|
|
|
$
|
1,138
|
|
$
|
460
|
|
(a) Excludes intersegment shipments.
|
(b) The Mini Mill segment was added after January 15, 2021 with the purchase of the remaining equity interest in Big River Steel.
|
(c) 2022 based on annual raw steel production capability of 13.2 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. 2021 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
September 30,
|
|
Nine Months Ended
September 30,
|
(Dollars in millions, except per share amounts)
|
|
2022
|
|
|
2021
|
|
|
|
2022
|
|
|
2021
|
|
Net Sales
|
$
|
5,203
|
|
$
|
5,964
|
|
|
$
|
16,727
|
|
$
|
14,653
|
|
|
|
|
|
|
|
Operating expenses (income):
|
|
|
|
|
|
Cost of sales
|
|
4,359
|
|
|
3,881
|
|
|
|
12,843
|
|
|
10,633
|
|
Selling, general and administrative expenses
|
|
95
|
|
|
108
|
|
|
|
324
|
|
|
316
|
|
Depreciation, depletion and amortization
|
|
198
|
|
|
196
|
|
|
|
594
|
|
|
587
|
|
Earnings from investees
|
|
(71
|
)
|
|
(57
|
)
|
|
|
(202
|
)
|
|
(106
|
)
|
Gain on sale of Transtar
|
|
—
|
|
|
(506
|
)
|
|
|
—
|
|
|
(506
|
)
|
Asset impairment charges
|
|
—
|
|
|
—
|
|
|
|
157
|
|
|
28
|
|
Gain on equity investee transactions
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
(111
|
)
|
Restructuring and other charges
|
|
23
|
|
|
—
|
|
|
|
57
|
|
|
37
|
|
Net (gain) loss on sale of assets
|
|
(6
|
)
|
|
7
|
|
|
|
(10
|
)
|
|
(8
|
)
|
Other gains, net
|
|
(9
|
)
|
|
(7
|
)
|
|
|
(22
|
)
|
|
(18
|
)
|
Total operating expenses
|
|
4,589
|
|
|
3,622
|
|
|
|
13,741
|
|
|
10,852
|
|
|
|
|
|
|
|
Earnings before interest and income taxes
|
|
614
|
|
|
2,342
|
|
|
|
2,986
|
|
|
3,801
|
|
Net interest and other financial (benefits) costs
|
|
(30
|
)
|
|
80
|
|
|
|
(48
|
)
|
|
472
|
|
|
|
|
|
|
|
Earnings before income taxes
|
|
644
|
|
|
2,262
|
|
|
|
3,034
|
|
|
3,329
|
|
Income tax expense
|
|
154
|
|
|
260
|
|
|
|
684
|
|
|
224
|
|
|
|
|
|
|
|
Net earnings
|
|
490
|
|
|
2,002
|
|
|
|
2,350
|
|
|
3,105
|
|
Less: Net earnings attributable to noncontrolling interests
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
Net earnings attributable to United States Steel Corporation
|
$
|
490
|
|
$
|
2,002
|
|
|
$
|
2,350
|
|
$
|
3,105
|
|
|
|
|
|
|
|
COMMON STOCK DATA:
|
|
|
|
|
|
Net earnings per share attributable to United States Steel Corporation Stockholders
|
|
|
|
|
|
Basic
|
$
|
2.07
|
|
$
|
7.41
|
|
|
$
|
9.33
|
|
$
|
11.80
|
|
Diluted
|
$
|
1.85
|
|
$
|
6.97
|
|
|
$
|
8.38
|
|
$
|
11.13
|
|
Weighted average shares, in thousands
|
|
|
|
|
|
Basic
|
|
237,094
|
|
|
270,175
|
|
|
|
251,848
|
|
|
263,209
|
|
Diluted
|
|
266,264
|
|
|
287,463
|
|
|
|
281,569
|
|
|
279,103
|
|
Dividends paid per common share
|
$
|
0.05
|
|
$
|
0.01
|
|
|
$
|
0.15
|
|
$
|
0.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNITED STATES STEEL CORPORATION
|
CONDENSED CASH FLOW STATEMENT (Unaudited)
|
|
|
Nine Months Ended September 30,
|
(Dollars in millions)
|
|
2022
|
|
|
|
2021
|
|
Increase (decrease) in cash, cash equivalents and restricted cash
|
Operating activities:
|
|
|
|
|
Net earnings
|
$
|
2,350
|
|
|
$
|
3,105
|
|
|
Depreciation, depletion and amortization
|
|
594
|
|
|
|
587
|
|
|
Gain on sale of Transtar
|
|
—
|
|
|
|
(506
|
)
|
|
Asset impairment charges
|
|
157
|
|
|
|
28
|
|
|
Gain on equity investee transactions
|
|
—
|
|
|
|
(111
|
)
|
|
Restructuring and other charges
|
|
57
|
|
|
|
37
|
|
|
Loss on debt extinguishment
|
|
—
|
|
|
|
282
|
|
|
Pensions and other postretirement benefits
|
|
(164
|
)
|
|
|
(88
|
)
|
|
Deferred income taxes
|
|
561
|
|
|
|
59
|
|
|
Working capital changes
|
|
(545
|
)
|
|
|
(852
|
)
|
|
Income taxes receivable/payable
|
|
(88
|
)
|
|
|
137
|
|
|
Other operating activities
|
|
(172
|
)
|
|
|
(73
|
)
|
Net cash provided by operating activities
|
|
2,750
|
|
|
|
2,605
|
|
|
|
|
|
|
Investing activities:
|
|
|
|
|
Capital expenditures
|
|
(1,138
|
)
|
|
|
(460
|
)
|
|
Acquisition of Big River Steel, net of cash acquired
|
|
—
|
|
|
|
(625
|
)
|
|
Proceeds from sale of Transtar
|
|
—
|
|
|
|
627
|
|
|
Proceeds from cost reimbursement government grants
|
|
53
|
|
|
|
—
|
|
|
Proceeds from sale of assets
|
|
28
|
|
|
|
25
|
|
|
Other investing activities
|
|
(8
|
)
|
|
|
(3
|
)
|
Net cash used in investing activities
|
|
(1,065
|
)
|
|
|
(436
|
)
|
|
|
|
|
|
Financing activities:
|
|
|
|
|
Repayment of short-term debt
|
|
—
|
|
|
|
(180
|
)
|
|
Revolving credit facilities - borrowings, net of financing costs
|
|
—
|
|
|
|
50
|
|
|
Revolving credit facilities - repayments
|
|
—
|
|
|
|
(911
|
)
|
|
Issuance of long-term debt, net of financing costs
|
|
291
|
|
|
|
862
|
|
|
Repayment of long-term debt
|
|
(375
|
)
|
|
|
(2,719
|
)
|
|
Net proceeds from public offering of common stock
|
|
—
|
|
|
|
790
|
|
|
Common stock repurchased
|
|
(699
|
)
|
|
|
—
|
|
|
Proceeds from government incentives
|
|
82
|
|
|
|
—
|
|
|
Other financing activities
|
|
(51
|
)
|
|
|
(12
|
)
|
Net cash used in financing activities
|
|
(752
|
)
|
|
|
(2,120
|
)
|
|
|
|
|
|
Effect of exchange rate changes on cash
|
|
(46
|
)
|
|
|
(15
|
)
|
|
|
|
|
|
Net increase in cash, cash equivalents and restricted cash
|
|
887
|
|
|
|
34
|
|
Cash, cash equivalents and restricted cash at beginning of year
|
|
2,600
|
|
|
|
2,118
|
|
|
|
|
|
|
Cash, cash equivalents and restricted cash at end of period
|
$
|
3,487
|
|
|
$
|
2,152
|
|
|
|
|
|
|
|
|
|
UNITED STATES STEEL CORPORATION
|
CONDENSED BALANCE SHEET (Unaudited)
|
|
|
September 30,
|
|
December 31,
|
(Dollars in millions)
|
2022
|
|
2021
|
Cash and cash equivalents
|
$
|
3,364
|
|
$
|
2,522
|
Receivables, net
|
|
2,035
|
|
|
2,089
|
Inventories
|
|
2,759
|
|
|
2,210
|
Other current assets
|
|
294
|
|
|
331
|
|
Total current assets
|
|
8,452
|
|
|
7,152
|
Operating lease assets
|
|
154
|
|
|
185
|
Property, plant and equipment, net
|
|
7,978
|
|
|
7,254
|
Investments and long-term receivables, net
|
|
832
|
|
|
694
|
Intangible, net
|
|
488
|
|
|
519
|
Goodwill
|
|
920
|
|
|
920
|
Other noncurrent assets
|
|
1,134
|
|
|
1,092
|
|
|
|
|
|
|
Total assets
|
$
|
19,958
|
|
$
|
17,816
|
|
|
|
|
|
Accounts payable and other accrued liabilities
|
|
3,280
|
|
|
2,908
|
Payroll and benefits payable
|
|
482
|
|
|
425
|
Short-term debt and current maturities of long-term debt
|
|
59
|
|
|
28
|
Other current liabilities
|
|
341
|
|
|
491
|
|
Total current liabilities
|
|
4,162
|
|
|
3,852
|
Noncurrent operating lease liabilities
|
|
112
|
|
|
136
|
Long-term debt, less unamortized discount and debt issuance costs
|
|
3,863
|
|
|
3,863
|
Employee benefits
|
|
204
|
|
|
235
|
Other long-term liabilities
|
|
1,087
|
|
|
627
|
United States Steel Corporation stockholders' equity
|
|
10,437
|
|
|
9,010
|
Noncontrolling interests
|
|
93
|
|
|
93
|
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
$
|
19,958
|
|
$
|
17,816
|
|
|
|
|
|
|
|
UNITED STATES STEEL CORPORATION
|
NON-GAAP FINANCIAL MEASURES
|
RECONCILIATION OF ADJUSTED NET EARNINGS
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
(In millions of dollars)
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net earnings and diluted net earnings per share attributable to United States Steel Corporation, as reported
|
$
|
490
|
|
$
|
1.85
|
|
$
|
2,002
|
|
$
|
6.97
|
|
$
|
2,350
|
|
$
|
8.38
|
|
$
|
3,105
|
|
$
|
11.13
|
|
Restructuring and other charges
|
|
23
|
|
|
|
|
—
|
|
|
|
|
57
|
|
|
|
|
37
|
|
|
|
Asset impairment charges
|
|
—
|
|
|
|
|
—
|
|
|
|
|
157
|
|
|
|
|
28
|
|
|
|
Other charges, net
|
|
13
|
|
|
|
|
(12
|
)
|
|
|
|
11
|
|
|
|
|
36
|
|
|
|
Losses (gains) on assets sold and previously held investments
|
|
—
|
|
|
|
|
7
|
|
|
|
|
—
|
|
|
|
|
(119
|
)
|
|
|
Gain on sale of Transtar
|
|
—
|
|
|
|
|
(506
|
)
|
|
|
|
—
|
|
|
|
|
(506
|
)
|
|
|
(Gains) losses on debt extinguishment
|
|
(2
|
)
|
|
|
|
26
|
|
|
|
|
(2
|
)
|
|
|
|
280
|
|
|
Adjusted pre-tax net earnings to United States Steel Corporation
|
|
524
|
|
|
|
|
1,517
|
|
|
|
|
2,573
|
|
|
|
|
2,861
|
|
|
|
Tax impact of adjusted items (a)
|
|
(8
|
)
|
|
|
|
121
|
|
|
|
|
(55
|
)
|
|
|
|
109
|
|
|
Adjusted net earnings and diluted net earnings per share attributable to United States Steel Corporation (b)
|
|
516
|
|
$
|
1.95
|
|
|
1,638
|
|
$
|
5.70
|
|
|
2,518
|
|
$
|
8.98
|
|
|
2,970
|
|
$
|
10.64
|
Weight average diluted ordinary shares outstanding, in millions
|
|
266.3
|
|
|
|
|
287.5
|
|
|
|
|
281.6
|
|
|
|
|
279.1
|
|
|
(a) The tax impact of adjusted items was calculated through the first half of 2022 using a blended tax rate of 25% and for the third quarter of 2022 using a blended tax rate of 25% for domestic and 21% for USSE items.
|
(b) Diluted net earnings per share were adjusted by increasing adjusted net earnings by $3 million for the three months ended September 30, 2022, and by $10 million for the nine months ended September 30, 2022 for the adoption of ASU 2020-06 which assumes outstanding convertible notes are converted to shares at the beginning of the period.
|
Note: The reported net earnings attributable to U. S. Steel for the three and nine months ended September 30, 2021 and for the nine months ended September 30, 2022 includes income tax benefits of $25 million, $120 million and $7 million, respectively, from the reversals of net valuation allowances. These items were presented as adjustments to arrive at Adjusted net earnings attributable to U. S. Steel in prior period presentations. The reconciliations for the three and nine months ended September 30, 2021 presented above have been recast to reflect the removal of these adjustments in accordance with Securities and Exchange Commission guidance.
|
UNITED STATES STEEL CORPORATION
|
NON-GAAP FINANCIAL MEASURES
|
RECONCILIATION OF ADJUSTED EBITDA
|
|
|
Three Months Ended September 30,
|
Nine Months Ended
September 30,
|
(Dollars in millions)
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
Reconciliation to Adjusted EBITDA
|
|
|
|
|
|
Net earnings attributable to United States Steel Corporation
|
$
|
490
|
|
$
|
2,002
|
|
$
|
2,350
|
|
$
|
3,105
|
|
|
Income tax expense
|
|
154
|
|
|
260
|
|
|
684
|
|
|
224
|
|
|
Net interest and other financial (benefits) costs
|
|
(30
|
)
|
|
80
|
|
|
(48
|
)
|
|
472
|
|
|
Depreciation, depletion and amortization expense
|
|
198
|
|
|
196
|
|
|
594
|
|
|
587
|
|
EBITDA
|
|
812
|
|
|
2,538
|
|
|
3,580
|
|
|
4,388
|
|
|
Restructuring and other charges
|
|
23
|
|
|
—
|
|
|
57
|
|
|
37
|
|
|
Asset impairment charges
|
|
—
|
|
|
—
|
|
|
157
|
|
|
28
|
|
|
Other charges, net
|
|
13
|
|
|
(12
|
)
|
|
11
|
|
|
36
|
|
|
Losses (gains) on assets sold and previously held investments
|
|
—
|
|
|
7
|
|
|
—
|
|
|
(119
|
)
|
|
Gain on sale of Transtar
|
|
—
|
|
|
(506
|
)
|
|
—
|
|
|
(506
|
)
|
Adjusted EBITDA
|
|
848
|
|
|
2,027
|
|
|
3,805
|
|
|
3,864
|
|
UNITED STATES STEEL CORPORATION
|
NON-GAAP FINANCIAL MEASURES
|
RECONCILIATION OF FREE CASH FLOW
|
|
Nine Months Ended September 30,
|
(Dollars in millions)
|
|
2022
|
|
|
2021
|
|
Net cash provided by operating activities
|
$
|
2,750
|
|
$
|
2,605
|
|
Net cash used in investing activities
|
|
(1,065
|
)
|
|
(436
|
)
|
Cash used in dividends paid
|
|
(38
|
)
|
|
(8
|
)
|
Free cash flow
|
$
|
1,647
|
|
$
|
2,161
|
|
UNITED STATES STEEL CORPORATION
|
NON-GAAP FINANCIAL MEASURES
|
RECONCILIATION OF PAST TWELVE MONTHS OF FREE CASH FLOW
|
|
4th
|
1st
|
2nd
|
3nd
|
|
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Total of the
|
(Dollars in millions)
|
|
2021
|
|
|
2022
|
|
|
2022
|
|
|
2022
|
|
Four Quarters
|
Net cash provided by operating activities
|
$
|
1,485
|
|
$
|
771
|
|
$
|
905
|
|
$
|
1,074
|
|
|
4,235
|
|
Net cash used in investing activities
|
|
(404
|
)
|
|
(352
|
)
|
|
(250
|
)
|
|
(463
|
)
|
|
(1,469
|
)
|
Cash used in dividends paid
|
|
(15
|
)
|
|
(13
|
)
|
|
(13
|
)
|
|
(12
|
)
|
|
(53
|
)
|
Free cash flow
|
$
|
1,066
|
|
$
|
406
|
|
$
|
642
|
|
$
|
599
|
|
$
|
2,713
|
|
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 and adjusted net earnings per diluted share are non-GAAP measures that exclude the effects of items that include: restructuring and other charges, asset impairment charges, losses (gains) on asset sold and previously held investments, gain on sale of Transtar, (gains) losses on debt extinguishment, tax impact of adjusted items, and other charges, net (Adjustment Items). Adjusted EBITDA is also a non-GAAP measure that excludes the effects of certain 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. U. S. Steel’s management considers adjusted net earnings, adjusted net earnings 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, 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 is not necessarily comparable to similarly titled measures used by other companies.
We also present free cash flow, a non-GAAP measure of cash generated from operations, after any investing activity and dividends paid to stockholders. We believe that free cash flow provides further insight into the Company's overall utilization of cash. 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,” “plan,” “goal,” “future,” “will,” “may,” and similar expressions or by using future dates in connection with any discussion of, among other things, financial performance, the construction or operation of new and existing facilities, the timing, size and form of share repurchase transactions, 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, 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.
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/20221027005946/en/
Arista Joyner
Manager
Corporate Communications
T - (412) 433-3994
E - AEjoyner@uss.com
Kevin Lewis
Vice President
Investor Relations
T - (412) 433-6935
E - KLewis@uss.com
Source: United States Steel Corporation