Corporation (USS) is reporting a net income in the second quarter of 2017 of
$261 million or $1.48 per diluted share, compared to a net loss in the first
quarter of $180 million or $1.03 and a net loss in the year-ago period of
$46 million or 32 cents.
results included a one-time gain of $72 million or 41 cents per diluted
share in connection with the sale of U.S. Steel Canada.
performed better in the second quarter, particular in our flat-rolled
segment,” USS President and CEO Dave Burritt said in a statement released
today. “Better operations combined with higher prices and volumes in all of
our segments and improved results from our mining operations, resulted in a
$300-million improvement in our segment results compared with the first
operations continue to deliver solid earnings and our tubular operations
continue to make progress towards returning profitability,” Burritt added.
“We are focused on our strategic priorities: driving operational excellence
across our business--from our plants to our support teams; investing in our
facilities through our asset revitalization program; and providing our
employees with the resources they need to implement positive, substantive
changes. Successful execution of this strategy will result in continuous
improvements in safety, quality, delivery, and costs and create meaningful
value and returns for all of our stakeholders, including employees,
customers, and stockholders.”
“We are seeing a
more bullish sentiment in the markets served by our flat-rolled and European
segments right now, as prices have been increasing and overall demand has
been stable,” Burritt said. “Our tubular segment continues to benefit from
operational and cost improvements we have made, as well as from stronger
market conditions. Our investment in facilities and our people continues to
increase. These strategic investments, combined with our focus on achieving
operational excellence, will deliver continuous improvements in safety,
quality, delivery, and costs that will position us to succeed through
business cycles, and support future growth initiatives.”
conditions remain at their current levels, USS is projecting net earnings in
2017 of $300 million or $1.70 per share; and EBITDA (adjusted earnings
before interest, income taxes, depreciation, and amortization) of $1.1
billion, including flat-rolled EBITDA of $750 million.
USS is also
projecting the Other Businesses segment to be comparable to 2016 and
post-retirement expenses of $60 million.
“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 2017 we expect these
changes to be reflected in our net earnings and adjusted EBITDA.”
2Q Segment Earnings
Before Interest, Income Taxes
* Flat-rolled: $218
million (loss of $90 million in 1Q, earnings of $6 million in the year-ago).
USS attributed the improvement to “higher results from our mining operations
and a second consecutive quarter of increasing average realized prices and
* U.S. Steel Europe
(USSE): $55 million ($87 million in 1Q, $55 million in the year-ago).
* Tubular: loss of
$29 million (loss of $57 million in 1Q, loss of $78 million in the
* Other businesses:
$9 million ($13 million in 1Q, $10 million in the year-ago).
More 2Q Numbers
* Average realized
price per net ton of flat-rolled: $742 ($719 in 1Q, $642 in the year-ago).
* Total USS and
USSE shipments: 3.83 million net tons (3.65 million in 1Q, 3.88 million in
* Flat-rolled steel
capability at U.S. facilities: 64 percent (65 percent in 1Q, 65 percent in
* Raw flat-rolled
steel production at U.S. facilities: 2.71 million net tons (2.71 million in
1Q, 2.73 million in the year-ago).
capital expenditures: $47 million ($25 million in 1Q, $28 million in the
* Net sales: $3.14
billion ($2.72 billion in 1Q, $2.58 billion in the year-ago).