Chesterton Tribune



US Steel loses $234M in 3Q

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U.S. Steel Corporation (USS) is reporting a loss in the third quarter of $234 million or $1.06 per diluted share, compared to a net loss in the second quarter of $589 million or $3.36; and a net loss in the year-ago period of $84 million or 49 cents.

“In the third quarter, the U.S. Steel team continued to execute with an unwavering commitment to safety as the market recovery took hold,” USS President and CEO David Burriett said in a statement released after deadline on Thursday. “Our third-quarter results exceeded our guidance and demonstrated the power of the actions we have taken since the onset of COVID-19 with dramatically improved results in our flat-rolled segment, positive EBITDA in U.S. Steel Europe, and cash from operations of $213 million. We expect to generate positive adjusted EBITDA in the fourth quarter with excitement about our ‘Best of Both’ future.”

"I am pleased with the significant progress we have made executing our ‘Best of Both’ strategy so far this year,” Burritt added. “At the heart of our strategy is the customer, and this month we will be celebrating the successful start-up of our electric arc furnace at Fairfield and the one-year anniversary of our investment in Big River Steel. Both of these investments expand our sustainable steel offerings for our customers. It has only been a year and we are confident and enthusiastic that the strategic rationale of our partnership with Big River Steel is being validated. Our teams of leading steel technologists are already proving that sustainable, high-end steel grades previously thought impossible for mini mills can indeed be made at Big River with U.S. Steel R&D and know-how.

3Q Numbers

-- Average realized price per net ton of flat-rolled: $712 ($721 2Q; $732 year-ago).

-- Total USS and U.S. Europe shipments: 3.01 million net tons (2.53 million 2Q; 3.59 million year-ago).

-- Flat-rolled capability utilization at U.S. facilities: 52 percent (35 percent 2Q; 65 percent year-ago).

-- Raw flat-steel production: 2.2 million net tons (1.46 million 2Q; 2.7 million year-ago).

-- Flat-rolled capital expenditures: $81 million ($118 million 2Q; $263 million year-ago).

-- Intersegment shipments of flat-rolled to tubular: none (9,000 net tons 2Q; 79,000 year-ago).

-- Net sales: $2.34 billion ($2.09 billion 2Q; $3.06 billion year-ago).

-- Flat-rolled segment loss before interest and taxes: $159 million ($329 million loss 2Q; $46 million earnings year-ago).

-- U.S. Steel Europe segment earnings: $13 million ($26 million loss 2Q; $46 million loss year-ago).

-- Tubular segment loss: $52 million ($47 million loss 2Q; $25 million loss year-ago).

-- Total segment loss: $211 million ($423 million loss 2Q; $17 million loss year-ago).


Posted 10/30/2020




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