Chesterton Tribune



USS posts 3Q net loss of $84 million

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U.S. Steel Corporation (USS) is reporting a net loss in the third quarter of $84 million or 49 cents per diluted share, compared to a net income in the second quarter of $68 million or 39 cents; and a net income in the year-ago period of $291 million or $1.62.

The 3Q net loss is at the low end of the company’s preliminary unaudited quarterly projection released early in November: $84 to $94 million or 49 to 55 cents per diluted share.

“The team delivered better than expected results from solid cost performance and higher than forecasted shipments in flat-rolled,” USS President and CEO David Burritt said in a statement released today. “While market headwinds persist, we continue to focus on what we can control, including re-scoping our asset revitalization investments and reducing fixed costs. We also completed three financing activities since the quarter ended, which delivered approximately $1.1 billion of incremental capital to further support our strategy.”

“We are using today’s market environment as a catalyst to improve our business model with our ‘best of both’ strategy,” Burritt added. “Our investment in Big River Steel is strategic priority No. 1 and we are already purposefully re-prioritizing our uses of cash towards investments most closely aligned with the business we are becoming. We will be flexible managing the pace of our strategic investments to ensure we demonstrate the resiliency required to achieve the cost and capability differentiation of our world competitive strategy.”

3Q Numbers

--Average realized price per net ton of flat-rolled: $732 ($779 2Q; $859 year-ago).

--Total USS and U.S. Steel Europe shipments: 3.59 million net tons (4 million 2Q; 3.94 million year-ago).

--Flat-rolled steel capability at U.S. facilities: 65 percent (70 percent 2Q; 68 percent year-ago).

--Raw flat-rolled steel production: 2.78 million net tons (2.98 million 2Q; 2.93 million year-ago).

--Flat-rolled capital expenditures: $263 million ($254 million 2Q; $213 year-ago).

--Intersegment shipments of flat-rolled to tubular: 79,000 net tons (52,000 net tons 2Q; 26,000 net tons year-ago).

--Net sales: $3.06 billion ($3.54 billion 2Q; $3.72 billion year-ago).

--Flat-rolled segment earnings: $46 million ($134 million 2Q; $305 million year-ago).

--U.S. Europe segment loss: $46 million ($10 million loss 2Q; $115 million earnings year-ago).

--Tubular segment loss: $25 million ($6 million loss 2Q; $7 million earnings year-ago).

--Other business segment earnings: $8 million ($10 million 2Q; $16 million year-ago).

--Total segment loss before interest and income taxes: $17 million ($128 million total segment earnings 2Q; $400 million total segment earnings year-ago).


Posted 11/1/2019




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