Chesterton Tribune

 

 

US Steel posts 2Q profit of $214 million

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By KEVIN NEVERS

U.S. Steel Corporation (USS) is reporting net earnings of $214 million or $1.20 per diluted share in the second quarter of 2018, compared to $18 million or 10 cents in the first quarter and $261 million or $1.48 in the year-ago period.

“In the second quarter, our team performed well by responding quickly to customer demand,” USS President and CEO David Burnett said. “We re-started steelmaking at Granite City ahead of schedule and safely ramped up production and shipments faster than planned. In addition, a very strong shipping performance in late June enabled us to deliver higher than expected earnings.”

Outlook

“The success to date of our ongoing $2 billion asset revitalization program, as well as our earnings power in the current market, makes us increasingly optimistic about future investments that will drive long-term profitable growth.”

Specifically, the company is projecting adjusted EBITDA in the third quarter (earnings before interest, taxes, depreciation, and amortization) of $525 million. “We expect our flat-rolled segment results to continue to improve as more of our adjustable contract and spot shipments realize the benefit of second quarter increases in index prices, partially offset by higher planned outage costs. We expect results for our tubular segment to turn positive as selling price increases catch up to the rising substrate costs we saw in the first half of the year. We expect results for our European segment to be lower in the third quarter, primarily due to planned outages that coincide with normal seasonal customer demand patterns.”

USS increased its full-year adjusted EBITDA guidance to approximately $1.85 to $1.9 billion.

2Q Numbers

* Flat-rolled segment earnings: $224 million ($33 million in 1Q, $220 million in the year-ago).

* U.S. Steel Europe (USSE) earnings: $115 million ($110 in 1Q, $55 million in the year-ago).

* Tubular segment earnings: a loss of $35 million (a loss of $27 million in 1Q, a loss of $28 million in the year-ago).

* Other business segment earnings: $17 million ($11 million in 1Q, $9 million in the year-ago).

* Average realized price per net ton of flat-rolled: $819 ($740 in 1Q, $742 in the year-ago).

* Total USS and USSE shipments: 3.94 million net tons (3.84 million in 1Q, 3.83 million in the year-ago).

* Flat-rolled capability at U.S. facilities: 67 percent (66 percent in 1Q, 64 percent in the year-ago).

* Raw flat-rolled steel production at U.S. facilities: 2.84 million net tons (2.78 million in 1Q, 2.71 million in the year-ago).

* Flat-rolled capital expenditures: $142 million ($176 million in 1Q, $47 million in the year-ago).

* Intersegment shipments of flat-rolled to tubular: 65,000 net tons (67,000 net tons in 1Q, 94,000 net tons in the year-ago).

* Net sales: $3.6 billion ($3.14 billion in 1Q, $3.14 billion in the year-ago).

 

 

Posted 8/2/2018

 

 
 
 
 

 

 

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