Mario Longhi is out
as CEO of U.S. Steel Corporation (USS).
Longhi tendered his
resignation, effective June 30, on Monday, although he’ll remain on the
Board of Directors and serve as an “employee of the company, providing
transitional support, until his retirement,” according to a statement
released after deadline on Wednesday.
as CEO will be David Burritt, who currently serves as the company’s
president and chief operations officer.
announcement came three weeks after USS posted a net loss of $180 million in
the first quarter of 2017.
“Mario played a key
role in driving the company’s transformation, including the successful
implementation of The Carnegie Way,” Board Chair David Sutherland said. “His
impact was felt across our company and the steel industry through his
efforts in Washington, D.C., to combat unfair trade and create a level
playing field. We thank him for his dedication to U. S. Steel.”
“When I came to the
company, I envisioned a five-year tenure, which I have completed,” Longhi
said. “I am proud of the progress we have made, which solely resides on the
people of this company. U. S. Steel employees dug in, tackled every
challenge, and never stopped looking for ways to improve everything they
could control. I am fortunate to have spent five years working with them.”
Longhi began his
career at U. S. Steel in 2012 as executive vice president and chief
operating officer. In 2013 he was promoted to president and CEO and elected
to the company’s board, at which time he launched and oversaw “a
wide-ranging business transformation” dubbed The Carnegie Way, which USS
said “generated marked cultural and operational improvements.”
Among the moves
which USS attributed directly to The Carnegie Way:
* A reduction,
announced in 2014, of the workforce involved in “operations and
business-support functions,” although the company declined at the time to
identify any target number or to say whether the reductions were to be
achieved through attrition, layoffs, or early buyouts.
* A 25-percent
downsizing, confirmed in 2016, of the company’s non-represented, salaried
* The permanent
closure, announced in 2015, of coke batteries at Gary Works and the Granite
City, Ill., Works, affecting approximately 475 workers.
* And the permanent
suspension of steelmaking operations, also announced in 2015, at the
Fairfield, Ala., Works, affecting 1,110 workers.
“We believe that
without the benefits realized through our Carnegie Way initiatives in 2014
and 2015, the corporation would have been much more negatively impacted by
market headwinds, including high levels of imports and low global commodity
prices,” USS said in April 2016.
Longhi’s tenure was
marked by a toxic mix of plunging oil prices--which devastated the company’s
formerly profitable tubular sector and impacted as well those facilities
which supplied the tubular operations--as well as by a strong U.S. dollar
and surging imports of foreign steel.
In 2016, for
instance, the average realized price per net ton of flat-rolled was $666,
down 14 percent from a four-year high in 2014 of $772 per net ton. Also in
2016, the company shipped a total of 14.9 million net tons, down 27 percent
from the four-year high in 2013 of 20.4 million net tons.
Of Longhi’s four
years at the helm, only one was profitable: 2014, with USS posting a net
income of $102 million. Net losses over those four years, however, totaled