Chesterton Tribune



USS posts 2Q loss of $589M

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U.S. Steel 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.

"Protecting lives 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."

2Q Numbers

-- 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).

-- Flat-rolled 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).

-- Flat-rolled capital expenditures: $118 million ($254 million year-ago).

-- Intersegment shipments of flat-rolled to tubular: 9 million net tons (52 million year-ago).

-- Net sales: $2.09 billion ($3.54 billion year-ago).

-- Flat-rolled segment loss before interest and taxes: $329 million ($134 million segment earnings year-ago).

-- 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).


Posted 7/31/2020






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