Chesterton Tribune

 

 

US Steel posts $387M profit in 2017

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By KEVIN NEVERS

U.S. Steel Corporation (USS) is reporting net earnings in 2017 of $387 million or $2.19 per diluted share, compared to a net loss in 2016 of $440 million or $2.81.

USS is also reporting net earnings in 4Q 2017 of $159 million or 90 cents per diluted share, compared to a net loss in the year-ago period of $105 million or 61 cents.

“We finished the year with three solid quarters as investments in our assets helped to provide more stable operating performance, and results for all three of our reportable segments were in line with our expectations,” President and CEO David Burritt said. “We made good progress on our asset revitalization program in 2017, achieved the quality and reliability improvements we committed to for 2017, and are confident that we will achieve our 2018 improvement objectives.”

The company reported that net debt decreased in 2017 by more than $300 million, to approximately $1.15 billion; and that total liquidity increased by more than $400 million, ending the year at $3.35 billion. “The improving strength of our balance sheet and total liquidity supports the continued implementation of our asset revitalization program in our flat-rolled segment, as well as increasing investment in our tubular and European businesses.”

Outlook

“Our focus in 2018 remains on improving the fundamental drivers of our business--safety, quality, delivery, and cost--and we expect the performance momentum from 2017 to continue,” Burritt said. “We will continue to provide our employees with the support and resources they need to succeed. When our employees succeed, our customers succeed. When our customers succeed, U.S. Steel succeeds.”

If market conditions remain at their Jan. 24, 2018, levels, USS said, annual net earnings should total approximately $685 billion or $3.88 per diluted share, and EBITDA of around $1.5 billion.

“We believe market conditions, which include spot prices, raw material costs, customer demand, import volumes, supply chain inventories, rig counts, and energy prices will change, and as changes occur during the balance of 2018, we expect these changes to be reflected in our net earnings and EBiTDA,” the company said.

2017 Numbers

* Average realized price per net not of flat-rolled: $726 ($666 in 2016).

* Total USS and U.S. Steel Europe shipments: 15.16 million net tons (14.99 million).

* Flat-rolled steel capability at U.S. facilities: 64 percent (63 percent).

* Raw flat-rolled steel production at U.S. facilities: 10.82 million net tons (10.7 million).

* Flat-rolled capital expenditures: $388 million ($111 million).

* Intersegment shipments of flat-rolled to tubular: 158,000 net tons (42,000 net tons).

* Net sales: $12.25 billion ($10.26 billion).

* Flat-rolled segment earnings: $380 million (loss of $3 million in 2016).

* U.S. Steel Europe segment earnings: $327 million ($185).

* Tubular segment loss : $99 million (loss of $304 million).

* Other business segment earnings: $44 million ($63 million).

 

 

Posted 2/1/2018

 
 
 
 

 

 

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