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United States Steel Corporation Reports Fourth Quarter and Full-Year 2020 Results

  • Fourth quarter 2020 net earnings of $49 million, or $0.22 per diluted share; full-year 2020 net loss of $1,165 million, or $5.92 per diluted share.
  • Fourth quarter 2020 adjusted net loss of $60 million, or $0.27 per diluted share; full-year 2020 adjusted net loss of $920 million, or $4.67 per diluted share.
  • Fourth quarter 2020 adjusted EBITDA of $87 million; full-year 2020 adjusted EBITDA of $(162) million.
  • Liquidity of $3.153 billion, including cash of $1.985 billion.

PITTSBURGH--(BUSINESS WIRE)-- United States Steel Corporation (NYSE: X) reported fourth quarter 2020 net earnings of $49 million, or $0.22 per diluted share. Adjusted net loss was $60 million, or $0.27 per diluted share. This compares to fourth quarter 2019 net loss of $668 million, or $3.93 per diluted share. Adjusted net loss for the fourth quarter 2019 was $109 million, or $0.64 per diluted share.

Full-year 2020 net loss was $1,165 million, or $5.92 per diluted share. Adjusted net loss was $920 million, or $4.67 per diluted share. This compares to full-year 2019 net loss of $630 million, or $3.67 per diluted share. Adjusted net earnings for 2019 were $15 million, or $0.09 per diluted share.

 

Earnings Highlights

 

 

Quarter Ended

 

Year Ended

 

December 31,

 

December 31,

(Dollars in millions, except per share amounts)

2020

 

2019

 

2020

 

2019

Net Sales

$

2,562

 

 

$

2,824

 

 

$

9,741

 

 

$

12,937

 

Segment (loss) earnings before interest and income taxes

 

 

 

 

 

 

 

Flat-Rolled

$

(73

)

 

$

(79

)

 

$

(596

)

 

$

196

 

U. S. Steel Europe

36

 

 

(30

)

 

9

 

 

(57

)

Tubular

(32

)

 

(46

)

 

(179

)

 

(67

)

Other Businesses

(6

)

 

(3

)

 

(39

)

 

23

 

Total segment (loss) earnings before interest and income taxes

$

(75

)

 

$

(158

)

 

$

(805

)

 

$

95

 

Other items not allocated to segments

118

 

 

(218

)

 

(270

)

 

(325

)

Earnings (loss) before interest and income taxes

$

43

 

 

$

(376

)

 

$

(1,075

)

 

$

(230

)

Net interest and other financial costs

88

 

 

71

 

 

232

 

 

222

 

Income tax (benefit) provision

(94

)

 

221

 

 

(142

)

 

178

 

Net earnings (loss)

$

49

 

 

$

(668

)

 

$

(1,165

)

 

$

(630

)

Earnings (loss) per diluted share

$

0.22

 

 

$

(3.93

)

 

$

(5.92

)

 

$

(3.67

)

 

 

 

 

 

 

 

 

Adjusted net (loss) earnings (a)

$

(60

)

 

$

(109

)

 

$

(920

)

 

$

15

 

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

$

(0.27

)

 

$

(0.64

)

 

$

(4.67

)

 

$

0.09

 

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

$

87

 

 

$

4

 

 

$

(162

)

 

$

711

 

(a)

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

   

“We finished 2020 strong and are optimistic about the opportunity to deliver incremental value for our stakeholders in 2021,” said U. S. Steel President and CEO David B. Burritt. “Our fourth quarter adjusted EBITDA of $87 million is only just beginning to show the potential of our earnings growth as we begin to realize the benefits of higher prices, adaptive operations, and our continued focus on cost management. Our performance continues to strengthen as we enter 2021 and we are bullish that the market will continue to be fueled by robust demand, low inventories, and supportive raw material prices.”

Commenting on its Best of BothSM strategy execution in 2020, Burritt continued, “The team at U. S. Steel created unprecedented value in the trough by continuing our transformation into a world-competitive, Best of Both steel producer. By keeping the business resilient, we were able to execute our number one strategic priority to acquire the remaining stake in Big River Steel. With Big River Steel now fully part of the U. S. Steel portfolio, we are well positioned to drive significant earnings growth while delivering our customers an unmatched value proposition. Our future starts now and we cannot wait to show the world the value that the only Best of Both steel company can create.”

*****

The Company will conduct a conference call on the fourth quarter and full-year 2020 earnings on Friday, January 29, at 8:30 a.m. Eastern Standard. 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 January 29.

 

UNITED STATES STEEL CORPORATION

PRELIMINARY SUPPLEMENTAL STATISTICS (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

 

Year Ended

 

 

December 31,

 

December 31,

 

 

2020

 

2019

 

2020

 

2019

OPERATING STATISTICS

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

Flat-Rolled

731

 

 

699

 

 

718

 

 

753

 

 

U. S. Steel Europe

652

 

 

622

 

 

626

 

 

652

 

 

U. S. Steel Europe (€/net ton)

547

 

 

562

 

 

549

 

 

582

 

 

Tubular

1,267

 

 

1,298

 

 

1,271

 

 

1,450

 

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

 

 

 

 

 

 

 

 

Flat-Rolled

2,257

 

 

2,517

 

 

8,711

 

 

10,700

 

 

U. S. Steel Europe

840

 

 

757

 

 

3,041

 

 

3,590

 

 

Tubular

74

 

 

193

 

 

464

 

 

769

 

 

Total Steel Shipments

3,171

 

 

3,467

 

 

12,216

 

 

15,059

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

Flat-Rolled to Tubular

 

 

46

 

 

101

 

 

258

 

 

Flat-Rolled to U. S. Steel Europe (iron ore pellets and fines)

506

 

 

 

 

1,418

 

 

424

 

Raw steel production (thousands of net tons):

 

 

 

 

 

 

 

 

Flat-Rolled

2,490

 

 

2,567

 

 

9,313

 

 

11,409

 

 

U. S. Steel Europe

966

 

 

773

 

 

3,366

 

 

3,903

 

 

Tubular

16

 

 

 

 

16

 

 

 

Raw steel capability utilization:(b)

 

 

 

 

 

 

 

 

Flat-Rolled

58

%

 

60

%

 

55

%

 

67

%

 

U. S. Steel Europe

77

%

 

61

%

 

67

%

 

78

%

 

Tubular (c)

7

%

 

%

 

7

%

 

%

 

 

 

 

 

 

 

 

 

CAPITAL EXPENDITURES (dollars in millions)

 

 

 

 

 

 

 

 

Flat-Rolled

$

93

 

 

$

179

 

 

$

484

 

 

$

943

 

 

U. S. Steel Europe

15

 

 

42

 

 

79

 

 

153

 

 

Tubular

26

 

 

48

 

 

159

 

 

145

 

 

Other Businesses

 

 

5

 

 

3

 

 

11

 

 

Total

$

134

 

 

$

274

 

 

$

725

 

 

$

1,252

 

(a) Excludes intersegment shipments.

(b) Based on annual raw steel production capability of 17.0 million net tons for Flat-Rolled, 5.0 million net tons for U. S. Steel Europe and 0.9 million net tons for Tubular.

(c) The Fairfield Electric Arc Furnace commenced operation in October 2020. The new 1.6 million ton electric arc furnace is currently used to feed our 0.9 million ton rounds caster. As a result, the Tubular segment now has annual raw steel production capability of 0.9 million tons. The 2020 production as a % of total capability amount is based on an October 1, 2020 start date.

 

UNITED STATES STEEL CORPORATION

CONDENSED STATEMENT OF OPERATIONS (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

 

Year Ended

 

 

December 31,

 

December 31,

(Dollars in millions, except per share amounts)

2020

 

2019

 

2020

 

2019

NET SALES

 

$

2,562

 

 

$

2,824

 

 

$

9,741

 

 

$

12,937

 

 

 

 

 

 

 

 

 

 

Operating expenses (income):

 

 

 

 

 

 

 

 

Cost of sales (excludes items shown below)

 

2,384

 

 

2,781

 

 

9,558

 

 

12,082

 

Selling, general and administrative expenses

 

75

 

 

66

 

 

274

 

 

289

 

Depreciation, depletion and amortization

 

162

 

 

162

 

 

643

 

 

616

 

Loss (earnings) from investees

 

39

 

 

(11

)

 

117

 

 

(79

)

Asset impairment charges

 

 

 

 

 

263

 

 

 

Gain on equity investee transactions

 

 

 

 

 

(31

)

 

 

Restructuring charges

 

8

 

 

221

 

 

138

 

 

275

 

Net gain on disposal of assets

 

(147

)

 

(4

)

 

(149

)

 

(1

)

Other loss (income), net

 

(2

)

 

(15

)

 

3

 

 

(15

)

Total operating expenses

 

2,519

 

 

3,200

 

 

10,816

 

 

13,167

 

 

 

 

 

 

 

 

 

 

EARNINGS (LOSS) BEFORE INTEREST AND INCOME TAXES

 

43

 

 

(376

)

 

(1,075

)

 

(230

)

Net interest and other financial costs

 

88

 

 

71

 

 

232

 

 

222

 

 

 

 

 

 

 

 

 

 

(LOSS) EARNINGS BEFORE INCOME TAXES

 

(45

)

 

(447

)

 

(1,307

)

 

(452

)

Income tax (benefit) provision

 

(94

)

 

221

 

 

(142

)

 

178

 

 

 

 

 

 

 

 

 

 

Net earnings (loss)

 

49

 

 

(668

)

 

(1,165

)

 

(630

)

Less: Net earnings (loss) attributable to noncontrolling interests

 

 

 

 

 

 

 

 

NET EARNINGS (LOSS) ATTRIBUTABLE TO UNITED STATES STEEL CORPORATION

 

$

49

 

 

$

(668

)

 

$

(1,165

)

 

$

(630

)

 

 

 

 

 

 

 

 

 

COMMON STOCK DATA:

 

 

 

 

 

 

 

 

Net (loss) earnings per share attributable to

 

 

 

 

 

 

 

 

United States Steel Corporation stockholders:

 

 

 

 

 

 

 

 

Basic

 

$

0.22

 

 

$

(3.93

)

 

$

(5.92

)

 

$

(3.67

)

Diluted

 

$

0.22

 

 

$

(3.93

)

 

$

(5.92

)

 

$

(3.67

)

Weighted average shares, in thousands

 

 

 

 

 

 

 

 

Basic

 

220,412

 

 

170,041

 

 

196,721

 

 

171,418

 

Diluted

 

223,781

 

 

170,041

 

 

196,721

 

 

171,418

 

Dividends paid per common share

 

$

0.01

 

 

$

0.05

 

 

$

0.04

 

 

$

0.20

 

 

UNITED STATES STEEL CORPORATION

CONDENSED CASH FLOW STATEMENT (Unaudited)

 

 

Year Ended

 

 

December 31,

(Dollars in millions)

2020

 

2019

Cash provided by (used in) operating activities:

 

 

 

 

Net loss

$

(1,165

)

 

$

(630

)

 

Depreciation, depletion and amortization

643

 

 

616

 

 

Asset impairment charges

263

 

 

 

 

Gain on equity investee transactions

(31

)

 

 

 

Restructuring charges

138

 

 

275

 

 

Pensions and other post-employment benefits

(21

)

 

101

 

 

Deferred income taxes

(130

)

 

202

 

 

Net gain on sale of assets

(149

)

 

(1

)

 

Working capital changes

575

 

 

276

 

 

Income taxes receivable/payable

20

 

 

13

 

 

Other operating activities

(5

)

 

(170

)

Total

138

 

 

682

 

 

 

 

 

 

Cash used in investing activities:

 

 

 

 

Capital expenditures

(725

)

 

(1,252

)

 

Investment in Big River Steel

(9

)

 

(710

)

 

Proceeds from sale of assets

167

 

 

4

 

 

Proceeds from sale of ownership interests in equity investees

8

 

 

 

 

Investments, net

(4

)

 

 

Total

(563

)

 

(1,958

)

 

 

 

 

 

Cash provided by (used in) financing activities:

 

 

 

 

Net change in short-term debt, net of financing costs

170

 

 

 

 

Revolving credit facilities - borrowings, net of financing costs

1,402

 

 

860

 

 

Revolving credit facilities - repayments

(1,621

)

 

(100

)

 

Issuance of long-term debt, net of financing costs

1,148

 

 

702

 

 

Repayment of long-term debt

(13

)

 

(155

)

 

Net proceeds from public offering of common stock

410

 

 

 

 

Proceeds from Stelco Option agreement, net of financing costs

94

 

 

 

 

Common stock repurchased

 

 

(88

)

 

Taxes paid for equity compensation plans

(1

)

 

(7

)

 

Dividends paid

(8

)

 

(35

)

Total

1,581

 

 

1,177

 

 

 

 

 

 

Effect of exchange rate changes on cash

23

 

 

(2

)

 

 

 

 

 

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

1,179

 

 

(101

)

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

939

 

 

1,040

 

 

 

 

 

 

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

$

2,118

 

 

$

939

 

 

UNITED STATES STEEL CORPORATION

CONDENSED BALANCE SHEET (Unaudited)

 

 

 

 

 

 

 

December 31,

 

December 31,

(Dollars in millions)

2020

 

2019

Cash and cash equivalents

$

1,985

 

 

$

749

 

Receivables, net

994

 

 

1,177

 

Inventories

1,402

 

 

1,785

 

Other current assets

51

 

 

102

 

 

Total current assets

4,432

 

 

3,813

 

Operating lease assets

214

 

 

230

 

Property, plant and equipment, net

5,444

 

 

5,447

 

Investments and long-term receivables, net

1,177

 

 

1,466

 

Intangible, net

129

 

 

150

 

Deferred income tax benefits

22

 

 

19

 

Other noncurrent assets

641

 

 

483

 

 

 

 

 

 

 

Total assets

$

12,059

 

 

$

11,608

 

 

 

 

 

 

Accounts payable and other accrued liabilities

1,884

 

 

2,054

 

Payroll and benefits payable

308

 

 

336

 

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

192

 

 

14

 

Other current liabilities

272

 

 

221

 

 

Total current liabilities

2,656

 

 

2,625

 

Noncurrent operating lease liabilities

163

 

 

177

 

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

4,695

 

 

3,627

 

Employee benefits

322

 

 

532

 

Other long-term liabilities

344

 

 

554

 

United States Steel Corporation stockholders' equity

3,786

 

 

4,092

 

Noncontrolling interests

93

 

 

1

 

 

 

 

 

 

 

Total liabilities and stockholders' equity

$

12,059

 

 

$

11,608

 

 

UNITED STATES STEEL CORPORATION

NON-GAAP FINANCIAL MEASURES

RECONCILIATION OF ADJUSTED NET (LOSS) EARNINGS

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

 

Year Ended

 

 

December 31,

 

December 31,

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

2020

 

2019

 

2020

 

2019

 

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

 

 

 

 

 

 

 

 

Net earnings (loss) attributable to United States Steel Corporation, as reported

$

49

 

 

(668

)

 

$

(1,165

)

 

$

(630

)

 

Asset impairment charge

 

 

 

 

263

 

 

 

 

Restructuring and other charges

8

 

 

221

 

 

131

 

 

263

 

 

Tubular inventory impairment

 

 

 

 

24

 

 

 

 

Big River Steel debt extinguishment charges (b)

18

 

 

 

 

18

 

 

 

 

Uncertain tax positions

 

 

 

 

13

 

 

 

 

Big River Steel financing costs

8

 

 

 

 

8

 

 

 

 

Big River Steel transaction and other related costs

3

 

 

 

 

3

 

 

 

 

Fairless property sale

(145

)

 

 

 

(145

)

 

 

 

Big River Steel options and forward adjustments

1

 

 

7

 

 

(39

)

 

7

 

 

Gain on previously held investment in UPI

 

 

 

 

(25

)

 

 

 

December 24, 2018 Clairton coke making facility fire

(2

)

 

(3

)

 

(6

)

 

41

 

 

Tax valuation allowance

 

 

334

 

 

 

 

334

 

Total adjustments

(109

)

 

559

 

 

245

 

 

645

 

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

$

(60

)

 

$

(109

)

 

$

(920

)

 

$

15

 

 

 

 

 

 

 

 

 

 

Reconciliation to adjusted diluted net (loss) earnings per share

 

 

 

 

 

 

 

Diluted net earnings (loss) per share

0.22

 

 

(3.93

)

 

(5.92

)

 

(3.67

)

 

Asset impairment charge

 

 

 

 

1.34

 

 

 

 

Restructuring and other charges

0.04

 

 

1.30

 

 

0.67

 

 

1.53

 

 

Tubular inventory impairment

 

 

 

 

0.12

 

 

 

 

Big River Steel debt extinguishment charges (b)

0.08

 

 

 

 

0.09

 

 

 

 

Uncertain tax positions

 

 

 

 

0.07

 

 

 

 

Big River Steel financing costs

0.04

 

 

 

 

0.04

 

 

 

 

Big River Steel transaction and other related costs

0.01

 

 

 

 

0.02

 

 

 

 

Fairless property sale

(0.66

)

 

 

 

(0.74

)

 

 

 

Big River Steel options and forward adjustments

0.01

 

 

0.04

 

 

(0.20

)

 

0.04

 

 

Gain on previously held investment in UPI

 

 

 

 

(0.13

)

 

 

 

December 24, 2018 Clairton coke making facility fire

(0.01

)

 

(0.01

)

 

(0.03

)

 

0.23

 

 

Tax valuation allowance

 

 

1.96

 

 

 

 

1.96

 

Total adjustments

(0.49

)

 

3.29

 

 

1.25

 

 

3.76

 

Adjusted diluted net (loss) earnings per share

$

(0.27

)

 

$

(0.64

)

 

$

(4.67

)

 

$

0.09

 

(a) The adjustments included in this table for the three and twelve months ended December 31, 2020 have been tax effected for our European operations and not tax effected for our U.S. operations due to the full valuation allowance on our domestic deferred tax assets. The 2019 adjustments included in this table have been tax effected through the third quarter of 2019 as a valuation allowance was not applied to our deferred tax assets until the fourth quarter of 2019.

 

(b) The Big River Steel debt extinguishment charges were related to Big River Steel refinancing activity that was recognized by U. S. Steel through its equity method income.

 
 

UNITED STATES STEEL CORPORATION

NON-GAAP FINANCIAL MEASURES

RECONCILIATION OF ADJUSTED EBITDA

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

 

Year Ended

 

 

December 31,

 

December 31,

(Dollars in millions)

2020

 

2019

 

2020

 

2019

Reconciliation to Adjusted EBITDA

 

 

 

 

 

 

 

 

Net earnings (loss) attributable to United States Steel Corporation

$

49

 

 

$

(668

)

 

$

(1,165

)

 

$

(630

)

 

Income tax (benefit) provision

(94

)

 

221

 

 

(142

)

 

178

 

 

Net interest and other financial costs

88

 

 

71

 

 

232

 

 

222

 

 

Depreciation, depletion and amortization expense

162

 

 

162

 

 

643

 

 

616

 

EBITDA

205

 

 

(214

)

 

(432

)

 

386

 

 

Asset impairment charge

 

 

 

 

263

 

 

 

 

Restructuring and other charges

8

 

 

221

 

 

138

 

 

275

 

 

Tubular inventory impairment

 

 

 

 

24

 

 

 

 

Big River Steel debt extinguishment charges

18

 

 

 

 

18

 

 

 

 

Big River Steel transaction and other related costs

3

 

 

 

 

3

 

 

 

 

Fairless property sale

(145

)

 

 

 

(145

)

 

 

 

Gain on previously held investment in UPI

 

 

 

 

(25

)

 

 

 

December 24, 2018 Clairton coke making facility fire

(2

)

 

(3

)

 

(6

)

 

50

 

Adjusted EBITDA

$

87

 

 

$

4

 

 

$

(162

)

 

$

711

 

We present adjusted net (loss) earnings, adjusted net (loss) earnings per diluted share, (loss) 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 (loss) 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 (loss) and adjusted net earnings (loss) per diluted share are non-GAAP measures that exclude the effects of items that include: the asset impairment charge, restructuring and other charges, the Fairless property sale, the Big River Steel options and forward adjustments, the December 24, 2018 Clairton coke making facility fire, the tax valuation allowance, loss on extinguishment of debt and other related costs, the USW labor agreement signing bonus and related costs, Granite City Works restart and related costs and gain on equity investee transactions that are not part of the Company's core operations (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, 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, anticipated disruptions to our operations and industry due to the COVID-19 pandemic, 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 our ability to realize the level of cost savings, productivity improvement, growth or other anticipated benefits and additional future synergies, including in the time period anticipated, of the acquisition of Big River Steel; our ability to successfully integrate the businesses of Big River Steel into our existing businesses, including uncertainties associated with maintaining relationships with customers, vendors and employees, as well as differences in operating technologies, cultures, and management philosophies that may delay successful integration; additional debt, which we assumed in connection with the acquisition of Big River Steel and incurred to enhance our liquidity during the COVID-19 pandemic, may negatively impact our credit profile and limit our financial flexibility; business strategies for the combined company's operations; the diversion of management’s attention from ongoing business operations; our ability to retain and hire key personnel, including within the Big River Steel business, and to access our distribution channels, including the availability of workforce and subcontractors; potential adverse reactions or changes to business relationships resulting from the completion of the acquisition of Big River Steel; unknown or underestimated liabilities and unforeseen increased expenses or delays associated with the acquisition and integration beyond current estimates; and the risks and uncertainties described in “Item 1A. Risk Factors” of our Annual report on Form 10-K, quarterly reports on Form 10-Q 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.

Founded in 1901, the United States Steel Corporation is a Fortune 250 company and a leading steel producer. Together with its subsidiary Big River Steel and an unwavering focus on safety, the company’s customer-centric Best of BothSM world-competitive integrated and mini mill technology 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.

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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