United States Steel Corporation (NYSE: X) reported a full-year
2019 net loss of $642 million, or $3.75 per diluted share.
Adjusted net earnings were $15 million, or $0.09 per diluted
share. This compares to full-year 2018 net earnings of $1,115
million, or $6.25 per diluted share. Adjusted net earnings
for 2018 were $957 million, or $5.36 per diluted share.
Fourth quarter 2019 net loss of $680 million, or
$4.00 per diluted share. Adjusted net loss was $109 million,
or $0.64 per diluted share. This compares to fourth quarter 2018
net earnings of $592 million, or $3.34 per diluted share.
Adjusted net earnings for fourth quarter 2018 were $324 million, or
$1.82 per diluted share.
|
Earnings Highlights |
| |
| |
Quarter Ended |
|
Year Ended |
| |
December 31, |
|
December 31, |
|
(Dollars in millions, except per share amounts) |
2019 |
|
2018 |
|
2019 |
|
2018 |
|
Net Sales |
$ |
2,824 |
|
|
$ |
3,691 |
|
|
$ |
12,937 |
|
|
$ |
14,178 |
|
|
Segment (loss) earnings before interest and income
taxes |
|
|
|
|
|
|
|
|
Flat-Rolled |
$ |
(79 |
) |
|
$ |
328 |
|
|
$ |
196 |
|
|
$ |
883 |
|
|
U. S. Steel Europe |
(30 |
) |
|
62 |
|
|
(57 |
) |
|
359 |
|
|
Tubular |
(46 |
) |
|
(3 |
) |
|
(67 |
) |
|
(58 |
) |
|
Other Businesses |
(3 |
) |
|
11 |
|
|
23 |
|
|
55 |
|
|
Total segment (loss) earnings before interest and income
taxes |
$ |
(158 |
) |
|
$ |
398 |
|
|
$ |
95 |
|
|
$ |
1,239 |
|
|
Other items not allocated to segments |
(218 |
) |
|
(85 |
) |
|
(325 |
) |
|
(115 |
) |
|
(Loss) earnings before interest and income
taxes |
$ |
(376 |
) |
|
$ |
313 |
|
|
$ |
(230 |
) |
|
$ |
1,124 |
|
|
Net interest and other financial costs |
71 |
|
|
60 |
|
|
222 |
|
|
312 |
|
|
Income tax provision (benefit) |
233 |
|
|
(339 |
) |
|
190 |
|
|
(303 |
) |
|
Net (loss) earnings |
$ |
(680 |
) |
|
$ |
592 |
|
|
$ |
(642 |
) |
|
$ |
1,115 |
|
|
(Loss) earnings per diluted share |
$ |
(4.00 |
) |
|
$ |
3.34 |
|
|
$ |
(3.75 |
) |
|
$ |
6.25 |
|
|
|
|
|
|
|
|
|
|
|
Adjusted net (loss) earnings (a) |
$ |
(109 |
) |
|
$ |
324 |
|
|
$ |
15 |
|
|
$ |
957 |
|
|
Adjusted net (loss) earnings per diluted share
(a) |
$ |
(0.64 |
) |
|
$ |
1.82 |
|
|
$ |
0.09 |
|
|
$ |
5.36 |
|
|
Adjusted earnings before interest, income taxes,
depreciation and amortization (EBITDA) (a) |
$ |
4 |
|
|
$ |
535 |
|
|
$ |
711 |
|
|
$ |
1,760 |
|
(a) Please refer to the non-GAAP Financial Measures section of
this document for the reconciliation of these amounts.
“We are pleased to deliver better than expected
results to end the year and are excited to turn the page to 2020
where we will continue to transition the business towards our
future," said U. S. Steel President and Chief Executive Officer
David B. Burritt. "2019 was a year of notable strategic
progress and we took swift action to reposition the business ... we
achieved $75 million of run-rate fixed cost reductions, we
demonstrated flexibility by adjusting our 2020 capital spending to
prioritize strategic investments, and we de-risked strategy
execution by raising $1.1 billion of incremental capital."
Burritt continued, “We will take another step
towards our world-competitive, 'best of both' strategy this year as
we complete two important strategic projects … the electric arc
furnace at Tubular and our XG3 AHSS investment at our PRO-TEC joint
venture. These projects will be yet another proof point to
the market that our strategy will deliver cost and capability
differentiation that is valuable to our customers, stockholders and
employees. I have never been more confident in our strategy
and that our investments in Big River and Endless Casting and
Rolling are the right priorities. We won't be the biggest
steel company ... but we will be the only 'best of both' steel
company."
The Company currently expects the first quarter
of 2020 to be the trough for the year due to the normal seasonality
of our mining operations and lower first quarter shipments in
Flat-rolled as the Company prepares for the April blast furnace
outage at Gary Works. Big River Steel expects their full-year
2020 depreciation and amortization expense and net interest costs
to be approximately $150 million and approximately $95 million,
respectively.
The Company will conduct a conference call on the
fourth quarter and full-year 2019 earnings on Friday, January 31,
at 8:30 a.m. Eastern Standard. To listen to the webcast of
the conference call, and to access the company's slide
presentation, visit the U. S. Steel website,
www.ussteel.com, and click on the “Investors” section. Replays of
the conference call will be available on the website after 10:30
a.m. on January 31.
|
UNITED STATES STEEL CORPORATION |
|
PRELIMINARY SUPPLEMENTAL STATISTICS (Unaudited) |
|
|
|
|
|
|
|
|
|
|
| |
|
Quarter Ended |
|
Year Ended |
| |
|
December 31, |
|
December 31, |
|
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
| OPERATING
STATISTICS |
|
|
|
|
|
|
|
| Average realized
price: ($/net ton unless otherwise noted)(a) |
|
|
|
|
|
|
|
| |
Flat-Rolled |
699 |
|
|
823 |
|
|
753 |
|
|
811 |
|
| |
U. S. Steel
Europe |
622 |
|
|
686 |
|
|
652 |
|
|
693 |
|
| |
U. S. Steel Europe
(€/net ton) |
562 |
|
|
601 |
|
|
582 |
|
|
586 |
|
| |
Tubular |
1,298 |
|
|
1,488 |
|
|
1,450 |
|
|
1,483 |
|
| Steel shipments
(thousands of net tons):(a) |
|
|
|
|
|
|
|
| |
Flat-Rolled |
2,517 |
|
|
2,733 |
|
|
10,700 |
|
|
10,510 |
|
| |
U. S. Steel
Europe |
757 |
|
|
1,073 |
|
|
3,590 |
|
|
4,457 |
|
| |
Tubular |
193 |
|
|
216 |
|
|
769 |
|
|
780 |
|
| |
Total Steel
Shipments |
3,467 |
|
|
4,022 |
|
|
15,059 |
|
|
15,747 |
|
| |
|
|
|
|
|
|
|
|
| Intersegment steel
(unless otherwise noted) shipments (thousands of net tons): |
|
|
|
|
|
|
|
| |
Flat-Rolled to Tubular |
46 |
|
|
66 |
|
|
258 |
|
|
224 |
|
| |
Flat-Rolled to U. S. Steel
Europe (iron ore pellets and fines) |
— |
|
|
— |
|
|
424 |
|
|
— |
|
| |
U. S. Steel Europe
to Flat-Rolled |
— |
|
|
— |
|
|
— |
|
|
22 |
|
| Raw steel
production (thousands of net tons): |
|
|
|
|
|
|
|
| |
Flat-Rolled |
2,567 |
|
|
3,334 |
|
|
11,409 |
|
|
11,893 |
|
| |
U. S. Steel
Europe |
773 |
|
|
1,213 |
|
|
3,903 |
|
|
5,023 |
|
| Raw steel
capability utilization:(b) |
|
|
|
|
|
|
|
| |
Flat-Rolled |
60 |
% |
|
78 |
% |
|
67 |
% |
|
70 |
% |
| |
U. S. Steel Europe |
61 |
% |
|
96 |
% |
|
78 |
% |
|
100 |
% |
| |
|
|
|
|
|
|
|
|
| CAPITAL
EXPENDITURES (dollars in millions) |
|
|
|
|
|
|
|
| |
Flat-Rolled |
$ |
179 |
|
|
$ |
289 |
|
|
$ |
943 |
|
|
$ |
820 |
|
| |
U. S. Steel
Europe |
42 |
|
|
41 |
|
|
153 |
|
|
104 |
|
| |
Tubular |
48 |
|
|
12 |
|
|
145 |
|
|
45 |
|
| |
Other Businesses |
5 |
|
|
13 |
|
|
11 |
|
|
32 |
|
|
|
Total |
$ |
274 |
|
|
$ |
355 |
|
|
$ |
1,252 |
|
|
$ |
1,001 |
|
| (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. |
|
UNITED STATES STEEL CORPORATION |
|
CONDENSED STATEMENT OF OPERATIONS (Unaudited) |
|
|
|
|
|
|
|
|
|
|
| |
|
Quarter Ended |
|
Year Ended |
| |
|
December 31, |
|
December 31, |
| (Dollars in
millions, except per share amounts) |
2019 |
|
2018 |
|
2019 |
|
2018 |
|
NET SALES |
|
$ |
2,824 |
|
|
$ |
3,691 |
|
|
$ |
12,937 |
|
|
$ |
14,178 |
|
| |
|
|
|
|
|
|
|
|
| Operating expenses
(income): |
|
|
|
|
|
|
|
|
|
Cost of sales (excludes items shown below) |
|
2,781 |
|
|
3,204 |
|
|
12,082 |
|
|
12,305 |
|
|
Selling, general and administrative expenses |
|
66 |
|
|
85 |
|
|
289 |
|
|
336 |
|
|
Depreciation, depletion and amortization |
|
162 |
|
|
137 |
|
|
616 |
|
|
521 |
|
|
Earnings from investees |
|
(11 |
) |
|
(22 |
) |
|
(79 |
) |
|
(61 |
) |
|
Gain on equity investee transactions |
|
— |
|
|
(20 |
) |
|
— |
|
|
(38 |
) |
|
Restructuring charges |
|
221 |
|
|
— |
|
|
275 |
|
|
— |
|
|
Net gain on disposal of assets |
|
(4 |
) |
|
(3 |
) |
|
(1 |
) |
|
(6 |
) |
|
Other income, net |
|
(15 |
) |
|
(3 |
) |
|
(15 |
) |
|
(3 |
) |
| Total operating expenses |
|
3,200 |
|
|
3,378 |
|
|
13,167 |
|
|
13,054 |
|
| |
|
|
|
|
|
|
|
|
| (LOSS) EARNINGS BEFORE
INTEREST AND INCOME TAXES |
|
(376 |
) |
|
313 |
|
|
(230 |
) |
|
1,124 |
|
| Net interest and other
financial costs |
|
71 |
|
|
60 |
|
|
222 |
|
|
312 |
|
| |
|
|
|
|
|
|
|
|
| (LOSS) EARNINGS BEFORE INCOME
TAXES |
|
(447 |
) |
|
253 |
|
|
(452 |
) |
|
812 |
|
| Income tax provision
(benefit) |
|
233 |
|
|
(339 |
) |
|
190 |
|
|
(303 |
) |
| |
|
|
|
|
|
|
|
|
| Net (loss) earnings |
|
(680 |
) |
|
592 |
|
|
(642 |
) |
|
1,115 |
|
| Less: Net earnings (loss)
attributable to noncontrolling interests |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
| NET (LOSS) EARNINGS
ATTRIBUTABLE TO UNITED STATES STEEL CORPORATION |
|
$ |
(680 |
) |
|
$ |
592 |
|
|
$ |
(642 |
) |
|
$ |
1,115 |
|
| |
|
|
|
|
|
|
|
|
| COMMON
STOCK DATA: |
|
|
|
|
|
|
|
|
| Net (loss) earnings per share
attributable to |
|
|
|
|
|
|
|
|
| United States Steel
Corporation stockholders: |
|
|
|
|
|
|
|
|
| Basic |
|
$ |
(4.00 |
) |
|
$ |
3.36 |
|
|
$ |
(3.75 |
) |
|
$ |
6.31 |
|
| Diluted |
|
$ |
(4.00 |
) |
|
$ |
3.34 |
|
|
$ |
(3.75 |
) |
|
$ |
6.25 |
|
| Weighted average
shares, in thousands |
|
|
|
|
|
|
|
|
| Basic |
|
170,041 |
|
|
176,091 |
|
|
171,418 |
|
|
176,633 |
|
| Diluted |
|
170,041 |
|
|
177,649 |
|
|
171,418 |
|
|
178,461 |
|
|
Dividends paid per common share |
|
$ |
0.05 |
|
|
$ |
0.05 |
|
|
$ |
0.20 |
|
|
$ |
0.20 |
|
|
UNITED STATES STEEL CORPORATION |
|
CONDENSED CASH FLOW STATEMENT (Unaudited) |
|
|
|
|
|
|
|
|
| |
|
|
|
Year Ended |
| |
|
|
|
December 31, |
|
(Dollars in millions) |
|
2019 |
|
2018 |
| Cash provided by
(used in) operating activities: |
|
|
|
| |
Net (loss)
earnings |
$ |
(642 |
) |
|
$ |
1,115 |
|
| |
Depreciation,
depletion and amortization |
616 |
|
|
521 |
|
| |
Gain on equity
investee transactions |
— |
|
|
(38 |
) |
| |
Restructuring
charges |
275 |
|
|
— |
|
| |
Loss on debt
extinguishment |
— |
|
|
98 |
|
| |
Pensions and other
post-employment benefits |
101 |
|
|
77 |
|
| |
Deferred income
taxes |
215 |
|
|
(329 |
) |
| |
Net gain on
disposal of assets |
(1 |
) |
|
(6 |
) |
| |
Working capital
changes |
276 |
|
|
(404 |
) |
| |
Income taxes
receivable/payable |
13 |
|
|
(8 |
) |
| |
Other operating
activities |
(171 |
) |
|
(88 |
) |
| |
|
Total |
|
682 |
|
|
938 |
|
| |
|
|
|
|
|
|
| Cash used in
investing activities: |
|
|
|
| |
Capital
expenditures |
(1,252 |
) |
|
(1,001 |
) |
| |
Investment in Big
River Steel |
(710 |
) |
|
— |
|
| |
Disposal of
assets |
4 |
|
|
10 |
|
| |
Proceeds from sale
of ownership interests in equity investees |
— |
|
|
30 |
|
| |
Other investing
activities |
— |
|
|
(2 |
) |
| |
|
Total |
|
(1,958 |
) |
|
(963 |
) |
| |
|
|
|
|
|
|
| Cash provided by
(used in) financing activities: |
|
|
|
| |
Revolving credit
facilities - borrowings, net of financing costs |
860 |
|
|
228 |
|
| |
Revolving credit
facilities - repayments |
(100 |
) |
|
— |
|
| |
Issuance of
long-term debt, net of financing costs |
702 |
|
|
640 |
|
| |
Repayment of
long-term debt |
(155 |
) |
|
(1,299 |
) |
| |
Common stock
repurchased |
(88 |
) |
|
(75 |
) |
| |
Receipts from
exercise of stock options |
— |
|
|
35 |
|
| |
Taxes paid for
equity compensation plans |
(7 |
) |
|
(8 |
) |
| |
Dividends
paid |
(35 |
) |
|
(36 |
) |
| |
|
Total |
|
1,177 |
|
|
(515 |
) |
| |
|
|
|
|
|
|
| Effect of exchange
rate changes on cash |
(2 |
) |
|
(17 |
) |
| |
|
|
|
|
|
|
| Net decrease in
cash, cash equivalents and restricted cash |
(101 |
) |
|
(557 |
) |
| Cash, cash
equivalents and restricted cash at beginning of the year |
1,040 |
|
|
1,597 |
|
| |
|
|
|
|
|
|
| Cash,
cash equivalents and restricted cash at end of the period |
$ |
939 |
|
|
$ |
1,040 |
|
|
UNITED STATES STEEL CORPORATION |
|
CONDENSED BALANCE SHEET (Unaudited) |
|
|
|
|
|
|
|
| |
|
|
December 31, |
|
December 31, |
|
(Dollars in millions) |
|
2019 |
|
2018 |
| Cash and cash
equivalents |
$ |
749 |
|
|
$ |
1,000 |
|
| Receivables,
net |
1,177 |
|
|
1,659 |
|
| Inventories |
1,785 |
|
|
2,092 |
|
| Other current
assets |
102 |
|
|
79 |
|
| |
Total current
assets |
3,813 |
|
|
4,830 |
|
| Operating lease
assets |
230 |
|
|
— |
|
| Property, plant
and equipment, net |
5,447 |
|
|
4,865 |
|
| Investments and
long-term receivables, net |
1,466 |
|
|
513 |
|
| Intangible assets,
net |
150 |
|
|
158 |
|
| Deferred income
tax benefits |
7 |
|
|
445 |
|
| Other noncurrent
assets |
530 |
|
|
171 |
|
| |
|
|
|
|
|
| |
Total assets |
|
$ |
11,643 |
|
|
$ |
10,982 |
|
| |
|
|
|
|
|
| Accounts payable
and other accrued liabilities |
2,054 |
|
|
2,535 |
|
| Payroll and
benefits payable |
383 |
|
|
440 |
|
| Short-term debt
and current maturities of long-term debt |
14 |
|
|
65 |
|
| Other current
liabilities |
221 |
|
|
157 |
|
| |
Total current
liabilities |
2,672 |
|
|
3,197 |
|
| Noncurrent
operating lease liabilities |
177 |
|
|
— |
|
| Long-term debt,
less unamortized discount and debt issuance costs |
3,627 |
|
|
2,316 |
|
| Employee
benefits |
532 |
|
|
980 |
|
| Other long-term
liabilities |
554 |
|
|
286 |
|
| United States
Steel Corporation stockholders' equity |
4,080 |
|
|
4,202 |
|
| Noncontrolling
interests |
1 |
|
|
1 |
|
| |
|
|
|
|
|
|
|
Total
liabilities and stockholders' equity |
$ |
11,643 |
|
|
$ |
10,982 |
|
|
UNITED STATES STEEL CORPORATION |
|
|
NON-GAAP FINANCIAL MEASURES |
|
|
RECONCILIATION OF ADJUSTED NET (LOSS) EARNINGS |
|
|
|
|
|
|
|
|
|
|
|
| |
|
Quarter Ended |
|
Year Ended |
| |
|
December 31, |
|
December 31, |
|
(Dollars in millions, except per share amounts) (a) |
2019 |
|
2018 |
|
2019 |
|
2018 |
|
Reconciliation to adjusted net (loss) earnings attributable
to United States Steel Corporation |
|
|
|
|
|
|
|
| Net (loss)
earnings attributable to United States Steel Corporation |
$ |
(680 |
) |
|
$ |
592 |
|
|
$ |
(642 |
) |
|
$ |
1,115 |
|
| |
December 24, 2018 Clairton
coke making facility fire |
(3 |
) |
|
— |
|
|
41 |
|
|
— |
|
| |
Restructuring charges |
221 |
|
|
— |
|
|
263 |
|
|
— |
|
| |
Big River Steel options mark
to market |
7 |
|
|
— |
|
|
7 |
|
|
— |
|
| |
United Steelworkers labor
agreement signing bonus & related costs |
— |
|
|
88 |
|
|
— |
|
|
81 |
|
| |
Tax valuation allowance |
346 |
|
|
(374 |
) |
|
346 |
|
|
(374 |
) |
| |
Gain on equity investee
transactions |
— |
|
|
(20 |
) |
|
— |
|
|
(38 |
) |
| |
Loss on debt extinguishment
and related costs |
— |
|
|
21 |
|
|
— |
|
|
101 |
|
| |
Granite City Works restart
costs |
— |
|
|
17 |
|
|
— |
|
|
80 |
|
| |
Granite City Works temporary
idling charges |
— |
|
|
— |
|
|
— |
|
|
(8 |
) |
| |
Total adjustments |
571 |
|
|
(268 |
) |
|
657 |
|
|
(158 |
) |
| Adjusted net
(loss) earnings attributable to United States Steel
Corporation |
$ |
(109 |
) |
|
$ |
324 |
|
|
$ |
15 |
|
|
$ |
957 |
|
| |
|
|
|
|
|
|
|
|
|
Reconciliation to adjusted diluted net (loss) earnings per
share |
|
|
|
|
|
|
|
| Diluted net (loss)
earnings per share |
$ |
(4.00 |
) |
|
$ |
3.34 |
|
|
$ |
(3.75 |
) |
|
$ |
6.25 |
|
| |
December 24, 2018 Clairton
coke making facility fire |
(0.02 |
) |
|
— |
|
|
0.23 |
|
|
— |
|
| |
Restructuring charges |
1.30 |
|
|
— |
|
|
1.53 |
|
|
— |
|
| |
Big River Steel options mark
to market |
0.04 |
|
|
— |
|
|
0.04 |
|
|
— |
|
| |
United Steelworkers labor
agreement signing bonus & related costs |
— |
|
|
0.49 |
|
|
— |
|
|
0.45 |
|
| |
Tax valuation allowance |
2.04 |
|
|
(2.11 |
) |
|
2.04 |
|
|
(2.11 |
) |
| |
Gain on equity investee
transactions |
— |
|
|
(0.11 |
) |
|
— |
|
|
(0.21 |
) |
| |
Loss on debt extinguishment
and related costs |
— |
|
|
0.12 |
|
|
— |
|
|
0.57 |
|
| |
Granite City Works restart
costs |
— |
|
|
0.09 |
|
|
— |
|
|
0.45 |
|
| |
Granite City Works temporary
idling charges |
— |
|
|
— |
|
|
— |
|
|
(0.04 |
) |
| |
Total adjustments |
3.36 |
|
|
(1.52 |
) |
|
3.84 |
|
|
(0.89 |
) |
|
Adjusted diluted net (loss) earnings per share |
$ |
(0.64 |
) |
|
$ |
1.82 |
|
|
$ |
0.09 |
|
|
$ |
5.36 |
|
|
(a) The adjustments included in this table for the nine months
ended September 30, 2019 have been tax effected. This
includes the first nine months of the 2019 year to date amounts.
The adjustments for the three months ended December 31, 2019 and
the three and twelve months ended December 31, 2018 have not been
tax effected due to the full valuation allowance on our domestic
deferred tax assets in the fourth quarter of 2019 and the entirety
of 2018. |
|
|
UNITED STATES STEEL CORPORATION |
|
NON-GAAP FINANCIAL MEASURES |
|
RECONCILIATION OF ADJUSTED EBITDA |
|
|
|
|
|
|
|
|
|
|
| |
|
Quarter Ended |
|
Year Ended |
| |
|
December 31, |
|
December 31, |
|
(Dollars in millions) |
2019 |
|
2018 |
|
2019 |
|
2018 |
| Reconciliation to
Adjusted EBITDA |
|
|
|
|
|
|
|
| |
Net (loss) earnings
attributable to United States Steel Corporation |
$ |
(680 |
) |
|
$ |
592 |
|
|
$ |
(642 |
) |
|
$ |
1,115 |
|
| |
Income tax provision
(benefit) |
233 |
|
|
(339 |
) |
|
190 |
|
|
(303 |
) |
| |
Net interest and other
financial costs |
71 |
|
|
60 |
|
|
222 |
|
|
312 |
|
| |
Depreciation, depletion and
amortization expense |
162 |
|
|
137 |
|
|
616 |
|
|
521 |
|
| |
EBITDA |
(214 |
) |
|
450 |
|
|
386 |
|
|
1,645 |
|
| |
December 24, 2018 Clairton
coke making facility fire |
(3 |
) |
|
— |
|
|
50 |
|
|
— |
|
| |
Restructuring charges |
221 |
|
|
— |
|
|
275 |
|
|
— |
|
| |
United Steelworkers labor
agreement signing bonus & related costs |
— |
|
|
88 |
|
|
— |
|
|
81 |
|
| |
Gain on equity investee
transactions |
— |
|
|
(20 |
) |
|
— |
|
|
(38 |
) |
| |
Granite City Works restart
costs |
— |
|
|
17 |
|
|
— |
|
|
80 |
|
| |
Granite City Works temporary
idling charges |
— |
|
|
— |
|
|
— |
|
|
(8 |
) |
|
|
Adjusted EBITDA |
$ |
4 |
|
|
$ |
535 |
|
|
$ |
711 |
|
|
$ |
1,760 |
|
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.
Adjusted net earnings (loss) and adjusted net
earnings (loss) per diluted share are non-GAAP measures that
exclude the financial effects of items such as restructuring
charges, the December 24, 2018 Clairton coke making facility fire,
the Big River Steel options mark to market, United Steelworkers
labor agreement signing bonus and related costs, the impact of the
tax valuation allowance, the effects of gains on equity investee
transactions, debt extinguishment and other related costs, facility
restart costs, significant temporary idling charges and other
charges that are not part of the Company's core operations
(Adjustment Items). Adjusted EBITDA is also a non-GAAP
measure that excludes the financial effects of the Adjustment
Items. 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
Adjustment Items. 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. 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
condensed consolidated statement of operations (unaudited),
condensed consolidated cash flow statement (unaudited), condensed
consolidated balance sheet (unaudited) and preliminary supplemental
statistics (unaudited) for U. S. Steel are attached.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS
This release contains information that may
constitute “forward-looking statements” within the meaning of
Section 27A 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
changes, share of sales and earnings per share changes, 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, 2018, our Quarterly Report on Form 10-Q for the
quarter ended September 30, 2019, 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.
CONTACTS:MediaAmanda MalkowskiPublic Affairs
Rep.Corporate CommunicationsT - (412) 433-2512E -
almalkowski@uss.com
Investors/AnalystsKevin LewisGeneral
ManagerInvestor RelationsT - (412) 433-6935E - KLewis@uss.com
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