- Net loss of $589 million, or $3.36 per diluted share
- Adjusted net loss of $469 million, or $2.67 per diluted share
- Adjusted EBITDA loss of $264 million
- Liquidity of $2.652 billion, including cash of $2.300 billion
United States Steel Corporation (NYSE:X) reported second quarter 2020 net loss of $589 million, or $3.36 per diluted share. Adjusted net loss was $469 million, or $2.67 per diluted share. This compares to second quarter 2019 net earnings of $68 million, or $0.39 per diluted share. Adjusted net earnings for second quarter 2019 were $78 million, or $0.45 per diluted share.
| Earnings Highlights | |||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||
| June 30, | June 30, | ||||||||||||
| (Dollars in millions, except per share amounts) | 2020 | 2019 | 2020 | 2019 | |||||||||
| Net Sales | $ | 2,091 | $ | 3,545 | $ | 4,839 | $ | 7,044 | |||||
| Segment (loss) earnings before interest and income taxes | |||||||||||||
| Flat-Rolled | $ | (329) | $ | 134 | $ | (364) | $ | 229 | |||||
| U. S. Steel Europe | (26) | (10) | (40) | 19 | |||||||||
| Tubular | (47) | (6) | (95) | 4 | |||||||||
| Other Businesses | (21) | 10 | (20) | 18 | |||||||||
| Total segment (loss) earnings before interest and income taxes | $ | (423) | $ | 128 | $ | (519) | $ | 270 | |||||
| Other items not allocated to segments | (109) | (13) | (388) | (44) | |||||||||
| (Loss) earnings before interest and income taxes | $ | (532) | $ | 115 | $ | (907) | $ | 226 | |||||
| Net interest and other financial costs | 62 | 54 | 97 | 103 | |||||||||
| Income tax (benefit) provision | (5) | (7) | (24) | 1 | |||||||||
| Net (loss) earnings | $ | (589) | $ | 68 | $ | (980) | $ | 122 | |||||
| (Loss) earnings per diluted share | $ | (3.36) | $ | 0.39 | $ | (5.67) | $ | 0.70 | |||||
| Adjusted net (loss) earnings (a) | $ | (469) | 78 | $ | (592) | 159 | |||||||
| Adjusted net (loss) earnings per diluted share (a) | $ | (2.67) | $ | 0.45 | $ | (3.43) | $ | 0.92 | |||||
| Adjusted (loss) earnings before interest, income taxes, depreciation and amortization (EBITDA) (a) | $ | (264) | 278 | $ | (200) | 563 | |||||||
| (a) Please refer to the non-GAAP Financial Measures section of this document for the reconciliation of these amounts. |
“Protecting lives and livelihoods remains our top priority,” said U. S. Steel President and Chief Executive Officer David B. Burritt. “We remain vigilant and continue to actively enforce our COVID-19 protocols, including working from home, where applicable, promoting physical distancing, limiting visitors to our sites, and continuing our enhanced cleaning activities. As a result of this intense focus, COVID-19 cases among our workforce remains significantly better than the general U.S. population.”
Burritt continued, “We are encouraged by the recovery in market conditions as automotive original equipment manufacturers (OEMs) are nearing normalized production levels and healthy order activity has continued into the third quarter. Construction demand is exceeding our expectations and is expected to remain robust, particularly for value-add construction products. To ensure we continue to serve our customers, we restarted two blast furnaces to quickly respond to increasing activity and plan to restart an additional furnace at Gary Works on August 1. In Europe, demand is beginning to recover, in-line with the re-opening of the European continent.”
Commenting on the quarter, Burritt said, “We exceeded our second quarter guidance as North American Flat-rolled segment shipments meaningfully accelerated in the second half of June, resulting in better than expected production efficiencies and cost benefits across our mines and steel plants. Still, second quarter performance was impacted by COVID-19 and the nonrecurring costs associated with a significant portion of our steelmaking operations being idled in the quarter. We are encouraged by the accelerating pace of incoming orders across our steelmaking and sheet finishing facilities. While a portion of operating inefficiencies will continue to impact third quarter performance, we are confident that the second quarter was the trough for the year.”
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The Company will conduct a conference call on second quarter 2020 earnings on Friday, July 31, at 8:30 a.m. Eastern Daylight. 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 July 31.