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91制片厂 Corporation Reports First Quarter 2021 Results

  • Net earnings of $91 million, or $0.35 per diluted share
  • Adjusted net earnings of $283 million, or $1.08 per diluted share
  • Adjusted EBITDA of $551 million
  • Liquidity of $2.909 billion, including cash of $753 million

PITTSBURGH--(BUSINESS WIRE)-- 91制片厂 Corporation (NYSE: X) reported first quarter 2021 net earnings of $91 million, or $0.35 per diluted share. Adjusted net earnings was $283 million, or $1.08 per diluted share. This compares to first quarter 2020 net loss of $391 million, or $2.30 per diluted share. Adjusted net loss for first quarter 2020 was $123 million, or $0.73 per diluted share.

Earnings Highlights

Three Months Ended

March 31,

(Dollars in millions, except per share amounts)

2021

2020

Net Sales

$

3,664

$

2,748

Segment earnings (loss) before interest and income taxes

Flat-Rolled

$

146

$

(35

)

Mini Mill (a)

132

U. S. Steel Europe

105

(14

)

Tubular (b)

(29

)

(48

)

Other Businesses

8

1

Total segment earnings (loss) before interest and income taxes

$

362

$

(96

)

Other items not allocated to segments

63

(279

)

Earnings (loss) before interest and income taxes

$

425

$

(375

)

Net interest and other financial costs

333

35

Income tax provision (benefit)

1

(19

)

Net earnings (loss)

$

91

$

(391

)

Earnings (loss) per diluted share

$

0.35

$

(2.30

)

Adjusted net earnings (loss) (c)

$

283

(123

)

Adjusted net earnings (loss) per diluted share (c)

$

1.08

$

(0.73

)

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

$

551

64

(a) Mini Mill segment, added after January 15, 2021 with the purchase of the remaining equity interest in Big River Steel, does not include the newly constructed electric arc (EAF) at our Fairfield Tubular Operations in Fairfield, Alabama.

(b) The Fairfield EAF is included in the Tubular segment.

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

鈥淥ur optimism in the strength of our business is clearly confirmed in our first quarter performance,鈥 said U. S. Steel President and Chief Executive Officer David B. Burritt. 鈥淥ur first quarter adjusted EBITDA of $551 million reflects robust customer demand and purposeful management actions that are delivering strong results. We are benefiting from our well-timed acquisition of the remaining stake in Big River Steel which delivered 32% EBITDA margins and drove an approximately 300 basis point contribution to enterprise adjusted EBITDA margin in the quarter. A strong market and our disciplined approach to capital allocation position us well to translate earnings into cash flow.鈥

The Company will conduct a conference call on first quarter 2021 earnings on Friday, April 30, 2021 at 8:30 a.m. EDT. To listen to the webcast of the conference call, and to access the company's slide presentation, visit the U. S. Steel website, , and click on the 鈥淚nvestors鈥 section. Replays of the conference call will be available on the website after 10:30 a.m. on April 30, 2021.

UNITED STATES STEEL CORPORATION

PRELIMINARY SUPPLEMENTAL STATISTICS (Unaudited)

Three Months Ended

March 31,

2021

2020

OPERATING STATISTICS

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

Flat-Rolled

888

711

Mini Mill (b)

967

U. S. Steel Europe

748

611

U. S. Steel Europe (鈧/net ton)

620

554

Tubular

1,372

1,283

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

Flat-Rolled

2,332

2,509

Mini Mill (b)

447

U. S. Steel Europe

1,043

801

Tubular

89

187

Total Steel Shipments

3,911

3,497

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

Flat-Rolled to Tubular

92

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

216

Mini Mill (b) to Flat-Rolled

61

Raw steel production (thousands of net tons):

Flat-Rolled

2,581

3,148

Mini Mill (b)

510

U. S. Steel Europe

1,197

882

Tubular (c)

93

Raw steel capability utilization: (d)

Flat-Rolled

62

%

74

%

Mini Mill (b)

75

%

%

U. S. Steel Europe

97

%

71

%

Tubular

42

%

%

CAPITAL EXPENDITURES (dollars in millions)

Flat-Rolled

$

74

$

192

Mini Mill (b)

36

U. S. Steel Europe

14

34

Tubular

12

54

Other Businesses

2

Total

$

136

$

282

(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) Tubular segment raw steel added in October 2020 with the start-up of the new electric arc furnace.

(d) 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

March 31,

(Dollars in millions, except per share amounts)

2021

2020

NET SALES

$

3,664

$

2,748

OPERATING EXPENSES (INCOME):

Cost of sales

3,080

2,605

Selling, general and administrative expenses

96

72

Depreciation, depletion and amortization

189

160

(Earnings) loss from investees

(14

)

8

Asset impairment charges

263

Gain on equity investee transactions

(111

)

(31

)

Restructuring and other charges

6

41

Other (gains) losses, net

(7

)

5

Total operating expenses

3,239

3,123

EARNINGS (LOSS) BEFORE INTEREST AND INCOME TAXES

425

(375

)

Net interest and other financial costs

333

35

EARNINGS (LOSS) BEFORE INCOME TAXES

92

(410

)

Income tax provision (benefit)

1

(19

)

Net earnings (loss)

91

(391

)

Net earnings attributable to noncontrolling interests

NET EARNINGS (LOSS) ATTRIBUTABLE TO UNITED STATES STEEL CORPORATION

$

91

$

(391

)

COMMON STOCK DATA:

Net earnings (loss) per share attributable to

91制片厂 Corporation stockholders:

Basic

$

0.36

$

(2.30

)

Diluted

$

0.35

$

(2.30

)

Weighted average shares, in thousands

Basic

249,351

170,224

Diluted

261,969

170,224

Dividends paid per common share

$

0.01

$

0.01

UNITED STATES STEEL CORPORATION

CONDENSED CASH FLOW STATEMENT (Unaudited)

Three Months Ended

March 31,

(Dollars in millions)

2021

2020

Cash provided by (used in) operating activities:

Net earnings (loss)

$

91

$

(391

)

Depreciation, depletion and amortization

189

160

Asset impairment charges

263

Gain on equity investee transactions

(111

)

(31

)

Restructuring and other charges

6

41

Loss on debt extinguishment

255

Pensions and other postretirement benefits

(25

)

(1

)

Deferred income taxes

3

6

Working capital changes

(274

)

(162

)

Income taxes receivable/payable

3

3

Other operating activities

(26

)

(30

)

Total

111

(142

)

Cash used in investing activities:

Capital expenditures

(136

)

(282

)

Acquisition of Big River Steel, net of cash acquired

(625

)

Proceeds from sale of assets

1

Proceeds from sale of ownership interests in equity investees

8

Other investing activities

(1

)

(4

)

Total

(762

)

(277

)

Cash (used in) provided by financing activities:

Repayment of short-term debt

(180

)

Revolving credit facilities - borrowings, net of financing costs

50

1,202

Revolving credit facilities - repayments

(671

)

(281

)

Issuance of long-term debt, net of financing costs

826

67

Repayment of long-term debt

(1,379

)

(2

)

Proceeds from public offering of common stock

791

Other financing activities

(10

)

(3

)

Total

(573

)

983

Effect of exchange rate changes on cash

(12

)

(6

)

Net (decrease) increase in cash, cash equivalents and restricted cash

(1,236

)

558

Cash, cash equivalents and restricted cash at beginning of the year

2,118

939

Cash, cash equivalents and restricted cash at end of the period

$

882

$

1,497

UNITED STATES STEEL CORPORATION

CONDENSED BALANCE SHEET (Unaudited)

March 31,

December 31,

(Dollars in millions)

2021

2020

Cash and cash equivalents

$

753

$

1,985

Receivables, net

1,619

994

Inventories

1,750

1,402

Other current assets

128

51

Total current assets

4,250

4,432

Operating lease assets

210

214

Property, plant and equipment, net

7,563

5,444

Investments and long-term receivables, net

545

1,177

Intangible assets, net

539

129

Goodwill

909

4

Other noncurrent assets

673

659

Total assets

$

14,689

$

12,059

Accounts payable and other accrued liabilities

2,528

1,884

Payroll and benefits payable

285

308

Short-term debt and current maturities of long-term debt

45

192

Other current liabilities

286

272

Total current liabilities

3,144

2,656

Noncurrent operating lease liabilities

161

163

Long-term debt, less unamortized discount and debt issuance costs

5,787

4,695

Employee benefits

288

322

Other long-term liabilities

589

344

91制片厂 Corporation stockholders' equity

4,627

3,786

Noncontrolling interests

93

93

Total liabilities and stockholders' equity

$

14,689

$

12,059

UNITED STATES STEEL CORPORATION

NON-GAAP FINANCIAL MEASURES

RECONCILIATION OF ADJUSTED NET EARNINGS (LOSS)

Three Months Ended

March 31,

(Dollars in millions, except per share amounts) (a)

2021

2020

Reconciliation to adjusted net earnings (loss) attributable to 91制片厂 Corporation

Net earnings (loss) attributable to 91制片厂 Corporation

$

91

$

(391

)

Debt extinguishment

255

Big River Steel - inventory step-up amortization

24

Big River Steel - unrealized losses

9

Big River Steel - acquisition costs

9

Restructuring and other charges

6

41

Gain on previously held investment in Big River Steel

(111

)

Asset impairment charge

263

Gain on previously held investment in UPI

(25

)

Big River Steel options and forward adjustments

(11

)

Total adjustments

192

268

Adjusted net earnings (loss) attributable to 91制片厂 Corporation

$

283

(123

)

Reconciliation to adjusted diluted net earnings (loss) per share

Diluted net earnings (loss) per share

$

0.35

$

(2.30

)

Debt extinguishment

0.98

Big River Steel - inventory step-up amortization

0.09

Big River Steel - unrealized losses

0.03

Big River Steel - acquisition costs

0.03

Restructuring and other charges

0.02

0.23

Gain on previously held investment in Big River Steel

(0.42

)

Asset impairment charge

1.54

Gain on previously held investment in UPI

(0.14

)

Big River Steel options and forward adjustments

(0.06

)

Total adjustments

0.73

1.57

Adjusted diluted net earnings (loss) per share

$

1.08

$

(0.73

)

(a) The adjustments included in this table for the three months ended March 31, 2021 have not been tax effected due to the full valuation allowance on our domestic deferred tax assets. The adjustments included in this table for the three months ended March 31, 2020 have been tax effected for our European operations and not tax effected for our U.S. operations due to the full valuation allowance on our domestic deferred tax assets.

UNITED STATES STEEL CORPORATION

NON-GAAP FINANCIAL MEASURES

RECONCILIATION OF ADJUSTED EBITDA

Three Months Ended

March 31,

(Dollars in millions)

2021

2020

Reconciliation to Adjusted EBITDA

Net earnings (loss) attributable to 91制片厂 Corporation

$

91

$

(391

)

Income tax provision (benefit)

1

(19

)

Net interest and other financial costs

333

35

Depreciation, depletion and amortization expense

189

160

EBITDA

614

(215

)

Big River Steel - inventory step-up amortization

24

Big River Steel - unrealized losses

9

Big River Steel - acquisition costs

9

Restructuring and other charges

6

41

Gain on previously held investment in Big River Steel

(111

)

Asset impairment charge

263

Gain on previously held investment in UPI

(25

)

Adjusted EBITDA

$

551

$

64

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 effects of items that include: debt extinguishment, Big River Steel - inventory step-up amortization, Big River Steel - unrealized losses, Big River Steel - acquisition costs, restructuring and other charges, gain on previously held investment in Big River Steel, asset impairment charge, gain on previously held investment in UPI and Big River Steel options and forward adjustments (Adjustment Items). Adjusted EBITDA is also a non-GAAP measure that excludes the effects of certain 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 effects of events 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鈥檚 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鈥檚 view and assessment of the Company鈥檚 ongoing operating performance, because management does not consider the adjusting items when evaluating the Company鈥檚 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 鈥渇orward-looking statements鈥 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 鈥渂elieve,鈥 鈥渆xpect,鈥 鈥渋ntend,鈥 鈥渆stimate,鈥 鈥渁nticipate,鈥 鈥減roject,鈥 鈥渢arget,鈥 鈥渇orecast,鈥 鈥渁im,鈥 鈥渟hould,鈥 鈥渨ill,鈥 "may" 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, 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, the integration of Big River Steel in our existing business, business strategies related to the combined business 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鈥檚 beliefs regarding future events, many of which, by their nature, are inherently uncertain and outside of the Company鈥檚 control. It is possible that the Company鈥檚 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 this report and in 鈥淚tem 1A. Risk Factors鈥 in our Annual Report on Form 10-K for the year ended December 31, 2020, our Quarterly Reports on Form 10-Q 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 91制片厂 Corporation and its consolidated subsidiaries and references to 鈥淏ig River Steel鈥 refer to Big River Steel Holdings LLC and its direct and indirect subsidiaries unless otherwise indicated by the context.

###

Founded in 1901, the 91制片厂 Corporation is a Fortune 250 company and a leading steel producer. Together with its subsidiary Big River Steel and an unwavering focus on safety, the company鈥檚 customer-centric Best of BothSM world-competitive integrated and mini mill technology 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鈥檚 proprietary XG3鈩 advanced high-strength steel. The company also maintains competitively advantaged iron ore production and has an annual raw steelmaking capability of 26.2 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 .

John Ambler
Vice President
Corporate Communications
T - (412) 433-2407
E - joambler@uss.com

Kevin Lewis
Vice President
Investor Relations
T - (412) 433-6935
E - klewis@uss.com

Source: 91制片厂 Corporation