PITTSBURGH, Nov. 1, 2016
/PRNewswire/ -- United States Steel Corporation (NYSE: X)
reported third quarter 2016 net earnings of $51 million, or $0.32 per diluted share, which included an
unfavorable adjustment of $14
million, or $0.08 per diluted
share, associated with the impairment of intangible assets.
This compared to a third quarter 2015 net loss of $173 million, or $1.18 loss per diluted share, and a second
quarter 2016 net loss of $46 million, or $0.32 loss per diluted share.
For a description of the non-generally accepted accounting
principles (non-GAAP) measures and a reconciliation from net
earnings (loss) attributable to U. S. Steel, see the non-GAAP
Financial Measures section.
|
Earnings
Highlights
|
|
|
(Dollars in
millions, except per share amounts)
|
3Q
2016
|
2Q
2016
|
3Q
2015
|
|
Net
Sales
|
$
|
2,686
|
|
$
|
2,584
|
|
$
|
2,830
|
|
|
Segment earnings
(loss) before interest and income taxes
|
|
|
|
|
Flat-Rolled
|
$
|
114
|
|
$
|
6
|
|
$
|
(18)
|
|
|
U. S. Steel
Europe
|
81
|
|
55
|
|
18
|
|
|
Tubular
|
(75)
|
|
(78)
|
|
(50)
|
|
|
Other Businesses
|
18
|
|
10
|
|
10
|
|
|
Total segment
earnings (loss) before interest and income taxes
|
$
|
138
|
|
$
|
(7)
|
|
$
|
(40)
|
|
|
Postretirement
benefit income (expense)
|
8
|
|
12
|
|
(11)
|
|
|
Other items not
allocated to segments
|
(14)
|
|
23
|
|
(119)
|
|
|
Earnings (loss)
before interest and income taxes
|
$
|
132
|
|
$
|
28
|
|
$
|
(170)
|
|
|
Net interest and
other financial costs
|
62
|
|
81
|
|
53
|
|
|
Income tax
provision (benefit)
|
19
|
|
(7)
|
|
(50)
|
|
|
Less: Net earnings
attributable to the noncontrolling interests
|
—
|
|
—
|
|
—
|
|
|
Net earnings
(loss) attributable to United States Steel
Corporation
|
$
|
51
|
|
$
|
(46)
|
|
$
|
(173)
|
|
|
-Earnings (loss)
per basic share
|
$
|
0.32
|
|
$
|
(0.32)
|
|
$
|
(1.18)
|
|
|
-Earnings (loss)
per diluted share
|
$
|
0.32
|
|
$
|
(0.32)
|
|
$
|
(1.18)
|
|
|
|
|
|
|
Adjusted earnings
(loss) before interest, income taxes, depreciation and amortization
(EBITDA) (a)
|
$
|
272
|
|
$
|
134
|
|
$
|
85
|
|
(a) Please refer to the non-GAAP Financial Measures
section of this document for the reconciliation of net earnings
(loss) attributable to United States Steel Corporation to adjusted
EBITDA.
Commenting on results, U. S. Steel President and Chief
Executive Officer Mario Longhi said,
"Our third quarter results improved significantly from the second
quarter as each of our segments improved, resulting in our highest
quarterly segment income since the fourth quarter of 2014. We faced
some operational challenges that limited our ability to realize the
full benefits of an improved pricing environment, but we continued
to make progress in our Carnegie Way transformation efforts. With
our very strong cash and liquidity position, we remain focused on
the investments that we need to continue to make to revitalize our
facilities and deliver value-enhancing solutions for our
customers."
Segment earnings before interest and income taxes were
$138 million, or $37 per ton, for the third quarter of 2016
compared with a segment loss before interest and income taxes of
$7 million, or $2 per ton, in the second quarter of 2016 and a
segment loss before interest and income taxes of $40 million, or $10
per ton, in the third quarter of 2015.
For the third quarter 2016, we recorded a tax provision of
$19 million on our pre-tax earnings
of $70 million. Due to the full
valuation allowance on our domestic deferred tax assets, the tax
provision does not reflect any tax impact on domestic results.
We generated positive operating cash flow of $577 million for the nine months ended
September 30, 2016. As of
September 30, 2016, U. S. Steel had
$1.4 billion of cash and $3.1 billion of total liquidity.
Segment Analysis
Third quarter results for our Flat-Rolled segment improved from
the second quarter as both spot and contract prices increased, and
benefits from an improving product mix and our Carnegie Way
initiatives continued to grow. Operational issues adversely
impacted shipments from our Flat-Rolled facilities. In the last
half of the third quarter, we experienced unplanned outages at
several of our steelmaking and finishing facilities. Our third
quarter shipments were negatively impacted by approximately 125,000
tons as a result of unplanned outages, as our streamlined plant
operating configuration extends the time it takes to recover
volumes from unplanned outages. A planned outage and lower
operating rates at our mining operations also negatively impacted
our results.
Third quarter results for our European segment increased
compared to the second quarter due to higher average realized
euro-based prices, partially offset by higher iron ore costs. The
ongoing benefits of our Carnegie Way efforts continue to drive
improved operating margins.
Third quarter results for our Tubular segment increased compared
to the second quarter, but continue to reflect the challenges of
operating at very low utilization rates in a low price
environment.
2016 Outlook
Commenting on U. S. Steel's outlook for 2016, Longhi said, "As
we move through the rest of 2016, operational issues remain a
headwind for us, as we continue to recover from unplanned outages
in the third quarter, while also completing our planned maintenance
outages. We have identified the critical assets that require
additional capital investment and increased maintenance spending in
order to improve our reliability and quality, and to lower our
costs. We plan to use our strong cash and liquidity position
to expedite the revitalization of our facilities and to fund
additional growth projects. This will enhance the ongoing
development of the differentiated solutions that make us a
strategic business partner for our customers. We continue to
make progress on our Carnegie Way transformation, and we have many
opportunities ahead of us."
If market conditions, which include spot prices, customer
demand, import volumes, supply chain inventories, rig counts and
energy prices, remain at their current levels, we expect:
- 2016 net loss of approximately $355
million, or a loss of $2.26
per share, and adjusted EBITDA of approximately $475 million;
- Results for our Flat-Rolled and European segments to be higher
than 2015 results and results for our Tubular segment to be lower
than 2015 results;
- To be cash positive for the year, including net proceeds from
our equity offering of $482 million
and approximately $500 million of
cash benefits from working capital improvement in 2016, primarily
related to better inventory management, driven by improved sales
and operations planning practices; and
- Improved results for Other Businesses and approximately
$52 million of postretirement benefit
income.
We believe market conditions will change, and as changes occur
during the balance of 2016, our net loss and adjusted EBITDA should
change consistent with the pace and magnitude of changes in market
conditions.
Please refer to the non-GAAP Financial Measures section of this
document for the reconciliation of the Outlook net earnings to
adjusted EBITDA.
*****
We present adjusted net earnings (loss), adjusted net earnings
(loss) per diluted share, earnings (loss) before interest, income
taxes, depreciation and amortization (EBITDA) and adjusted EBITDA,
which are non-GAAP measures, as additional measurements to enhance
the understanding of our operating performance.
We believe that EBITDA, considered along with the net earnings
(loss), is a relevant indicator of trends relating to cash
generating activity and provides management and investors with
additional information for comparison of our operating results to
the operating results of other companies.
Adjusted net earnings (loss) and adjusted net earnings (loss)
per diluted share are non-GAAP measures that exclude the effects of
restructuring charges, impairment charges, losses associated with
U. S. Steel Canada Inc. and losses on debt extinguishment that are
not part of the Company's core operations. Adjusted EBITDA is
also a non-GAAP measure that excludes the effects of restructuring
charges, impairment charges and losses associated with U. S. Steel
Canada Inc. We present adjusted net earnings (loss), adjusted
net earnings (loss) per diluted share and adjusted EBITDA to
enhance the understanding of our ongoing operating performance and
established trends affecting our core operations, particularly cash
generating activity, by excluding the effects of restructuring
charges, impairment charges and losses associated with non-core
operations that can obscure underlying trends. U. S. Steel's
management considers adjusted net earnings (loss), adjusted net
earnings (loss) per diluted share and adjusted EBITDA useful to
investors by facilitating a comparison of our operating performance
to the operating performance of our competitors, many of which use
adjusted net earnings (loss), adjusted net earnings (loss) per
diluted share and adjusted EBITDA as alternative measures of
operating performance. Additionally, the presentation of
adjusted net earnings (loss), adjusted net earnings (loss) per
diluted share and adjusted EBITDA provides insight into
management's view and assessment of the Company's ongoing operating
performance, because management does not consider the adjusting
items when evaluating the Company's financial performance or in
preparing the Company's annual financial outlook. Adjusted net
earnings (loss), adjusted net earnings (loss) per diluted share and
adjusted EBITDA should not be considered a substitute for net
earnings (loss), earnings (loss) per diluted share or other
financial measures as computed in accordance with U.S. GAAP and is
not necessarily comparable to similarly titled measures used by
other companies.
A consolidated statement of operations (unaudited), consolidated
cash flow statement (unaudited), condensed consolidated balance
sheet (unaudited) and preliminary supplemental statistics
(unaudited) for U. S. Steel are attached.
The Company will conduct a conference call on third quarter
earnings on Wednesday, November 2, at
8:30 a.m. Eastern Daylight. To
listen to the webcast of the conference call, visit the
U. S. Steel website, www.ussteel.com, and click on
"Current Information" under the "Investors" section.
For more information on U. S. Steel, visit our website
at www.ussteel.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS
This release contains information that may constitute
"forward-looking statements" within the meaning of Section 27 of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. We intend the
forward-looking statements to be covered by the safe harbor
provisions for forward-looking statements in those sections.
Generally, we have identified such forward-looking statements by
using the words "believe," "expect," "intend," "estimate,"
"anticipate," "project," "target," "forecast," "aim," "should,"
"will" and similar expressions or by using future dates in
connection with any discussion of, among other things, operating
performance, trends, events or developments that we expect or
anticipate will occur in the future, statements relating to volume
growth, share of sales and earnings per share growth, and
statements expressing general views about future operating results.
However, the absence of these words or similar expressions does not
mean that a statement is not forward-looking. Forward-looking
statements are not historical facts, but instead represent only the
Company's beliefs regarding future events, many of which, by their
nature, are inherently uncertain and outside of the Company's
control. It is possible that the Company's actual results and
financial condition may differ, possibly materially, from the
anticipated results and financial condition indicated in these
forward-looking statements. Management believes that these
forward-looking statements are reasonable as of the time made.
However, caution should be taken not to place undue reliance on any
such forward-looking statements because such statements speak only
as of the date when made. Our Company undertakes no obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise, except
as required by law. In addition, forward-looking statements are
subject to certain risks and uncertainties that could cause actual
results to differ materially from our Company's historical
experience and our present expectations or projections. These risks
and uncertainties include, but are not limited to the risks and
uncertainties described in "Item 1A. Risk Factors" in our Annual
Report on Form 10-K for the year ended December 31, 2015,
and those described from time to time in our future reports filed
with the Securities and Exchange Commission.
References to "we," "us," "our," the "Company," and "U. S.
Steel," refer to United States Steel Corporation and its
Consolidated Subsidiaries.
|
UNITED STATES
STEEL CORPORATION
|
|
STATEMENT OF
OPERATIONS (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Nine Months
Ended
|
|
|
|
Sept. 30
|
|
June 30
|
|
Sept. 30
|
|
September
30,
|
|
(Dollars in millions,
except per share amounts)
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
NET SALES
|
|
$
|
2,686
|
|
|
$
|
2,584
|
|
|
$
|
2,830
|
|
|
$
|
7,611
|
|
|
$
|
9,002
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES
(INCOME):
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
(excludes items shown below)
|
2,360
|
|
|
2,397
|
|
|
2,654
|
|
|
7,193
|
|
|
8,512
|
|
|
Selling, general and
administrative expenses
|
73
|
|
|
64
|
|
|
99
|
|
|
206
|
|
|
308
|
|
|
Depreciation,
depletion and amortization
|
126
|
|
|
129
|
|
|
136
|
|
|
384
|
|
|
418
|
|
|
Earnings from
investees
|
(18)
|
|
|
(28)
|
|
|
(6)
|
|
|
(91)
|
|
|
(29)
|
|
|
Impairment of
intangible assets
|
14
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|
—
|
|
|
Losses associated
with U. S. Steel Canada Inc.
|
—
|
|
|
—
|
|
|
16
|
|
|
—
|
|
|
271
|
|
|
Restructuring and
other charges
|
(3)
|
|
|
(6)
|
|
|
103
|
|
|
1
|
|
|
275
|
|
|
Net loss (gain) on
disposal of assets
|
3
|
|
|
—
|
|
|
(1)
|
|
|
6
|
|
|
(2)
|
|
|
Other income,
net
|
(1)
|
|
|
—
|
|
|
(1)
|
|
|
(1)
|
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses
|
2,554
|
|
|
2,556
|
|
|
3,000
|
|
|
7,712
|
|
|
9,751
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS (LOSS)
BEFORE INTEREST AND INCOME TAXES
|
132
|
|
|
28
|
|
|
(170)
|
|
|
(101)
|
|
|
(749)
|
|
|
Net interest and
other financial costs
|
62
|
|
|
81
|
|
|
53
|
|
|
208
|
|
|
170
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS (LOSS)
BEFORE INCOME TAXES
|
70
|
|
|
(53)
|
|
|
(223)
|
|
|
(309)
|
|
|
(919)
|
|
|
Income tax provision
(benefit)
|
19
|
|
|
(7)
|
|
|
(50)
|
|
|
26
|
|
|
(410)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
(loss)
|
51
|
|
|
(46)
|
|
|
(173)
|
|
|
(335)
|
|
|
(509)
|
|
|
Less: Net earnings
(loss) attributable to the
|
|
|
|
|
|
|
|
|
|
|
noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
NET EARNINGS (LOSS)
ATTRIBUTABLE TO
|
|
|
|
|
|
|
|
|
|
|
UNITED STATES STEEL
CORPORATION
|
$
|
51
|
|
|
$
|
(46)
|
|
|
$
|
(173)
|
|
|
$
|
(335)
|
|
|
$
|
(509)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMON STOCK
DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
per share attributable to
|
|
|
|
|
|
|
|
|
|
|
United
States Steel Corporation stockholders:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.32
|
|
|
$
|
(0.32)
|
|
|
$
|
(1.18)
|
|
|
$
|
(2.22)
|
|
|
$
|
(3.49)
|
|
|
Diluted
|
|
$
|
0.32
|
|
|
$
|
(0.32)
|
|
|
$
|
(1.18)
|
|
|
$
|
(2.22)
|
|
|
$
|
(3.49)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares, in thousands
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
160,513
|
|
|
146,582
|
|
|
146,324
|
|
|
151,199
|
|
|
146,008
|
|
|
Diluted
|
|
161,700
|
|
|
146,582
|
|
|
146,324
|
|
|
151,199
|
|
|
146,008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid per
common share
|
$
|
0.05
|
|
|
$
|
0.05
|
|
|
$
|
0.05
|
|
|
$
|
0.15
|
|
|
$
|
0.15
|
|
|
UNITED STATES
STEEL CORPORATION
|
|
CASH FLOW STATEMENT
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
|
September
30,
|
|
(Dollars in
millions)
|
|
2016
|
|
2015
|
|
Cash provided by
operating activities:
|
|
|
|
|
Net loss
|
|
$
|
(335)
|
|
|
$
|
(509)
|
|
|
Depreciation,
depletion and amortization
|
384
|
|
|
418
|
|
|
Impairment of
intangible assets
|
14
|
|
|
—
|
|
|
Losses associated
with U. S. Steel Canada Inc.
|
—
|
|
|
271
|
|
|
Restructuring and
other charges
|
1
|
|
|
275
|
|
|
Pensions and other
postretirement benefits
|
(38)
|
|
|
(33)
|
|
|
Deferred income
taxes
|
9
|
|
|
(385)
|
|
|
Net loss (gain) on
disposal of assets
|
6
|
|
|
(2)
|
|
|
Working capital
changes(a)
|
491
|
|
|
306
|
|
|
Income taxes
receivable/payable
|
14
|
|
|
7
|
|
|
Other operating
activities
|
31
|
|
|
(95)
|
|
|
|
Total
|
|
577
|
|
|
253
|
|
|
|
|
|
|
|
|
|
Cash used in
investing activities:
|
|
|
|
|
Capital
expenditures(a)
|
|
(268)
|
|
|
(354)
|
|
|
Acquisitions
|
|
—
|
|
|
(25)
|
|
|
Disposal of
assets
|
|
6
|
|
|
2
|
|
|
Other investing
activities
|
|
(20)
|
|
|
6
|
|
|
|
Total
|
|
(282)
|
|
|
(371)
|
|
|
|
|
|
|
|
|
|
Cash provided by
(used in) financing activities:
|
|
|
|
|
Issuance of long-term
debt, net of financing costs
|
958
|
|
|
—
|
|
|
Repayment of
long-term debt
|
|
(1,019)
|
|
|
(18)
|
|
|
Settlement of
contingent consideration
|
(15)
|
|
|
—
|
|
|
Common stock
issued
|
|
482
|
|
|
—
|
|
|
Receipts from
exercise of stock options
|
4
|
|
|
1
|
|
|
Dividends
paid
|
|
(22)
|
|
|
(22)
|
|
|
|
Total
|
|
388
|
|
|
(39)
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash
|
7
|
|
|
(32)
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
690
|
|
|
(189)
|
|
|
Cash and cash
equivalents at beginning of the year
|
755
|
|
|
1,354
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at end of the period
|
$
|
1,445
|
|
|
$
|
1,165
|
|
(a)2015 amounts have been revised to correct a prior
period error that resulted in decreased capital expenditures of
$55 million with the offsetting
change to accounts payable. Without the correction, 2015 capital
expenditures would have been $409
million.
|
UNITED STATES
STEEL CORPORATION
|
|
CONDENSED BALANCE
SHEET (Unaudited)
|
|
|
|
|
|
|
|
|
|
Sept. 30
|
|
Dec. 31
|
|
(Dollars in
millions)
|
|
2016
|
|
2015
|
|
Cash and cash
equivalents
|
$
|
1,445
|
|
|
$
|
755
|
|
|
Receivables,
net
|
1,196
|
|
|
1,063
|
|
|
Inventories
|
1,742
|
|
|
2,074
|
|
|
Other current
assets
|
28
|
|
|
25
|
|
|
Total current
assets
|
4,411
|
|
|
3,917
|
|
|
Property, plant and
equipment, net
|
4,218
|
|
|
4,411
|
|
|
Investments and
long-term receivables, net
|
538
|
|
|
540
|
|
|
Intangible assets,
net
|
177
|
|
|
196
|
|
|
Other
assets
|
123
|
|
|
103
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
9,467
|
|
|
$
|
9,167
|
|
|
|
|
|
|
|
|
Accounts
payable
|
$
|
1,655
|
|
|
$
|
1,493
|
|
|
Payroll and benefits
payable
|
464
|
|
|
462
|
|
|
Short-term debt and
current maturities of long-term debt
|
92
|
|
|
45
|
|
|
Other current
liabilities
|
186
|
|
|
148
|
|
|
Total current
liabilities
|
2,397
|
|
|
2,148
|
|
|
Long-term debt, less
unamortized discount and debt issuance costs
|
2,988
|
|
|
3,093
|
|
|
Employee
benefits
|
1,097
|
|
|
1,101
|
|
|
Other long-term
liabilities
|
383
|
|
|
388
|
|
|
United States Steel
Corporation stockholders' equity
|
2,601
|
|
|
2,436
|
|
|
Noncontrolling
interests
|
1
|
|
|
1
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
|
9,467
|
|
|
$
|
9,167
|
|
UNITED STATES
STEEL CORPORATION
NON-GAAP FINANCIAL MEASURES
(Unaudited)
We present adjusted net earnings (loss), adjusted net earnings
(loss) per diluted share, earnings (loss) before interest, income
taxes, depreciation and amortization (EBITDA) and adjusted EBITDA,
which are non-GAAP measures, as additional measurements to enhance
the understanding of our operating performance. We believe that
EBITDA, considered along with the net earnings (loss), is a
relevant indicator of trends relating to cash generating activity
and provides management and investors with additional information
for comparison of our operating results to the operating results of
other companies. Adjusted net earnings (loss) and adjusted
net earnings (loss) per diluted share are non-GAAP measures that
exclude the effects of restructuring charges, impairment charges,
losses associated with USSC and losses on debt extinguishment that
are not part of the Company's core operations. Adjusted EBITDA is
also a non-GAAP measure that excludes the effects of restructuring
charges, impairment charges and losses associated with U. S. Steel
Canada Inc. We present adjusted net earnings (loss), adjusted net
earnings (loss) per diluted share and adjusted EBITDA to enhance
the understanding of our ongoing operating performance and
established trends affecting our core operations, particularly cash
generating activity, by excluding the effects of restructuring
charges, impairment charges and losses associated with non-core
operations that can obscure underlying trends. U. S. Steel's
management considers adjusted net earnings (loss), adjusted net
earnings (loss) per diluted share and adjusted EBITDA useful to
investors by facilitating a comparison of our operating performance
to the operating performance of our competitors, many of which use
adjusted net earnings (loss), adjusted net earnings (loss) per
diluted share and adjusted EBITDA as alternative measures of
operating performance. Additionally, the presentation of
adjusted net earnings (loss), adjusted net earnings (loss) per
diluted share and adjusted EBITDA provides insight into
management's view and assessment of the Company's ongoing operating
performance, because management does not consider the adjusting
items when evaluating the Company's financial performance or in
preparing the Company's annual financial outlook. Adjusted net
earnings (loss), adjusted net earnings (loss) per diluted share and
adjusted EBITDA should not be considered a substitute for net
earnings (loss), earnings (loss) per diluted share or other
financial measures as computed in accordance with U.S. GAAP and is
not necessarily comparable to similarly titled measures used by
other companies.
|
RECONCILIATION OF
ADJUSTED EBITDA
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
Sept. 30
|
|
June 30
|
|
Sept. 30
|
|
(Dollars in
millions)
|
2016
|
|
2016
|
|
2015
|
|
Reconciliation to
Adjusted EBITDA
|
|
|
|
|
|
|
Net earnings (loss)
attributable to United States Steel Corporation
|
$
|
51
|
|
|
$
|
(46)
|
|
|
$
|
(173)
|
|
|
Income tax provision
(benefit)
|
19
|
|
|
(7)
|
|
|
(50)
|
|
|
Net interest and
other financial costs
|
62
|
|
|
81
|
|
|
53
|
|
|
Depreciation,
depletion and amortization expense
|
126
|
|
|
129
|
|
|
136
|
|
|
EBITDA
|
258
|
|
|
157
|
|
|
(34)
|
|
|
Supplemental
unemployment, severance costs and other charges
|
—
|
|
|
(23)
|
|
|
12
|
|
|
Impairment of
intangible assets
|
14
|
|
|
—
|
|
|
—
|
|
|
Loss on shutdown of
Fairfield Flat-Rolled Operations
|
—
|
|
|
—
|
|
|
91
|
|
|
Loss on write-down of
retained interest in USSC
|
—
|
|
|
—
|
|
|
16
|
|
|
Adjusted
EBITDA
|
$
|
272
|
|
|
$
|
134
|
|
|
$
|
85
|
|
UNITED STATES
STEEL CORPORATION
NON-GAAP FINANCIAL MEASURES
(Unaudited)
|
RECONCILIATION OF
ADJUSTED NET LOSS
|
|
|
|
|
|
|
|
|
|
Quarter
Ended(a)
|
|
|
Sept. 30
|
|
June 30
|
|
Sept. 30
|
|
(Dollars in millions,
except per share amounts)
|
2016
|
|
2016
|
|
2015
|
|
Reconciliation to
adjusted net earnings (loss) attributable to United States Steel
Corporation
|
|
|
|
|
|
|
Net earnings (loss)
attributable to United States Steel Corporation
|
$
|
51
|
|
|
$
|
(46)
|
|
|
$
|
(173)
|
|
|
Supplemental
unemployment, severance costs and other charges
|
—
|
|
|
(23)
|
|
|
7
|
|
|
Impairment of
intangible assets
|
14
|
|
|
—
|
|
|
—
|
|
|
Loss on shutdown of
Fairfield Flat-Rolled Operations
|
—
|
|
|
—
|
|
|
53
|
|
|
Losses associated
with U. S. Steel Canada Inc.
|
—
|
|
|
—
|
|
|
10
|
|
|
Loss on debt
extinguishment
|
—
|
|
|
24
|
|
|
—
|
|
|
Total adjustments
|
14
|
|
|
1
|
|
|
70
|
|
|
Adjusted net earnings
(loss) attributable to United States Steel Corporation
|
$
|
65
|
|
|
$
|
(45)
|
|
|
$
|
(103)
|
|
|
|
|
|
|
|
|
|
Reconciliation to
adjusted diluted net loss per share
|
|
|
|
|
|
|
Diluted net earnings
(loss) per share
|
$
|
0.32
|
|
|
$
|
(0.32)
|
|
|
$
|
(1.18)
|
|
|
Supplemental
unemployment, severance costs and other charges
|
—
|
|
|
(0.16)
|
|
|
0.05
|
|
|
Impairment of
intangible assets
|
0.08
|
|
|
—
|
|
|
—
|
|
|
Loss on shutdown of
Fairfield Flat-Rolled Operations
|
—
|
|
|
—
|
|
|
0.36
|
|
|
Losses associated
with U. S. Steel Canada Inc.
|
—
|
|
|
—
|
|
|
0.07
|
|
|
Loss on debt
extinguishment
|
—
|
|
|
0.17
|
|
|
—
|
|
|
Total adjustments
|
0.08
|
|
|
0.01
|
|
|
0.48
|
|
|
Adjusted diluted net
earnings (loss) per share
|
$
|
0.40
|
|
|
$
|
(0.31)
|
|
|
$
|
(0.70)
|
|
(a) The adjustments included in this table for the
quarter ended September 30, 2015 have
been tax effected at the quarterly effective tax rate while the
adjustments for the quarters ended September
30, 2016 and June 30, 2016
have been tax effected at a 0% tax rate due to the recognition of a
full valuation allowance.
|
UNITED STATES
STEEL CORPORATION
|
|
RECONCILIATION OF
ANNUAL ADJUSTED EBITDA OUTLOOK
|
|
|
|
|
|
Year Ended
|
|
|
Dec. 31
|
|
(Dollars in
millions)
|
2016
|
|
Reconciliation to
Projected Annual Adjusted EBITDA Included in Outlook
|
|
|
Projected net loss
attributable to United States Steel Corporation included in
Outlook
|
$
|
(355)
|
|
|
Estimated income tax
expense
|
40
|
|
|
Estimated net
interest and other financial costs
|
270
|
|
|
Estimated
depreciation, depletion and amortization
|
505
|
|
|
Restructuring,
impairment and other charges
|
15
|
|
|
Projected annual
adjusted EBITDA included in Outlook
|
$
|
475
|
|
|
UNITED STATES
STEEL CORPORATION
|
|
PRELIMINARY
SUPPLEMENTAL STATISTICS (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Nine Months
Ended
|
|
|
|
Sept. 30
|
|
June 30
|
|
Sept. 30
|
|
September
30,
|
|
|
(Dollars in
millions)
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
SEGMENT EARNINGS
(LOSS) BEFORE INTEREST AND INCOME TAXES
|
|
|
|
|
|
|
|
|
|
|
|
Flat-Rolled
|
$
|
114
|
|
|
$
|
6
|
|
|
$
|
(18)
|
|
|
$
|
(68)
|
|
|
$
|
(149)
|
|
|
|
U. S. Steel
Europe
|
81
|
|
|
55
|
|
|
18
|
|
|
122
|
|
|
75
|
|
|
|
Tubular
|
(75)
|
|
|
(78)
|
|
|
(50)
|
|
|
(217)
|
|
|
(115)
|
|
|
|
Other
Businesses
|
18
|
|
|
10
|
|
|
10
|
|
|
42
|
|
|
24
|
|
|
|
Total Segment
Earnings (Loss) Before Interest and Income Taxes
|
138
|
|
|
(7)
|
|
|
(40)
|
|
|
(121)
|
|
|
(165)
|
|
|
|
Postretirement
benefit income (expense)
|
8
|
|
|
12
|
|
|
(11)
|
|
|
36
|
|
|
(38)
|
|
|
|
Other items not
allocated to segments:
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
unemployment and severance costs
|
—
|
|
|
23
|
|
|
(12)
|
|
|
(2)
|
|
|
(31)
|
|
|
|
Impairment of
intangible assets
|
(14)
|
|
|
—
|
|
|
—
|
|
|
(14)
|
|
|
—
|
|
|
|
Losses associated
with U. S. Steel Canada Inc.
|
—
|
|
|
—
|
|
|
(16)
|
|
|
—
|
|
|
(271)
|
|
|
|
Loss on shutdown of
coke production facilities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(153)
|
|
|
|
Loss on shut-down of
Fairfield Flat-Rolled Operations
|
—
|
|
|
—
|
|
|
(91)
|
|
|
—
|
|
|
(91)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss)
before interest and income taxes
|
$
|
132
|
|
|
$
|
28
|
|
|
$
|
(170)
|
|
|
$
|
(101)
|
|
|
$
|
(749)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL
EXPENDITURES
|
|
|
|
|
|
|
|
|
|
|
|
Flat-Rolled(a)
|
$
|
23
|
|
|
$
|
28
|
|
|
$
|
63
|
|
|
$
|
97
|
|
|
$
|
196
|
|
|
|
U. S. Steel
Europe
|
17
|
|
|
22
|
|
|
33
|
|
|
68
|
|
|
78
|
|
|
|
Tubular
|
11
|
|
|
18
|
|
|
35
|
|
|
81
|
|
|
75
|
|
|
|
Other
Businesses
|
—
|
|
|
1
|
|
|
2
|
|
|
22
|
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total(a)
|
$
|
51
|
|
|
$
|
69
|
|
|
$
|
133
|
|
|
$
|
268(b)
|
|
|
$
|
354(b)
|
|
|
(a)The amount for the nine months ended September 30, 2015 has been revised to correct a
prior period error that resulted in decreased capital expenditures
of $55 million. Without the
correction, total capital expenditures for the Company for the nine
months ended September 30, 2015 would
have been $409 million.
(b) Excludes the (decrease) increase in accrued capital
expenditures of $(114) million and
$49 million for the nine months ended
September 30, 2016, and 2015,
respectively.
|
UNITED STATES
STEEL CORPORATION
|
|
PRELIMINARY
SUPPLEMENTAL STATISTICS (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Nine Months
Ended
|
|
|
|
|
Sept. 30
|
|
|
June 30
|
|
|
Sept. 30
|
|
|
September
30,
|
|
|
|
|
2016
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
2015
|
|
OPERATING
STATISTICS
|
|
|
|
|
|
|
|
|
|
|
Average realized
price: (a)
|
|
|
|
|
|
|
|
|
|
|
|
Flat-Rolled ($/net
ton)
|
718
|
|
|
642
|
|
|
674
|
|
|
658
|
|
|
712
|
|
|
|
U. S. Steel Europe
($/net ton)
|
503
|
|
|
485
|
|
|
516
|
|
|
483
|
|
|
527
|
|
|
|
U.
S. Steel Europe (euro/net ton)
|
451
|
|
|
430
|
|
|
464
|
|
|
433
|
|
|
473
|
|
|
|
Tubular ($/net
ton)
|
1,049
|
|
|
1,050
|
|
|
1,264
|
|
|
1,094
|
|
|
1,516
|
|
|
Steel Shipments
(thousands of net tons):(a)
|
|
|
|
|
|
|
|
|
|
|
|
Flat-Rolled
|
2,535
|
|
|
2,692
|
|
|
2,676
|
|
|
7,725
|
|
|
8,005
|
|
|
|
U. S. Steel
Europe
|
1,105
|
|
|
1,125
|
|
|
1,020
|
|
|
3,235
|
|
|
3,375
|
|
|
|
Tubular
|
103
|
|
|
70
|
|
|
154
|
|
|
262
|
|
|
465
|
|
|
|
|
Total Steel
Shipments
|
3,743
|
|
|
3,887
|
|
|
3,850
|
|
|
11,222
|
|
|
11,845
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intersegment
Shipments (thousands of net tons):
|
|
|
|
|
|
|
|
|
|
|
|
Flat-Rolled to
Tubular
|
2
|
|
|
—
|
|
|
137
|
|
|
44
|
|
|
381
|
|
|
Raw Steel Production
(thousands of net tons):
|
|
|
|
|
|
|
|
|
|
|
|
Flat-Rolled
|
2,734
|
|
|
2,735
|
|
|
3,240
|
|
|
8,248
|
|
|
8,916
|
|
|
|
U. S. Steel
Europe
|
1,279
|
|
|
1,258
|
|
|
1,133
|
|
|
3,689
|
|
|
3,615
|
|
|
Raw Steel Capability
Utilization: (b)
|
|
|
|
|
|
|
|
|
|
|
|
Flat-Rolled
|
64%
|
|
65%
|
|
66%
|
|
65%
|
|
61%
|
|
|
U. S. Steel
Europe
|
102%
|
|
101%
|
|
90%
|
|
98%
|
|
97%
|
(a) Excludes intersegment shipments.
(b) Based on annual raw steel production capability of
17.0 million net tons for Flat-Rolled and 5.0 million net tons for
U. S. Steel Europe. Prior to the permanent shutdown of the
blast furnace and associated steelmaking operations, along with
most of the flat-rolled finishing operations at Fairfield Works
late in the third quarter of 2015, annual raw steel production
capability for Flat-Rolled was 19.4 million net tons.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/united-states-steel-corporation-reports-best-quarterly-results-since-2014-300355287.html
SOURCE United States Steel Corporation