U.S. Steel Corporation (USS) is reporting net earnings in the first quarter
of 2018 of $18 million or 10 cents per diluted share, compared to net
earnings in the fourth quarter of 2017 of $159 million or 90 cents; and to a
net loss of $180 million or $1.03 in the year-ago period.
“Our performance was significantly better than the first quarter of 2017,
with improved results for all three of our reportable segments enabling four
consecutive quarters of more predictable EBITDA,” USS President and CEO
David Burritt said. “In spite of operational issues related to weather and
ongoing challenges with assets not yet revitalized, the first quarter of
2018 was in line with our expectations.”
“During the first quarter, we also continued to improve our risk profile and
strengthen our balance sheet through the successful completion of a
$650-million senior unsecured notes offering, and the subsequent repayment
of $780 million of our unsecured notes, with the repayment of the final $281
million being completed on April 12.”
“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 European and
tubular businesses,” USS noted. “Our net debt was approximately $1.5 billion
as of March 31, 2018, a decrease of over $225 million from the same period
last year. We maintain strong cash and liquidity.”
“We are beginning the second year of our asset revitalization program, and
we are already seeing benefits from the investment of our assets,” Burritt
said. “It is prudent for us to anticipate the possibility of continued
operational volatility for those assets to be revitalized. We remain focused
on managing operational volatility to ensure we take care of our customers,
and the restart of steelmaking at Granite City will increase our ability to
“While there is uncertainty about how country exemption and product
exclusion requests related to Section 232 will be resolved, we continue to
invest in revitalizing our assets and developing innovative customer
solutions,” Burritt added. We are confident we will deliver our 2020
“Currently we are experiencing operational challenges at our steelmaking
facility at Great Lakes Works that we expect to have an unfavorable EBITDA
impact of approximately $30 million on our second quarter results,” USS
said. We currently believe that second quarter 2018 adjusted EBITDA will be
approximately $400 million and full-year 2018 adjusted EBITDA will be
approximately $1.7-1.8 billion.”
* Flat-rolled segment earnings: $33 million (loss of $88 million in the
* U.S. Steel Europe (USSE) segment earnings: $110 million ($87 million).
* Tubular segment loss: $27 million (loss of $57 million).
* Other businesses segment earnings: $11 million ($13 million).
* Average realized price per net ton of flat-rolled: $740 ($719).
* Total USS and USSE shipments: 3.84 million net tons (3.65 million).
* Flat-rolled steel capability at U.S. facilities: 66 percent (65 percent).
* Raw flat-rolled steel production at U.S. facilities: 2.78 million net tons
* Flat-rolled capital expenditures: $176 million ($25 million).
* Intersegment shipments of flat-rolled to tubular: 67,000 net tons (none).
* Net sales: $3.149 billion ($2.725 billion).