United States Steel Corporation Reports Record Second Quarter 2022 Results
Announcing a new $500 million stock buyback authorization
PITTSBURGH, July 28, 2022–(BUSINESS WIRE)–United States Steel Corporation (NYSE: X) reported second quarter 2022 net earnings of $978 million, or $3.42 per diluted share. Adjusted net earnings was $1,104 million, or $3.86 per diluted share. This compares to second quarter 2021 net earnings of $1,012 million, or $3.53 per diluted share. Adjusted net earnings for the second quarter 2021 was $1,050 million, or $3.67 per diluted share.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220728005812/en/
United States Steel Corporation Reports Record Second Quarter 2022 Results (Graphic: Business Wire)
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Earnings Highlights |
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|
|
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||
|
(Dollars in millions, except per share amounts) |
2022 |
2021 |
2022 |
2021 |
||||||||
|
Net Sales |
$ |
6,290 |
|
$ |
5,025 |
|
$ |
11,524 |
|
$ |
8,689 |
|
|
Segment earnings (loss) before interest and income taxes |
|
|
|
|
||||||||
|
Flat-Rolled |
|
777 |
|
|
579 |
|
|
1,290 |
|
|
725 |
|
|
Mini Mill (a) |
|
270 |
|
|
284 |
|
|
548 |
|
|
416 |
|
|
U. S. Steel Europe |
|
280 |
|
|
207 |
|
|
544 |
|
|
312 |
|
|
Tubular |
|
107 |
|
|
— |
|
|
184 |
|
|
(29 |
) |
|
Other |
|
(12 |
) |
|
14 |
|
|
(5 |
) |
|
22 |
|
|
Total segment earnings before interest and income taxes |
$ |
1,422 |
|
$ |
1,084 |
|
$ |
2,561 |
|
$ |
1,446 |
|
|
Other items not allocated to segments |
|
(168 |
) |
|
(50 |
) |
|
(189 |
) |
|
13 |
|
|
Earnings before interest and income taxes |
$ |
1,254 |
|
$ |
1,034 |
|
$ |
2,372 |
|
$ |
1,459 |
|
|
Net interest and other financial costs |
|
(8 |
) |
|
59 |
|
|
(18 |
) |
|
392 |
|
|
Income tax expense |
|
284 |
|
|
(37 |
) |
|
530 |
|
|
(36 |
) |
|
Net earnings |
$ |
978 |
|
$ |
1,012 |
|
$ |
1,860 |
|
$ |
1,103 |
|
|
Earnings per diluted share |
$ |
3.42 |
|
$ |
3.53 |
|
$ |
6.45 |
|
$ |
4.02 |
|
|
|
|
|
|
|
||||||||
|
Adjusted net earnings (b) |
$ |
1,104 |
|
$ |
1,050 |
|
$ |
2,002 |
|
$ |
1,332 |
|
|
Adjusted net earnings per diluted share (b) |
$ |
3.86 |
|
$ |
3.67 |
|
$ |
6.95 |
|
$ |
4.85 |
|
|
Adjusted earnings before interest, income taxes, depreciation and amortization (EBITDA) (b) |
$ |
1,620 |
|
$ |
1,286 |
|
$ |
2,957 |
|
$ |
1,837 |
|
|
(a) Mini Mill segment added after January 15, 2021 with the purchase of the remaining equity interest in Big River Steel. |
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(b) Please refer to the non-GAAP Financial Measures section of this document for the reconciliation of these amounts. |
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« Our record-best second quarter was driven by strong performance across our diverse operating segments, » commented U. S. Steel President and Chief Executive Officer David B. Burritt. « As we continue to demonstrate the execution of our strategy, it is timely to reflect upon just how much progress we’ve made over the past twelve months, exhibiting continued record safety performance, generating nearly $6.7 billion of adjusted EBITDA and over $4 billion of free cash flow, building over $3 billion of cash, and returning nearly $850 million to stockholders, including July’s buyback activity. »
Burritt continued, « The bold decisions we have made to invest in our competitive advantages make us a stronger business that creates enduring value for our stockholders through the cycle. The well-timed acquisition of Big River Steel created a best-in-class sustainable Mini Mill segment representing nearly 30% of U. S. Steel’s domestic flat-rolled steel EBITDA over the past twelve months. We invested in state-of-the-art electric arc furnace steelmaking through challenging energy dynamics and our Tubular segment is now profitably serving the resurging oil and gas markets. Our revitalized integrated operations are benefiting from our diverse end-market exposure and value-focused commercial strategy that leverages our deep customer relationships and lowest-cost iron ore capabilities to produce profitable steel solutions. In Europe, our Slovakian operations are navigating challenging conditions and continuing to implement resiliency plans and cost mitigation actions in the event of continued economic slowdown in the region. »
Commenting on the Company’s outlook, Burritt concluded, « We are bullish on U. S. Steel’s future and confident in our ability to execute our Best for All® strategy. While some consumer-oriented markets like automotive and appliance are softer, line pipe and energy demand is accelerating. We have demonstrated a commitment to achieving and maintaining a strong balance sheet, a supportive debt maturity profile, and a balanced approach to capital allocation. We’ve completed our $800 million stock buyback authorization and are pleased to announce a new $500 million stock buyback authorization today. We are a ‘show me’ story, which gives us the opportunity to continue to consider our stock as an attractive investment. Through passion and perseverance, we look forward to demonstrating the power of our strategy and the improvement in the value of our company. »
Capital Allocation Update:
During the second quarter 2022, the Company repurchased $400 million of its common stock. Third quarter 2022 to date, the Company has repurchased $127 million, exhausting the remaining portion of the $500 million share repurchase program announced in January 2022. The Board of Directors has authorized a new $500 million share repurchase program to commence in the third quarter 2022 under which the Company’s outstanding common stock may be repurchased from time to time at the discretion of management.
*****
The Company will conduct a conference call on the second quarter 2022 earnings on Friday, July 29, 2022, at 8:30 a.m. Eastern. To listen to the webcast of the conference call and to access the Company’s slide presentation, visit the U. S. Steel website, www.ussteel.com, and click on the « Investors » section. Replay will be available on the website after 10:30 a.m. on July 29, 2022.
|
UNITED STATES STEEL CORPORATION |
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PRELIMINARY SUPPLEMENTAL STATISTICS (Unaudited) |
|||||||||||||
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||
|
|
2022 |
2021 |
|
2022 |
2021 |
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OPERATING STATISTICS |
|
|
|
|
|
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|
Average realized price: ($/net ton unless otherwise noted) (a) |
|
|
|
|
|
||||||||
|
Flat-Rolled |
|
1,339 |
|
|
1,078 |
|
|
|
1,352 |
|
|
983 |
|
|
Mini Mill (b) |
|
1,331 |
|
|
1,207 |
|
|
|
1,349 |
|
|
1,106 |
|
|
U. S. Steel Europe |
|
1,217 |
|
|
905 |
|
|
|
1,162 |
|
|
831 |
|
|
U. S. Steel Europe (€/net ton) |
|
1,142 |
|
|
750 |
|
|
|
1,064 |
|
|
689 |
|
|
Tubular |
|
2,727 |
|
|
1,633 |
|
|
|
2,543 |
|
|
1,513 |
|
|
|
|
|
|
|
|
||||||||
|
Steel shipments (thousands of net tons): (a) |
|
|
|
|
|
||||||||
|
Flat-Rolled |
|
2,365 |
|
|
2,326 |
|
|
|
4,312 |
|
|
4,658 |
|
|
Mini Mill (b) |
|
615 |
|
|
616 |
|
|
|
1,122 |
|
|
1,063 |
|
|
U. S. Steel Europe |
|
1,067 |
|
|
1,167 |
|
|
|
2,177 |
|
|
2,210 |
|
|
Tubular |
|
136 |
|
|
105 |
|
|
|
264 |
|
|
194 |
|
|
Total Steel Shipments |
|
4,183 |
|
|
4,214 |
|
|
|
7,875 |
|
|
8,125 |
|
|
|
|
|
|
|
|
||||||||
|
Intersegment steel (unless otherwise noted) shipments (thousands of net tons): |
|
|
|
|
|
||||||||
|
Flat-Rolled to USSE (iron ore pellets and fines) |
|
82 |
|
|
223 |
|
|
|
82 |
|
|
439 |
|
|
Flat-Rolled to Mini Mill |
|
23 |
|
|
— |
|
|
|
23 |
|
|
— |
|
|
Mini Mill (b) to Flat-Rolled |
|
110 |
|
|
125 |
|
|
|
199 |
|
|
186 |
|
|
|
|
|
|
|
|
||||||||
|
Raw steel production (thousands of net tons): |
|
|
|
|
|
||||||||
|
Flat-Rolled |
|
2,424 |
|
|
2,485 |
|
|
|
4,629 |
|
|
5,066 |
|
|
Mini Mill (b) |
|
750 |
|
|
747 |
|
|
|
1,351 |
|
|
1,257 |
|
|
U. S. Steel Europe |
|
1,216 |
|
|
1,279 |
|
|
|
2,304 |
|
|
2,476 |
|
|
Tubular |
|
168 |
|
|
114 |
|
|
|
324 |
|
|
207 |
|
|
|
|
|
|
|
|
||||||||
|
Raw steel capability utilization: (c) |
|
|
|
|
|
||||||||
|
Flat-Rolled |
|
74 |
% |
|
59 |
% |
|
|
71 |
% |
|
60 |
% |
|
Mini Mill (b) |
|
91 |
% |
|
91 |
% |
|
|
83 |
% |
|
84 |
% |
|
U. S. Steel Europe |
|
98 |
% |
|
103 |
% |
|
|
93 |
% |
|
100 |
% |
|
Tubular |
|
75 |
% |
|
51 |
% |
|
|
73 |
% |
|
46 |
% |
|
|
|
|
|
|
|
||||||||
|
CAPITAL EXPENDITURES (dollars in millions) |
|
|
|
|
|
||||||||
|
Flat-Rolled |
|
112 |
|
|
93 |
|
|
|
229 |
|
|
167 |
|
|
Mini Mill (b) |
|
179 |
|
|
20 |
|
|
|
390 |
|
|
56 |
|
|
U. S. Steel Europe |
|
17 |
|
|
12 |
|
|
|
34 |
|
|
26 |
|
|
Tubular |
|
3 |
|
|
22 |
|
|
|
7 |
|
|
34 |
|
|
Other Businesses |
|
— |
|
|
1 |
|
|
|
— |
|
|
1 |
|
|
Total |
$ |
311 |
|
$ |
148 |
|
|
$ |
660 |
|
$ |
284 |
|
|
(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) 2022 based on annual raw steel production capability of 13.2 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. 2021 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. |
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|
UNITED STATES STEEL CORPORATION |
|||||||||||||
|
CONDENSED STATEMENT OF OPERATIONS (Unaudited) |
|||||||||||||
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||
|
(Dollars in millions, except per share amounts) |
2022 |
2021 |
|
2022 |
2021 |
||||||||
|
Net Sales |
$ |
6,290 |
|
$ |
5,025 |
|
|
$ |
11,524 |
|
$ |
8,689 |
|
|
|
|
|
|
|
|
||||||||
|
Operating expenses (income): |
|
|
|
|
|
||||||||
|
Cost of sales |
|
4,661 |
|
|
3,678 |
|
|
|
8,484 |
|
|
6,752 |
|
|
Selling, general and administrative expenses |
|
112 |
|
|
106 |
|
|
|
229 |
|
|
208 |
|
|
Depreciation, depletion and amortization |
|
198 |
|
|
202 |
|
|
|
396 |
|
|
391 |
|
|
Earnings from investees |
|
(95 |
) |
|
(35 |
) |
|
|
(131 |
) |
|
(49 |
) |
|
Asset impairment charges |
|
151 |
|
|
28 |
|
|
|
157 |
|
|
28 |
|
|
Gain on equity investee transactions |
|
— |
|
|
— |
|
|
|
— |
|
|
(111 |
) |
|
Restructuring and other charges |
|
17 |
|
|
31 |
|
|
|
34 |
|
|
37 |
|
|
Net gains on sale of assets |
|
(2 |
) |
|
(15 |
) |
|
|
(4 |
) |
|
(15 |
) |
|
Other gains, net |
|
(6 |
) |
|
(4 |
) |
|
|
(13 |
) |
|
(11 |
) |
|
Total operating expenses |
|
5,036 |
|
|
3,991 |
|
|
|
9,152 |
|
|
7,230 |
|
|
|
|
|
|
|
|
||||||||
|
Earnings before interest and income taxes |
|
1,254 |
|
|
1,034 |
|
|
|
2,372 |
|
|
1,459 |
|
|
Net interest and other financial (benefits) costs |
|
(8 |
) |
|
59 |
|
|
|
(18 |
) |
|
392 |
|
|
|
|
|
|
|
|
||||||||
|
Earnings before income taxes |
|
1,262 |
|
|
975 |
|
|
|
2,390 |
|
|
1,067 |
|
|
Income tax expense (benefit) |
|
284 |
|
|
(37 |
) |
|
|
530 |
|
|
(36 |
) |
|
|
|
|
|
|
|
||||||||
|
Net earnings |
|
978 |
|
|
1,012 |
|
|
|
1,860 |
|
|
1,103 |
|
|
Less: Net earnings attributable to noncontrolling interests |
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
Net earnings attributable to United States Steel Corporation |
$ |
978 |
|
$ |
1,012 |
|
|
$ |
1,860 |
|
$ |
1,103 |
|
|
|
|
|
|
|
|
||||||||
|
COMMON STOCK DATA: |
|
|
|
|
|
||||||||
|
Net earnings per share attributable to United States Steel Corporation Stockholders |
|
|
|
|
|
||||||||
|
Basic |
$ |
3.80 |
|
$ |
3.75 |
|
|
$ |
7.17 |
|
$ |
4.25 |
|
|
Diluted |
$ |
3.42 |
|
$ |
3.53 |
|
|
$ |
6.45 |
|
$ |
4.02 |
|
|
Weighted average shares, in thousands |
|
|
|
|
|
||||||||
|
Basic |
|
257,267 |
|
|
269,872 |
|
|
|
259,348 |
|
|
259,668 |
|
|
Diluted |
|
286,680 |
|
|
286,337 |
|
|
|
289,246 |
|
|
274,512 |
|
|
Dividends paid per common share |
$ |
0.05 |
|
$ |
0.01 |
|
|
$ |
0.10 |
|
$ |
0.02 |
|
|
UNITED STATES STEEL CORPORATION |
|||||||
|
CONDENSED CASH FLOW STATEMENT (Unaudited) |
|||||||
|
|
Six Months Ended June 30, |
||||||
|
(Dollars in millions) |
2022 |
|
2021 |
||||
|
Increase (decrease) in cash, cash equivalents and restricted cash |
|||||||
|
Operating activities: |
|
|
|
||||
|
Net earnings |
$ |
1,860 |
|
|
$ |
1,103 |
|
|
Depreciation, depletion and amortization |
|
396 |
|
|
|
391 |
|
|
Asset impairment charges |
|
157 |
|
|
|
28 |
|
|
Gain on equity investee transactions |
|
— |
|
|
|
(111 |
) |
|
Restructuring and other charges |
|
34 |
|
|
|
37 |
|
|
Loss on debt extinguishment |
|
2 |
|
|
|
256 |
|
|
Pensions and other postretirement benefits |
|
(106 |
) |
|
|
(46 |
) |
|
Deferred income taxes |
|
247 |
|
|
|
(77 |
) |
|
Working capital changes |
|
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