Corporation (USS) is reporting a net loss of $589 million or $3.36 per
diluted share for the second quarter of 2020, compared to a net loss of $390
million or $2.30 in the first quarter and a net income of $68 million or 39
cents in the year-ago period.
and livelihoods remains our top priority," USS President and CEO David
Burritt said in a statement released after deadline on Thursday. "We remain
vigilant and continue to actively enforce our COVID-19 protocols, including
working from home, where applicable, promoting social distancing, limiting
visitors to our sites, and continuing our enhanced cleaning activities. As a
result of this intense focus, COVID-19 cases among our workforce remain
significantly better than the general U.S. population."
"We are encouraged
by the recovery in market conditions as automotive original equipment
manufacturers have nearly normalized production levels and healthy order
activity has continued in the third quarter," Burritt said. "Construction
demand is exceeding our expectations and is expected to remain robust,
particularly for value-add construction projects. To ensure we continue to
serve our customers, we re-started two blast furnaces to quickly respond to
increasing activity and plan to re-start an additional blast furnace at Gary
Works on Aug. 1. In Europe, demand is beginning to recover, in line with the
re-opening of the European continent."
"We exceeded our
second-quarter guidance as North American flat-rolled segment shipments
meaningfully accelerated in the second half of June, resulting in better
than expected production efficiencies and cost benefits across our mines and
steel plants," Burritt added. "Still, second-quarter performance was
impacted by COVID-19 and the non-recurring costs associated with a
significant portion of our steelmaking operations being idled in the
quarter. We are encouraged by the accelerating pace of incoming orders
across our steelmaking and sheet finishing facilities. While a portion of
operating inefficiencies will continue to impact third-quarter performance,
we are confident that the second quarter was the trough of the year."
-- Average realized
price per net ton of flat-rolled: $721 ($779 year-ago).
-- Total USS and
U.S. Steel Europe shipments: 2.53 million net tons (4.0 million year-ago).
capability at U.S. facilities: 35 percent (70 percent year-ago).
-- Raw flat-steel
production: 1.46 million net tons (2.98 million year-ago).
capital expenditures: $118 million ($254 million year-ago).
shipments of flat-rolled to tubular: 9 million net tons (52 million
-- Net sales: $2.09
billion ($3.54 billion year-ago).
segment loss before interest and taxes: $329 million ($134 million segment
-- U.S. Steel
Europe segment loss: $26 million ($10 million segment loss year-ago).
-- Tubular segment
loss: $47 million ($6 million segment loss year-ago).
Total segment loss:
$423 million ($128 segment earnings year-ago).