United States Steel Corporation (NYSE: X) today provided second
quarter 2022 guidance. Second quarter 2022 adjusted EBITDA is
expected to be approximately $1.6 billion, a new all-time best
second quarter performance. Second quarter 2022 adjusted net
earnings per diluted share is expected to be in the range of $3.83
to $3.88.
“We expect to continue delivering record performance in the
second quarter, with each business segment meaningfully
contributing to profitability,” commented U. S. Steel President and
Chief Executive Officer David B. Burritt. “Our broad end market
exposure keeps our business resilient with demand across a diverse
customer base, including the resurging energy market. Our focus on
strategic end markets and the continued realization of
significantly increased fixed price contracts is again expected to
generate another quarter of record performance.”
Commenting on the Company’s capital allocation strategy, Burritt
continued, “Our balance sheet remains strong with an overfunded
pension plan and no significant debt maturities until 2029. Our
strategic projects are pre-funded, with a current cash position
approaching $3 billion, and we accelerated our stock buybacks in
the second quarter. We continue to invest in the business with high
confidence and are well-positioned to execute on our Best for All®
strategy and capital allocation framework.”
Stockholder Returns Update
Quarter to date, the Company repurchased approximately $320
million of common stock. As of June 16, 2022, there is
approximately $210 million remaining under the Company’s $800
million stock buyback authorization.
Second Quarter Adjusted EBITDA Commentary
The Flat-rolled segment’s adjusted EBITDA is expected to be
meaningfully higher than the first quarter. Increased demand across
our diverse customer base is expected to result in higher shipment
volumes. Additionally, the absence of seasonal mining headwinds
that occur each year in the first quarter is expected to be an
additional tailwind.
The Mini Mill segment is expected to deliver adjusted EBITDA
similar to the first quarter’s strong performance. Increased order
activity is expected to be offset by lower average selling prices
and elevated metallics costs.
The European segment’s adjusted EBITDA is expected to improve on
the first quarter’s performance. Higher raw material costs
resulting from the war in Ukraine are expected to be more than
offset by higher steel selling prices in the region. We expect to
continue to operate in-line with customer demand as we closely
manage through the volatile geopolitical situation.
The Tubular segment’s adjusted EBITDA is expected to increase on
similar volumes compared to the first quarter. Higher selling
prices are expected to continue to flow through the segment’s
average selling price. The resurgence in the energy markets is
fueling demand for seamless pipe from our Fairfield Tubular
operations and the segment’s proprietary connections.
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,”
"plan," "goal," "future," “will,” "may" and similar expressions or
by using future dates in connection with any discussion of, among
other things, the construction or operation of new or existing
facilities, 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, anticipated cost savings, potential capital and
operational cash improvements, anticipated disruptions to our
operations and industry due to the COVID-19 pandemic, changes in
global supply and demand conditions and prices for our products,
international trade duties and other aspects of international trade
policy, statements regarding our future strategies, products and
innovations, statements regarding our greenhouse gas emissions
reduction goals, 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, 2021. and those described from time to time
in our future reports filed with the Securities and Exchange
Commission.
References to "U. S. Steel," "the Company," "we," "us," and
"our" refer to United States Steel Corporation and its consolidated
subsidiaries unless otherwise indicated by the context.
UNITED STATES STEEL
CORPORATION
NON-GAAP FINANCIAL MEASURES
RECONCILIATION OF ADJUSTED EBITDA
GUIDANCE
(Dollars in millions)
Reconciliation to Projected Adjusted
EBITDA Included in Guidance
2Q 2022
Projected net earnings attributable to
United States Steel Corporation included in guidance
$
945
Estimated income tax provision
275
Estimated net interest and other financial
costs (income)
(10
)
Estimated depreciation, depletion, and
amortization
190
Projected EBITDA included in guidance
$
1,400
Estimated second quarter adjustments
200
Projected adjusted EBITDA included in
guidance
$
1,600
UNITED STATES STEEL
CORPORATION
NON-GAAP FINANCIAL MEASURES
RECONCILIATION OF ADJUSTED NET
EARNINGS GUIDANCE
(Dollars in millions, except per share
amounts)
Reconciliation to Projected Adjusted
Net Earnings Attributable to U. S. Steel Included in
Guidance
2Q 2022
Projected net earnings attributable to
United States Steel Corporation included in guidance
$
945
Estimated second quarter adjustments
155
Projected adjusted net earnings
attributable to United States Steel Corporation included in
guidance
$
1,100
Reconciliation to Projected Adjusted
Net Earnings Per Diluted Share Included in Guidance
2Q 2022
Projected net earnings per diluted share
included in guidance (mid-point of guidance)
$
3.31
Estimated second quarter adjustments
0.54
Projected adjusted net earnings per
diluted share included in guidance (mid-point of guidance)
$
3.85
Note Regarding Non-GAAP Financial Measures
We present adjusted net earnings, adjusted net earnings per
diluted share, earnings 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, 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, adjusted net earnings per diluted share
and adjusted EBITDA are non-GAAP measures that exclude certain
charges that are not part of the Company’s core operations such as
restructuring or asset impairments (Adjustment Items). We present
adjusted net earnings, adjusted net earnings 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 events that can obscure
underlying trends. U. S. Steel’s management considers adjusted net
earnings, adjusted net earnings per diluted share and adjusted
EBITDA as alternative measures of operating performance and not
alternative measures of the Company's liquidity and believes these
measures are 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, adjusted net earnings 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 Adjustment Items when evaluating the Company’s
financial performance. Adjusted net earnings, adjusted net earnings
per diluted share and adjusted EBITDA should not be considered a
substitute for net earnings, earnings per diluted share or other
financial measures as computed in accordance with U.S. GAAP and are
not necessarily comparable to similarly titled measures used by
other companies.
Founded in 1901, United States Steel Corporation is a leading
steel producer. With an unwavering focus on safety, the company’s
customer-centric Best for All® strategy is advancing a more secure,
sustainable future for U. S. Steel and its stakeholders. With a
renewed emphasis on innovation, U. S. Steel serves the automotive,
construction, appliance, energy, containers, and packaging
industries with high value-added steel products such as U. S.
Steel’s proprietary XG3™ advanced high-strength steel. The company
also maintains competitively advantaged iron ore production and has
an annual raw steelmaking capability of 22.4 million net tons. U.
S. Steel is headquartered in Pittsburgh, Pennsylvania, with
world-class operations across the United States and in Central
Europe. For more information, please visit www.ussteel.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20220616005867/en/
Arista E. Joyner Manager Financial Communications T – (412)
433-3994 E –aejoyner@uss.com Kevin Lewis Vice President Investor
Relations T – (412) 433-6935 E – klewis@uss.com
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