United States Steel Corporation (NYSE:X) reported third quarter
2017 net earnings of $147 million, or $0.83 per diluted
share. Adjusted net earnings were $161 million, or $0.92 per
diluted share, which excluded a gain of $21 million, or $0.11 per
diluted share, related to equity affiliate transactions, primarily
due to the sale of our ownership interest in Tilden Mining Company
L.C., and a debt extinguishment loss and other related costs of $35
million, or $0.20 per diluted share. Third quarter 2016 net
earnings were $51 million, or $0.32 per diluted share.
Commenting on U. S. Steel’s results, President and Chief
Executive Officer Dave Burritt said, “Our third quarter results
were modestly better than we expected, with stable operating
performance at each of our segments and our Tubular segment
producing positive EBITDA in the quarter. Our results for the
first nine months of 2017 improved over the first nine months of
2016, with all three of our segments improving compared with
2016.”
| |
| Earnings Highlights |
| |
|
|
|
| |
Quarter Ended |
|
Nine Months Ended |
| |
September 30, |
|
September 30, |
| (Dollars
in millions, except per share amounts) |
2017 |
2016 |
|
2017 |
2016 |
|
Net Sales |
$ |
3,248 |
|
$ |
2,686 |
|
|
$ |
9,117 |
|
$ |
7,611 |
|
|
Segment earnings (loss) before interest and income
taxes |
|
|
|
|
|
|
Flat-Rolled |
$ |
160 |
|
$ |
114 |
|
|
$ |
288 |
|
$ |
(68 |
) |
|
U. S. Steel Europe |
73 |
|
81 |
|
|
215 |
|
122 |
|
|
Tubular |
(7 |
) |
(75 |
) |
|
(93 |
) |
(217 |
) |
|
Other Businesses |
12 |
|
18 |
|
|
34 |
|
42 |
|
|
Total segment earnings (loss) before interest and income
taxes (a) |
$ |
238 |
|
$ |
138 |
|
|
$ |
444 |
|
$ |
(121 |
) |
|
Postretirement benefit (expense) income |
(14 |
) |
8 |
|
|
(42 |
) |
36 |
|
|
Other items not allocated to segments |
21 |
|
(14 |
) |
|
58 |
|
(16 |
) |
|
Earnings (loss) before interest and income
taxes |
$ |
245 |
|
$ |
132 |
|
|
$ |
460 |
|
$ |
(101 |
) |
|
Net interest and other financial costs |
98 |
|
62 |
|
|
229 |
|
208 |
|
|
Income tax provision |
— |
|
19 |
|
|
3 |
|
26 |
|
|
Less: Net earnings attributable to the noncontrolling
interests |
— |
|
— |
|
|
— |
|
— |
|
|
Net earnings (loss) attributable to United States Steel
Corporation |
$ |
147 |
|
$ |
51 |
|
|
$ |
228 |
|
$ |
(335 |
) |
|
-Earnings (loss) per basic share |
$ |
0.84 |
|
$ |
0.32 |
|
|
$ |
1.30 |
|
$ |
(2.22 |
) |
|
-Earnings (loss) per diluted share |
$ |
0.83 |
|
$ |
0.32 |
|
|
$ |
1.29 |
|
$ |
(2.22 |
) |
|
|
|
|
|
|
|
|
Adjusted earnings before interest, income taxes,
depreciation and amortization (EBITDA) (b) |
$ |
342 |
|
$ |
272 |
|
|
$ |
778 |
|
$ |
299 |
|
|
(a) Third quarter and nine months 2017 results include
favorable impacts of $95 million and $205 million, respectively,
related to our previously disclosed change in accounting method for
property, plant, and equipment. |
|
(b) Please refer to the non-GAAP Financial Measures section of this
document for the reconciliation of net earnings attributable to
United States Steel Corporation to adjusted EBITDA. |
|
|
Our balance sheet continues to improve, with net debt decreasing
by $200 million in the third quarter, to $1.2 billion. Our
total liquidity also increased during the quarter, which leaves us
well positioned to continue the implementation of our asset
revitalization program.
In addition to the increased focus on our operations, we also
are continuing to develop the next generation of steel products for
our customers. Our Generation 3 steels will provide superior
formability and high-strength properties while using a low-alloyed
approach for robust weldability. To expand our capabilities
in Generation 3 steels, we announced last month that a new
continuous galvanizing line will be constructed at our PRO-TEC
Coating Company joint venture, which will allow PRO-TEC to produce
these Generation 3 steels with a hot-dipped zinc coating.
This line will be the first of its kind and utilizes proprietary
technology capable of producing the high-quality, cutting-edge
advanced high-strength steels that will meet our automotive
customers’ needs and solve some of their most pressing
challenges. Our Generation 3 steels continue to reinforce why
steel will remain the lowest cost, strongest, safest, and most
environmentally efficient material of choice.
2017 Outlook
Commenting on U. S. Steel’s outlook for 2017, President and
Chief Executive Officer Dave Burritt said, "We remain focused
on our operations, revitalizing our assets, and developing our
talent. We are seeing operating improvements in the
assets in which we are investing. This increases our
confidence that we will achieve the 2020 improvement targets we
have disclosed. We believe the attention to our assets and
employees, with continued focus on improving safety, quality,
delivery, and cost, will result in improved operating reliability
and enable us to remain a strong business partner for our
customers."
If market conditions remain at their current levels, we expect
2017 net earnings of approximately $323 million, or $1.83 per
share, 2017 adjusted net earnings of approximately $300 million, or
$1.70 per share, and consolidated adjusted EBITDA of approximately
$1.075 billion.
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.
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 net earnings (loss), is a
relevant indicator of trends relating to our operating performance
and provides management and investors with additional information
for comparison of our operating results to the operating results of
other companies. Net debt is a non-GAAP measure calculated as
total debt less cash and cash equivalents. We believe net debt is a
useful measure in calculating enterprise value. Both EBITDA and net
debt are used by analysts to refine and improve the accuracy of
their financial models which utilize enterprise value.
Adjusted net earnings (loss) and adjusted net earnings (loss)
per diluted share are non-GAAP measures that exclude the effects of
gains associated with our retained interest in U. S. Steel Canada
Inc., gains (losses) on the sale of ownership interests in equity
investees, restructuring charges, impairment charges and debt
extinguishment and other related costs that are not part of the
Company's core operations. Adjusted EBITDA is also a non-GAAP
measure that excludes the effects of gains (losses) associated with
our retained interest in U. S. Steel Canada Inc., gains (losses) on
the sale of ownership interests in equity investees, restructuring
charges and impairment charges. 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, by excluding the effects of gains (losses) associated
with our retained interest in U. S. Steel Canada Inc., gains
(losses) on the sale of ownership interests in equity investees,
restructuring charges, impairment charges and debt extinguishment
and other related costs 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
as alternative measures of operating performance and not
alternative measures of the Company's liquidity. 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.
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 1, 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 the “Investors” section. For more information on
U. S. Steel, visit our website.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTSThis 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, 2016, 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.
-oOo-
| |
| UNITED STATES STEEL CORPORATION |
| STATEMENT OF OPERATIONS (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Quarter Ended |
|
Nine Months Ended |
| |
|
|
September 30, |
|
September 30, |
| (Dollars in millions, except per share amounts) |
2017 |
|
2016 |
|
2017 |
|
2016 |
| NET
SALES |
|
$ |
3,248 |
|
|
$ |
2,686 |
|
|
$ |
9,117 |
|
|
$ |
7,611 |
|
| |
|
|
|
|
|
|
|
|
|
| OPERATING
EXPENSES (INCOME): |
|
|
|
|
|
|
|
| |
Cost of
sales (excludes items shown below) |
2,829 |
|
|
2,360 |
|
|
8,115 |
|
|
7,193 |
|
| |
Selling,
general and administrative expenses |
89 |
|
|
73 |
|
|
265 |
|
|
206 |
|
| |
Depreciation, depletion and amortization |
118 |
|
|
126 |
|
|
376 |
|
|
384 |
|
| |
Earnings
from investees |
(9 |
) |
|
(18 |
) |
|
(29 |
) |
|
(91 |
) |
| |
Gain
associated with retained interest in U. S. Steel Canada
Inc. |
— |
|
|
— |
|
|
(72 |
) |
|
— |
|
| |
Gain on
equity investee transactions |
(21 |
) |
|
— |
|
|
(21 |
) |
|
— |
|
| |
Impairment
of intangible assets |
— |
|
|
14 |
|
|
— |
|
|
14 |
|
| |
Restructuring and other charges |
(2 |
) |
|
(3 |
) |
|
30 |
|
|
1 |
|
| |
Net (gain)
loss on disposal of assets |
(1 |
) |
|
3 |
|
|
(2 |
) |
|
6 |
|
| |
Other
income, net |
— |
|
|
(1 |
) |
|
(5 |
) |
|
(1 |
) |
| |
|
|
|
|
|
|
|
|
|
| |
Total operating expenses |
3,003 |
|
|
2,554 |
|
|
8,657 |
|
|
7,712 |
|
| |
|
|
|
|
|
|
|
|
|
| EARNINGS
(LOSS) BEFORE INTEREST AND INCOME TAXES |
245 |
|
|
132 |
|
|
460 |
|
|
(101 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
| Net
interest and other financial costs |
98 |
|
|
62 |
|
|
229 |
|
|
208 |
|
| |
|
|
|
|
|
|
|
|
|
| |
EARNINGS
(LOSS) BEFORE INCOME TAXES |
147 |
|
|
70 |
|
|
231 |
|
|
(309 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Income tax
provision |
— |
|
|
19 |
|
|
3 |
|
|
26 |
|
| |
|
|
|
|
|
|
|
|
|
| Net
earnings (loss) |
147 |
|
|
51 |
|
|
228 |
|
|
(335 |
) |
| |
Less: Net
earnings (loss) attributable to the noncontrolling interests |
— |
|
|
— |
|
|
— |
|
|
— |
|
| |
|
|
|
|
|
|
|
| NET
EARNINGS (LOSS) ATTRIBUTABLE TO UNITED STATES STEEL
CORPORATION |
$ |
147 |
|
|
$ |
51 |
|
|
$ |
228 |
|
|
$ |
(335 |
) |
| |
|
|
|
|
|
|
|
|
|
| COMMON
STOCK DATA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net
earnings (loss) per share attributable to United States Steel
Corporation stockholders: |
|
|
|
|
|
|
|
| |
Basic |
|
$ |
0.84 |
|
|
$ |
0.32 |
|
|
$ |
1.30 |
|
|
$ |
(2.22 |
) |
| |
Diluted |
|
$ |
0.83 |
|
|
$ |
0.32 |
|
|
$ |
1.29 |
|
|
$ |
(2.22 |
) |
| |
|
|
|
|
|
|
|
|
|
| Weighted
average shares, in thousands |
|
|
|
|
|
|
|
| |
Basic |
|
175,003 |
|
|
160,513 |
|
|
174,684 |
|
|
151,199 |
|
| |
Diluted |
|
176,484 |
|
|
161,700 |
|
|
176,336 |
|
|
151,199 |
|
| |
|
|
|
|
|
|
|
|
|
| Dividends paid per common share |
$ |
0.05 |
|
|
$ |
0.05 |
|
|
$ |
0.15 |
|
|
$ |
0.15 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| UNITED STATES STEEL CORPORATION |
| CASH FLOW STATEMENT (Unaudited) |
|
|
|
|
|
|
|
| |
|
|
Nine Months Ended |
| |
|
|
September 30, |
| (Dollars in millions) |
|
2017 |
|
2016 |
| Cash
provided by operating activities: |
|
|
|
| |
Net earnings
(loss) |
|
$ |
228 |
|
|
$ |
(335 |
) |
| |
Depreciation, depletion and amortization |
376 |
|
|
384 |
|
| |
Gain
associated with retained interest in U. S. Steel Canada Inc. |
(72 |
) |
|
— |
|
| |
Gain on
equity investee transactions |
(21 |
) |
|
— |
|
| |
Impairment
of intangible assets |
— |
|
|
14 |
|
| |
Restructuring and other charges |
30 |
|
|
1 |
|
| |
Pensions
and other postretirement benefits |
42 |
|
|
(38 |
) |
| |
Deferred
income taxes |
7 |
|
|
9 |
|
| |
Net (gain)
loss on disposal of assets |
(2 |
) |
|
6 |
|
| |
Working
capital changes |
(216 |
) |
|
491 |
|
| |
Income
taxes receivable/payable |
15 |
|
|
14 |
|
| |
Other
operating activities |
154 |
|
|
34 |
|
| |
Total |
|
541 |
|
|
580 |
|
| |
|
|
|
|
|
| Cash used
in investing activities: |
|
|
|
| |
Capital
expenditures |
|
(291 |
) |
|
(268 |
) |
| |
Disposal of assets |
|
— |
|
|
6 |
|
| |
Proceeds
from sale of ownership interest in equity investee |
105 |
|
|
— |
|
| |
Other investing
activities |
|
(4 |
) |
|
(20 |
) |
| |
Total |
|
(190 |
) |
|
(282 |
) |
| |
|
|
|
|
|
| Cash (used
in) provided by financing activities: |
|
|
|
| |
Issuance of
long-term debt, net of financing costs |
737 |
|
|
958 |
|
| |
Repayment of long-term
debt |
|
(902 |
) |
|
(1,019 |
) |
| |
Settlement
of contingent consideration |
— |
|
|
(15 |
) |
| |
Common stock
issued |
|
— |
|
|
482 |
|
| |
Dividends
paid |
(26 |
) |
|
(22 |
) |
| |
Receipts from exercise
of stock options |
|
14 |
|
|
4 |
|
| |
Taxes paid for equity
compensation plans (a) |
|
(10 |
) |
|
(3 |
) |
| |
Total |
|
(187 |
) |
|
385 |
|
| |
|
|
|
|
|
| Effect of
exchange rate changes on cash |
15 |
|
|
7 |
|
| |
|
|
|
|
|
| Net
increase in cash and cash equivalents |
179 |
|
|
690 |
|
| Cash and
cash equivalents at beginning of the year |
1,515 |
|
|
755 |
|
| |
|
|
|
|
|
| Cash and cash equivalents at end of the period |
$ |
1,694 |
|
|
$ |
1,445 |
|
|
(a) Effective January 1, 2017, the Company adopted Accounting
Standards Update No. 2016-09, Compensation - Stock Compensation
(ASU 2016-09). As a result of adopting ASU 2016-09, cash taxes paid
by the Company when directly withholding shares for tax withholding
purposes have been classified as a cash flow financing activity.
The adoption of this component of ASU 2016-09 was applied
retrospectively, and the impact is reflected in the cash flow
statement for the nine months ended September 30, 2016
accordingly. |
|
|
| |
| UNITED STATES STEEL CORPORATION |
| CONDENSED BALANCE SHEET (Unaudited) |
|
|
|
|
|
|
|
| |
|
|
Sept. 30 |
|
Dec. 31 |
| (Dollars in millions) |
|
2017 |
|
2016 |
| Cash and
cash equivalents |
$ |
1,694 |
|
|
$ |
1,515 |
|
|
Receivables, net |
1,527 |
|
|
1,248 |
|
|
Inventories |
1,737 |
|
|
1,573 |
|
| Other
current assets |
43 |
|
|
20 |
|
| |
Total
current assets |
5,001 |
|
|
4,356 |
|
| Property,
plant and equipment, net |
4,111 |
|
|
3,979 |
|
| Investments
and long-term receivables, net |
470 |
|
|
528 |
|
| Intangible
assets, net |
169 |
|
|
175 |
|
| Other
assets |
127 |
|
|
122 |
|
| |
|
|
|
|
|
| |
Total assets |
|
$ |
9,878 |
|
|
$ |
9,160 |
|
| |
|
|
|
|
|
| Accounts
payable and other accrued liabilities |
$ |
2,097 |
|
|
$ |
1,668 |
|
| Payroll and
benefits payable |
333 |
|
|
400 |
|
| Short-term
debt and current maturities of long-term debt |
3 |
|
|
50 |
|
| Other
current liabilities |
219 |
|
|
213 |
|
| |
Total
current liabilities |
2,652 |
|
|
2,331 |
|
| Long-term
debt, less unamortized discount and debt issuance costs |
2,896 |
|
|
2,981 |
|
| Employee
benefits |
1,119 |
|
|
1,216 |
|
| Other
long-term liabilities |
403 |
|
|
357 |
|
| United
States Steel Corporation stockholders' equity |
2,807 |
|
|
2,274 |
|
|
Noncontrolling interests |
1 |
|
|
1 |
|
| |
|
|
|
|
|
|
|
Total liabilities and stockholders' equity |
$ |
9,878 |
|
|
$ |
9,160 |
|
| |
|
|
|
|
|
|
|
|
| |
| UNITED STATES STEEL CORPORATION |
| NON-GAAP FINANCIAL MEASURES (Unaudited) |
| |
| RECONCILIATION OF ADJUSTED
EBITDA |
|
|
|
|
|
|
|
|
|
|
| |
|
Quarter Ended |
|
Nine Months Ended |
| |
|
September 30, |
|
September 30, |
| (Dollars in millions) |
2017 |
|
2016 |
|
2017 |
|
2016 |
|
Reconciliation to Adjusted EBITDA |
|
|
|
|
|
|
|
| |
Net earnings (loss)
attributable to United States Steel Corporation |
$ |
147 |
|
|
$ |
51 |
|
|
$ |
228 |
|
|
$ |
(335 |
) |
| |
Income tax
provision |
— |
|
|
19 |
|
|
3 |
|
|
26 |
|
| |
Net interest and other
financial costs |
98 |
|
|
62 |
|
|
229 |
|
|
208 |
|
| |
Depreciation, depletion
and amortization expense |
118 |
|
|
126 |
|
|
376 |
|
|
384 |
|
| |
EBITDA |
363 |
|
|
258 |
|
|
836 |
|
|
283 |
|
| |
Gain associated with
retained interest in U. S. Steel Canada Inc. |
— |
|
|
— |
|
|
(72 |
) |
|
— |
|
| |
Gain on equity investee
transactions |
(21 |
) |
|
— |
|
|
(21 |
) |
|
— |
|
| |
Loss on shutdown of
certain tubular pipe mill assets |
— |
|
|
— |
|
|
35 |
|
|
— |
|
| |
Impairment of
intangible assets |
— |
|
|
14 |
|
|
— |
|
|
14 |
|
|
|
Restructuring and other charges and adjustments |
— |
|
|
— |
|
|
— |
|
|
2 |
|
|
|
Adjusted
EBITDA |
$ |
342 |
|
|
$ |
272 |
|
|
$ |
778 |
|
|
$ |
299 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| RECONCILIATION OF ADJUSTED NET EARNINGS
(LOSS) |
|
|
|
|
|
|
|
|
|
|
| |
|
Quarter Ended(a) |
|
Nine Months Ended(a) |
| |
|
September 30, |
|
September 30, |
| (Dollars in millions, except per share amounts) |
2017 |
|
2016 |
|
2017 |
|
2016 |
|
Reconciliation to adjusted net earnings (loss) attributable
to United States Steel Corporation |
|
|
|
|
|
|
|
| |
Net earnings (loss)
attributable to United States Steel Corporation |
$ |
147 |
|
|
$ |
51 |
|
|
$ |
228 |
|
|
$ |
(335 |
) |
| |
Gain associated with
retained interest in U. S. Steel Canada Inc. |
— |
|
|
— |
|
|
(72 |
) |
|
— |
|
| |
Gain on equity investee
transactions |
(21 |
) |
|
— |
|
|
(21 |
) |
|
— |
|
| |
Loss on debt
extinguishment and other related costs |
35 |
|
|
— |
|
|
35 |
|
|
22 |
|
| |
Loss on shutdown of
certain tubular assets |
— |
|
|
— |
|
|
35 |
|
|
— |
|
| |
Impairment of
intangible assets |
— |
|
|
14 |
|
|
— |
|
|
14 |
|
| |
Restructuring and other
charges and adjustments |
— |
|
|
— |
|
|
— |
|
|
2 |
|
| |
Total
adjustments |
14 |
|
|
14 |
|
|
(23 |
) |
|
38 |
|
| |
Adjusted net earnings
(loss) attributable to United States Steel Corporation |
$ |
161 |
|
|
$ |
65 |
|
|
$ |
205 |
|
|
$ |
(297 |
) |
| |
|
|
|
|
|
|
|
|
|
Reconciliation to adjusted diluted net earnings (loss) per
share |
|
|
|
|
|
|
|
| |
Diluted net earnings
(loss) per share |
$ |
0.83 |
|
|
$ |
0.32 |
|
|
$ |
1.29 |
|
|
$ |
(2.22 |
) |
| |
Gain associated with
retained interest in U. S. Steel Canada Inc. |
— |
|
|
— |
|
|
(0.41 |
) |
|
— |
|
| |
Gain on equity investee
transactions |
(0.11 |
) |
|
— |
|
|
(0.11 |
) |
|
— |
|
| |
Loss on debt
extinguishment and other related costs |
0.20 |
|
|
— |
|
|
0.20 |
|
|
0.15 |
|
| |
Loss on shutdown of
certain tubular assets |
— |
|
|
— |
|
|
0.20 |
|
|
— |
|
| |
Impairment of
intangible assets |
— |
|
|
0.08 |
|
|
— |
|
|
0.09 |
|
| |
Restructuring and other
charges and adjustments |
— |
|
|
— |
|
|
— |
|
|
0.02 |
|
| |
Total
adjustments |
0.09 |
|
|
0.08 |
|
|
(0.12 |
) |
|
0.26 |
|
|
|
Adjusted
diluted net earnings (loss) per share |
$ |
0.92 |
|
|
$ |
0.40 |
|
|
$ |
1.17 |
|
|
$ |
(1.96 |
) |
|
(a) The adjustments included in this table 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) |
2017 |
|
Reconciliation to Projected Annual Adjusted EBITDA Included
in Outlook |
|
| |
Projected net earnings
attributable to United States Steel Corporation included in
Outlook |
$ |
323 |
|
| |
Gain associated with
retained interest in U. S. Steel Canada Inc. |
(72 |
) |
| |
Gain on equity investee
transactions |
(21 |
) |
| |
Loss on shutdown of
certain tubular assets |
35 |
|
|
|
Loss on
debt extinguishment and other related costs |
35 |
|
| |
Adjusted net earnings
attributable to United States Steel Corporation included in
Outlook |
$ |
300 |
|
| |
Estimated income tax
expense |
10 |
|
| |
Estimated net interest
and other financial costs |
250 |
|
|
|
Estimated
depreciation, depletion and amortization |
515 |
|
|
|
Projected
annual adjusted EBITDA included in Outlook |
$ |
1,075 |
|
| |
|
|
|
|
| |
| UNITED STATES STEEL CORPORATION |
| RECONCILIATION OF NET DEBT |
| |
|
|
|
| |
|
Sept. 30 |
June 30 |
| (Dollars in millions) |
2017 |
2017 |
|
Reconciliation of net debt |
|
|
| |
Short-term debt and
current maturities of long-term debt |
$ |
3 |
|
$ |
175 |
|
| |
Long-term debt, less
unamortized discount and debt issuance costs |
2,896 |
|
2,752 |
|
|
|
Total debt |
$ |
2,899 |
|
$ |
2,927 |
|
|
|
Less:
Cash and cash equivalents |
1,694 |
|
1,522 |
|
|
|
Net
debt |
$ |
1,205 |
|
$ |
1,405 |
|
| |
|
|
|
|
|
|
|
| |
| UNITED STATES STEEL CORPORATION |
| PRELIMINARY SUPPLEMENTAL STATISTICS (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
Quarter Ended |
|
Nine Months Ended |
| |
|
|
|
September 30, |
|
September 30, |
|
|
|
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
| OPERATING
STATISTICS |
|
|
|
|
|
|
|
| |
Average
realized price: (a) |
|
|
|
|
|
|
|
| |
|
Flat-Rolled
($/net ton) |
728 |
|
718 |
|
730 |
|
658 |
| |
|
U. S. Steel
Europe ($/net ton) |
639 |
|
503 |
|
617 |
|
483 |
| |
|
U. S. Steel Europe (euro/net ton) |
544 |
|
451 |
|
554 |
|
433 |
| |
|
Tubular
($/net ton) |
1,433 |
|
1,049 |
|
1,268 |
|
1,094 |
| |
Steel
Shipments (thousands of net tons): (a) |
|
|
|
|
|
|
|
| |
|
Flat-Rolled |
2,544 |
|
2,535 |
|
7,445 |
|
7,725 |
| |
|
U. S. Steel
Europe |
1,067 |
|
1,105 |
|
3,333 |
|
3,235 |
| |
|
Tubular |
185 |
|
103 |
|
509 |
|
262 |
| |
|
|
Total
Steel Shipments |
3,796 |
|
3,743 |
|
11,287 |
|
11,222 |
| |
|
|
|
|
|
|
|
|
|
|
| |
Intersegment Shipments (thousands of net tons): |
|
|
|
|
|
|
|
| |
|
Flat-Rolled
to Tubular |
43 |
|
— |
|
137 |
|
42 |
| |
|
USSE to
Flat-Rolled |
— |
|
— |
|
47 |
|
— |
| |
Raw Steel
Production (thousands of net tons): |
|
|
|
|
|
|
|
| |
|
Flat-Rolled |
2,821 |
|
2,734 |
|
8,247 |
|
8,248 |
| |
|
U. S. Steel
Europe |
1,235 |
|
1,279 |
|
3,778 |
|
3,689 |
| |
Raw Steel
Capability Utilization: (b) |
|
|
|
|
|
|
|
| |
|
Flat-Rolled |
66% |
|
64% |
|
65% |
|
65% |
| |
|
U. S. Steel
Europe |
98% |
|
102% |
|
101% |
|
98% |
| |
|
|
|
|
|
|
|
|
|
|
CAPITAL EXPENDITURES |
|
|
|
|
|
|
|
| |
Flat-Rolled |
$ |
134 |
|
$ |
23 |
|
$ |
206 |
|
$ |
97 |
| |
U. S. Steel
Europe |
28 |
|
17 |
|
62 |
|
68 |
| |
Tubular |
8 |
|
11 |
|
19 |
|
81 |
| |
Other
Businesses |
1 |
|
— |
|
4 |
|
22 |
| |
|
|
|
|
|
|
|
|
|
|
Total |
$ |
171 |
|
$ |
51 |
|
$ |
291 |
|
$ |
268 |
|
(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. |
|
|
CONTACTS:
MediaMeghan CoxManagerCorporate CommunicationsT - (412)
433-6777E - mmcox@uss.com
Investors/AnalystsDan LesnakGeneral ManagerInvestor RelationsT -
(412) 433-1184E - dtlesnak@uss.com
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