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United States Steel Corporation Reports Record Second Quarter 2022 Results

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Announcing a new $500 million stock buyback authorization

  • Second quarter net earnings of $978 million. Reported net earnings per diluted share of $3.42

  • Record second quarter adjusted net earnings of $1,104 million. Adjusted net earnings per diluted share of $3.86

  • Record second quarter adjusted EBITDA of $1,620 million

PITTSBURGH, July 28, 2022--(BUSINESS WIRE)--United States Steel Corporation (NYSE: X) reported second quarter 2022 net earnings of $978 million, or $3.42 per diluted share. Adjusted net earnings was $1,104 million, or $3.86 per diluted share. This compares to second quarter 2021 net earnings of $1,012 million, or $3.53 per diluted share. Adjusted net earnings for the second quarter 2021 was $1,050 million, or $3.67 per diluted share.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220728005812/en/

United States Steel Corporation Reports Record Second Quarter 2022 Results (Graphic: Business Wire)

Earnings Highlights

 

Three Months Ended June 30,

Six Months Ended June 30,

(Dollars in millions, except per share amounts)

2022

2021

2022

2021

Net Sales

$

6,290

 

$

5,025

 

$

11,524

 

$

8,689

 

Segment earnings (loss) before interest and income taxes

 

 

 

 

Flat-Rolled

 

777

 

 

579

 

 

1,290

 

 

725

 

Mini Mill (a)

 

270

 

 

284

 

 

548

 

 

416

 

U. S. Steel Europe

 

280

 

 

207

 

 

544

 

 

312

 

Tubular

 

107

 

 

 

 

184

 

 

(29

)

Other

 

(12

)

 

14

 

 

(5

)

 

22

 

Total segment earnings before interest and income taxes

$

1,422

 

$

1,084

 

$

2,561

 

$

1,446

 

Other items not allocated to segments

 

(168

)

 

(50

)

 

(189

)

 

13

 

Earnings before interest and income taxes

$

1,254

 

$

1,034

 

$

2,372

 

$

1,459

 

Net interest and other financial costs

 

(8

)

 

59

 

 

(18

)

 

392

 

Income tax expense

 

284

 

 

(37

)

 

530

 

 

(36

)

Net earnings

$

978

 

$

1,012

 

$

1,860

 

$

1,103

 

Earnings per diluted share

$

3.42

 

$

3.53

 

$

6.45

 

$

4.02

 

 

 

 

 

 

Adjusted net earnings (b)

$

1,104

 

$

1,050

 

$

2,002

 

$

1,332

 

Adjusted net earnings per diluted share (b)

$

3.86

 

$

3.67

 

$

6.95

 

$

4.85

 

Adjusted earnings before interest, income taxes, depreciation and amortization (EBITDA) (b)

$

1,620

 

$

1,286

 

$

2,957

 

$

1,837

 

(a) Mini Mill segment added after January 15, 2021 with the purchase of the remaining equity interest in Big River Steel.

(b) Please refer to the non-GAAP Financial Measures section of this document for the reconciliation of these amounts.

"Our record-best second quarter was driven by strong performance across our diverse operating segments," commented U. S. Steel President and Chief Executive Officer David B. Burritt. "As we continue to demonstrate the execution of our strategy, it is timely to reflect upon just how much progress we’ve made over the past twelve months, exhibiting continued record safety performance, generating nearly $6.7 billion of adjusted EBITDA and over $4 billion of free cash flow, building over $3 billion of cash, and returning nearly $850 million to stockholders, including July's buyback activity."

Burritt continued, "The bold decisions we have made to invest in our competitive advantages make us a stronger business that creates enduring value for our stockholders through the cycle. The well-timed acquisition of Big River Steel created a best-in-class sustainable Mini Mill segment representing nearly 30% of U. S. Steel’s domestic flat-rolled steel EBITDA over the past twelve months. We invested in state-of-the-art electric arc furnace steelmaking through challenging energy dynamics and our Tubular segment is now profitably serving the resurging oil and gas markets. Our revitalized integrated operations are benefiting from our diverse end-market exposure and value-focused commercial strategy that leverages our deep customer relationships and lowest-cost iron ore capabilities to produce profitable steel solutions. In Europe, our Slovakian operations are navigating challenging conditions and continuing to implement resiliency plans and cost mitigation actions in the event of continued economic slowdown in the region."

Commenting on the Company’s outlook, Burritt concluded, "We are bullish on U. S. Steel’s future and confident in our ability to execute our Best for All® strategy. While some consumer-oriented markets like automotive and appliance are softer, line pipe and energy demand is accelerating. We have demonstrated a commitment to achieving and maintaining a strong balance sheet, a supportive debt maturity profile, and a balanced approach to capital allocation. We’ve completed our $800 million stock buyback authorization and are pleased to announce a new $500 million stock buyback authorization today. We are a ‘show me’ story, which gives us the opportunity to continue to consider our stock as an attractive investment. Through passion and perseverance, we look forward to demonstrating the power of our strategy and the improvement in the value of our company."

Capital Allocation Update:

During the second quarter 2022, the Company repurchased $400 million of its common stock. Third quarter 2022 to date, the Company has repurchased $127 million, exhausting the remaining portion of the $500 million share repurchase program announced in January 2022. The Board of Directors has authorized a new $500 million share repurchase program to commence in the third quarter 2022 under which the Company’s outstanding common stock may be repurchased from time to time at the discretion of management.

*****

The Company will conduct a conference call on the second quarter 2022 earnings on Friday, July 29, 2022, at 8:30 a.m. Eastern. To listen to the webcast of the conference call and to access the Company's slide presentation, visit the U. S. Steel website, www.ussteel.com, and click on the "Investors" section. Replay will be available on the website after 10:30 a.m. on July 29, 2022.

UNITED STATES STEEL CORPORATION

PRELIMINARY SUPPLEMENTAL STATISTICS (Unaudited)

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2022

2021

 

2022

2021

OPERATING STATISTICS

 

 

 

 

 

Average realized price: ($/net ton unless otherwise noted) (a)

 

 

 

 

 

Flat-Rolled

 

1,339

 

 

1,078

 

 

 

1,352

 

 

983

 

Mini Mill (b)

 

1,331

 

 

1,207

 

 

 

1,349

 

 

1,106

 

U. S. Steel Europe

 

1,217

 

 

905

 

 

 

1,162

 

 

831

 

U. S. Steel Europe (€/net ton)

 

1,142

 

 

750

 

 

 

1,064

 

 

689

 

Tubular

 

2,727

 

 

1,633

 

 

 

2,543

 

 

1,513

 

 

 

 

 

 

 

Steel shipments (thousands of net tons): (a)

 

 

 

 

 

Flat-Rolled

 

2,365

 

 

2,326

 

 

 

4,312

 

 

4,658

 

Mini Mill (b)

 

615

 

 

616

 

 

 

1,122

 

 

1,063

 

U. S. Steel Europe

 

1,067

 

 

1,167

 

 

 

2,177

 

 

2,210

 

Tubular

 

136

 

 

105

 

 

 

264

 

 

194

 

Total Steel Shipments

 

4,183

 

 

4,214

 

 

 

7,875

 

 

8,125

 

 

 

 

 

 

 

Intersegment steel (unless otherwise noted) shipments (thousands of net tons):

 

 

 

 

 

Flat-Rolled to USSE (iron ore pellets and fines)

 

82

 

 

223

 

 

 

82

 

 

439

 

Flat-Rolled to Mini Mill

 

23

 

 

 

 

 

23

 

 

 

Mini Mill (b) to Flat-Rolled

 

110

 

 

125

 

 

 

199

 

 

186

 

 

 

 

 

 

 

Raw steel production (thousands of net tons):

 

 

 

 

 

Flat-Rolled

 

2,424

 

 

2,485

 

 

 

4,629

 

 

5,066

 

Mini Mill (b)

 

750

 

 

747

 

 

 

1,351

 

 

1,257

 

U. S. Steel Europe

 

1,216

 

 

1,279

 

 

 

2,304

 

 

2,476

 

Tubular

 

168

 

 

114

 

 

 

324

 

 

207

 

 

 

 

 

 

 

Raw steel capability utilization: (c)

 

 

 

 

 

Flat-Rolled

 

74

%

 

59

%

 

 

71

%

 

60

%

Mini Mill (b)

 

91

%

 

91

%

 

 

83

%

 

84

%

U. S. Steel Europe

 

98

%

 

103

%

 

 

93

%

 

100

%

Tubular

 

75

%

 

51

%

 

 

73

%

 

46

%

 

 

 

 

 

 

CAPITAL EXPENDITURES (dollars in millions)

 

 

 

 

 

Flat-Rolled

 

112

 

 

93

 

 

 

229

 

 

167

 

Mini Mill (b)

 

179

 

 

20

 

 

 

390

 

 

56

 

U. S. Steel Europe

 

17

 

 

12

 

 

 

34

 

 

26

 

Tubular

 

3

 

 

22

 

 

 

7

 

 

34

 

Other Businesses

 

 

 

1

 

 

 

 

 

1

 

Total

$

311

 

$

148

 

 

$

660

 

$

284

 

(a) Excludes intersegment shipments.

(b) Mini Mill segment added after January 15, 2021 with the purchase of the remaining equity interest in Big River Steel.

(c) 2022 based on annual raw steel production capability of 13.2 million net tons for Flat-Rolled, 3.3 million for Mini Mill, 5.0 million net tons for U. S. Steel Europe and 0.9 million for Tubular. 2021 based on annual raw steel production capability of 17.0 million net tons for Flat-Rolled, 3.3 million for Mini Mill, 5.0 million net tons for U. S. Steel Europe and 0.9 million for Tubular.

UNITED STATES STEEL CORPORATION

CONDENSED STATEMENT OF OPERATIONS (Unaudited)

 

Three Months Ended June 30,

 

Six Months Ended June 30,

(Dollars in millions, except per share amounts)

2022

2021

 

2022

2021

Net Sales

$

6,290

 

$

5,025

 

 

$

11,524

 

$

8,689

 

 

 

 

 

 

 

Operating expenses (income):

 

 

 

 

 

Cost of sales

 

4,661

 

 

3,678

 

 

 

8,484

 

 

6,752

 

Selling, general and administrative expenses

 

112

 

 

106

 

 

 

229

 

 

208

 

Depreciation, depletion and amortization

 

198

 

 

202

 

 

 

396

 

 

391

 

Earnings from investees

 

(95

)

 

(35

)

 

 

(131

)

 

(49

)

Asset impairment charges

 

151

 

 

28

 

 

 

157

 

 

28

 

Gain on equity investee transactions

 

 

 

 

 

 

 

 

(111

)

Restructuring and other charges

 

17

 

 

31

 

 

 

34

 

 

37

 

Net gains on sale of assets

 

(2

)

 

(15

)

 

 

(4

)

 

(15

)

Other gains, net

 

(6

)

 

(4

)

 

 

(13

)

 

(11

)

Total operating expenses

 

5,036

 

 

3,991

 

 

 

9,152

 

 

7,230

 

 

 

 

 

 

 

Earnings before interest and income taxes

 

1,254

 

 

1,034

 

 

 

2,372

 

 

1,459

 

Net interest and other financial (benefits) costs

 

(8

)

 

59

 

 

 

(18

)

 

392

 

 

 

 

 

 

 

Earnings before income taxes

 

1,262

 

 

975

 

 

 

2,390

 

 

1,067

 

Income tax expense (benefit)

 

284

 

 

(37

)

 

 

530

 

 

(36

)

 

 

 

 

 

 

Net earnings

 

978

 

 

1,012

 

 

 

1,860

 

 

1,103

 

Less: Net earnings attributable to noncontrolling interests

 

 

 

 

 

 

 

 

 

Net earnings attributable to United States Steel Corporation

$

978

 

$

1,012

 

 

$

1,860

 

$

1,103

 

 

 

 

 

 

 

COMMON STOCK DATA:

 

 

 

 

 

Net earnings per share attributable to United States Steel Corporation Stockholders

 

 

 

 

 

Basic

$

3.80

 

$

3.75

 

 

$

7.17

 

$

4.25

 

Diluted

$

3.42

 

$

3.53

 

 

$

6.45

 

$

4.02

 

Weighted average shares, in thousands

 

 

 

 

 

Basic

 

257,267

 

 

269,872

 

 

 

259,348

 

 

259,668

 

Diluted

 

286,680

 

 

286,337

 

 

 

289,246

 

 

274,512

 

Dividends paid per common share

$

0.05

 

$

0.01

 

 

$

0.10

 

$

0.02

 

UNITED STATES STEEL CORPORATION

CONDENSED CASH FLOW STATEMENT (Unaudited)

 

Six Months Ended June 30,

(Dollars in millions)

2022

 

2021

Increase (decrease) in cash, cash equivalents and restricted cash

Operating activities:

 

 

 

Net earnings

$

1,860

 

 

$

1,103

 

Depreciation, depletion and amortization

 

396

 

 

 

391

 

Asset impairment charges

 

157

 

 

 

28

 

Gain on equity investee transactions

 

 

 

 

(111

)

Restructuring and other charges

 

34

 

 

 

37

 

Loss on debt extinguishment

 

2

 

 

 

256

 

Pensions and other postretirement benefits

 

(106

)

 

 

(46

)

Deferred income taxes

 

247

 

 

 

(77

)

Working capital changes