• Net loss of $(84) million, or $(0.49) per diluted share
  • Adjusted net loss of $(35) million, or $(0.21) per diluted share
  • Adjusted EBITDA of $144 million

PITTSBURGH, Oct. 31, 2019 (GLOBE NEWSWIRE) -- United States Steel Corporation (NYSE: X) reported third quarter 2019 net loss of $(84) million, or $(0.49) per diluted share.  Adjusted net loss was $(35) million, or $(0.21) per diluted share.  This compares to third quarter 2018 net earnings of $291 million, or $1.62 per diluted share.  Adjusted net earnings for third quarter 2018 were $321 million, or $1.79 per diluted share.
           

Earnings Highlights
 
 Quarter Ended Nine Months
Ended
 September 30, September 30,
(Dollars in millions, except per share amounts)2019 2018 2019 2018
Net Sales$3,069  $3,729  $10,113  $10,487 
Segment (loss) earnings before interest and income taxes       
Flat-Rolled$46  $305  $275  $562 
U. S. Steel Europe(46) 72  (27) 297 
Tubular(25) 7  (21) (55)
Other Businesses8  16  26  44 
Total segment (loss) earnings before interest and income taxes$(17) $400  $253  $848 
Other items not allocated to segments(63) (27) (107) (37)
(Loss) earnings before interest and income taxes$(80) $373  $146  $811 
Net interest and other financial costs48  59  151  252 
Income tax (benefit) provision(44) 23  (43) 36 
Net (loss) earnings$(84) $291  $38  $523 
(Loss) earnings per diluted share$(0.49) $1.62  $0.22  $2.92 
        
Adjusted net (loss) earnings (a)$(35) $321  $124  $640 
Adjusted net (loss) earnings per diluted share (a)$(0.21) $1.79  $0.71  $3.58 
Adjusted earnings before interest, income taxes, depreciation and amortization (EBITDA) (a)$144  $526  $707  $1,232 

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

"The team delivered better than expected results from solid cost performance and higher than forecasted shipments in Flat-Rolled.   While market headwinds persist, we continue to focus on what we can control, including re-scoping our asset revitalization investments and reducing fixed costs," commented President and Chief Executive Officer David B. Burritt.  "We also completed three financing activities since the quarter ended, which delivered approximately $1.1 billion of incremental capital to further support our strategy."

Burritt added, “We are using today's market environment as a catalyst to improve our business model with  our 'best of both' strategy.  Our investment in Big River Steel is strategic priority number one and we are already purposefully re-prioritizing our uses of cash towards investments most closely aligned with the business we are becoming.  We will be flexible managing the pace of our strategic investments to ensure we demonstrate the resiliency required to achieve the cost and capability differentiation of our world competitive strategy."

The Company will conduct a conference call on third quarter 2019 earnings on Friday, November 1, at 8:30 a.m. Eastern Daylight Time.  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 November 1.

 UNITED STATES STEEL CORPORATION
 PRELIMINARY SUPPLEMENTAL STATISTICS (Unaudited)
         
  Quarter Ended Nine Months Ended
  September 30, September 30,
  2019 2018 2019 2018
OPERATING STATISTICS       
Average realized price: ($/net ton unless otherwise noted)(a)       
 Flat-Rolled732  859  771  807 
 U. S. Steel Europe656  669  660  695 
 U. S. Steel Europe (€/net ton)590  575  587  582 
 Tubular1,417  1,602  1,501  1,477 
Steel shipments (thousands of net tons):(a)       
 Flat-Rolled2,654  2,659  8,183  7,777 
 U. S. Steel Europe765  1,101  2,833  3,384 
 Tubular174  184  576  564 
 Total Steel Shipments3,593  3,944  11,592  11,725 
         
Intersegment steel (unless otherwise noted) shipments (thousands of net tons):       
 Flat-Rolled to Tubular79  26  212  158 
 Flat-Rolled to U. S. Steel Europe (iron ore pellets and fines)235    424   
 U. S. Steel Europe to Flat-Rolled      22 
Raw steel production (thousands of net tons):       
 Flat-Rolled2,783  2,933  8,842  8,558 
 U. S. Steel Europe823  1,210  3,130  3,810 
Raw steel capability utilization:(b)       
 Flat-Rolled65% 68% 70% 67%
 U. S. Steel Europe65% 96% 84% 102%
         
CAPITAL EXPENDITURES (dollars in millions)       
Flat-Rolled$263  $213  $764  $531 
U. S. Steel Europe36  25  111  63 
Tubular49  9  97  33 
Other Businesses2  18  6  19 
 Total$350  $265  $978  $646 

(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 Nine Months Ended
  September 30, September 30,
(Dollars in millions, except per share amounts)2019 2018 2019 2018
NET SALES $3,069  $3,729  $10,113  $10,487 
         
Operating expenses (income):        
Cost of sales (excludes items shown below) 2,902  3,172  9,301  9,101 
Selling, general and administrative expenses 63  81  223  251 
Depreciation, depletion and amortization 161  126  454  384 
Earnings from investees (31) (17) (68) (39)
Gain on equity investee transactions       (18)
Restructuring charges 54    54   
Net (gain) loss on disposal of assets (1) (5) 3  (3)
Other expenses (income), net 1  (1)    
Total operating expenses 3,149  3,356  9,967  9,676 
         
(LOSS) EARNINGS BEFORE INTEREST AND INCOME TAXES (80) 373  146  811 
Net interest and other financial costs 48  59  151  252 
         
(LOSS) EARNINGS BEFORE INCOME TAXES (128) 314  (5) 559 
Income tax (benefit) provision (44) 23  (43) 36 
         
Net (loss) earnings (84) 291  38  523 
Less: Net earnings (loss) attributable to noncontrolling interests        
NET (LOSS) EARNINGS ATTRIBUTABLE TO UNITED STATES STEEL CORPORATION $(84) $291  $38  $523 
         
COMMON STOCK DATA:        
Net earnings per share attributable to        
United States Steel Corporation stockholders:        
Basic $(0.49) $1.64  $0.22  $2.96 
Diluted $(0.49) $1.62  $0.22  $2.92 
Weighted average shares, in thousands        
Basic 170,801  177,250  171,882  176,815 
Diluted 170,801  179,126  172,511  178,734 
Dividends paid per common share $0.05  $0.05  $0.15  $0.15 


UNITED STATES STEEL CORPORATION
CONDENSED CASH FLOW STATEMENT (Unaudited)
       
    Nine Months Ended
    September 30,
(Dollars in millions) 2019 2018
Cash provided by (used in) operating activities:   
 Net earnings $38  $523 
 Depreciation, depletion and amortization454  384 
 Gain on equity investee transactions  (18)
 Restructuring charges54   
 Loss on debt extinguishment  77 
 Pensions and other postretirement benefits76  57 
 Deferred income taxes(38) 1 
 Net loss (gain) on disposal of assets3  (3)
 Working capital changes(120) (300)
 Income taxes receivable/payable27  53 
 Other operating activities(98) (52)
  Total 396  722 
       
Cash used in investing activities:   
 Capital expenditures (978) (646)
 Disposal of assets 4  10 
 Other investing activities   (1)
  Total (974) (637)
       
Cash provided by (used in) financing activities:   
 Revolving and other credit facilities - borrowings, net165   
 Issuance of long-term debt, net of financing costs   640 
 Repayment of long-term debt (4) (922)
 Common stock repurchased (88)  
 Dividends paid (26) (27)
 Receipt from exercise of stock options   34 
 Taxes paid for equity compensation plans (7) (9)
  Total 40  (284)
       
Effect of exchange rate changes on cash(6) (13)
       
Net decrease in cash, cash equivalents and restricted cash(544) (212)
Cash, cash equivalents and restricted cash at beginning of the year1,040  1,597 
       
Cash, cash equivalents and restricted cash at end of the period$496  $1,385 


UNITED STATES STEEL CORPORATION
CONDENSED BALANCE SHEET (Unaudited)
      
   Sept. 30, Dec. 31,
(Dollars in millions) 2019 2018
Cash and cash equivalents$476  $1,000 
Receivables, net1,400  1,659 
Inventories2,071  2,092 
Other current assets95  79 
 Total current assets4,042  4,830 
Operating lease assets239   
Property, plant and equipment, net5,310  4,865 
Investments and long-term receivables, net576  513 
Intangible assets, net152  158 
Deferred income tax benefits460  445 
Other noncurrent assets138  171 
      
 Total assets $10,917  $10,982 
      
Accounts payable and other accrued liabilities2,249  2,535 
Payroll and benefits payable345  440 
Short-term debt and current maturities of long-term debt67  65 
Other current liabilities189  157 
 Total current liabilities2,850  3,197 
Noncurrent operating lease liabilities189   
Long-term debt, less unamortized discount and debt issuance costs2,500  2,316 
Employee benefits905  980 
Other long-term liabilities273  286 
United States Steel Corporation stockholders' equity4,199  4,202 
Noncontrolling interests1  1 
      
 Total liabilities and stockholders' equity$10,917  $10,982 


UNITED STATES STEEL CORPORATION
NON-GAAP FINANCIAL MEASURES
RECONCILIATION OF ADJUSTED EBITDA
         
  Quarter Ended Nine Months Ended
  September 30, September 30,
(Dollars in millions)2019 2018 2019 2018
Reconciliation to Adjusted EBITDA       
 Net (loss) earnings attributable to United States Steel Corporation$(84) $291  $38  $523 
 Income tax (benefit) provision(44) 23  (43) 36 
 Net interest and other financial costs48  59  151  252 
 Depreciation, depletion and amortization expense161  126  454  384 
 EBITDA81  499  600  1,195 
 December 24, 2018 Clairton coke making facility fire9    53   
 Restructuring charges54    54   
 Gain on equity investee transactions      (18)
 Granite City Works restart costs  27    63 
 Granite City Works adjustment to temporary idling charges      (8)
 Adjusted EBITDA$144  $526  $707  $1,232 


UNITED STATES STEEL CORPORATION
NON-GAAP FINANCIAL MEASURES
RECONCILIATION OF ADJUSTED NET (LOSS) EARNINGS
         
  Quarter Ended Nine Months Ended
  September 30, September 30,
(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$(84) $291  $38  $523 
 December 24, 2018 Clairton coke making facility fire7    44   
 Restructuring charges42    42   
 Gain on equity investee transactions      (18)
 Granite City Works restart costs  27    63 
 Granite City Works adjustment to temporary idling charges      (8)
 Loss on debt extinguishment and other related costs  3    80 
   Total adjustments49  30  86  117 
 Adjusted net (loss) earnings attributable to United States Steel Corporation$(35) $321  $124  $640 
         
Reconciliation to adjusted diluted net (loss) earnings per share       
 Diluted net (loss) earnings per share$(0.49) $1.62  $0.22  $2.92 
 December 24, 2018 Clairton coke making facility fire0.04    0.25   
 Restructuring charges0.24    0.24   
 Gain on equity investee transactions      (0.10)
 Granite City Works restart costs  0.15    0.35 
 Granite City Works adjustment to temporary idling charges      (0.04)
 Loss on debt extinguishment and other related costs  0.02    0.45 
   Total adjustments0.28  0.17  0.49  0.66 
 Adjusted diluted net (loss) earnings per share$(0.21) $1.79  $0.71  $3.58 
(a) The adjustments included in this table for the three and nine months ended September 30, 2019 have been tax effected.  The adjustments for the three and nine months ended September 30, 2018 have not been tax effected due to the full valuation allowance on our domestic deferred tax assets in 2018.

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 the December 24, 2018 Clairton coke making facility fire, restructuring, the effects of gains on equity investee transactions, facility restart costs, significant temporary idling charges and adjustments to those charges and debt extinguishment and other related costs 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:

Media
Amanda Malkowski
Analyst
Corporate Communications
T - (412) 433-2512
E - almalkowski@uss.com

Investors/Analysts
Kevin Lewis
General Manager
Investor Relations
T - (412) 433-6935
E - KLewis@uss.com