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榴莲视频 Reports Second Quarter 2021 Results

  • Net earnings of $1,012 million, or $3.53 per diluted share
  • Adjusted net earnings of $964 million, or $3.37 per diluted share
  • Adjusted EBITDA of $1,286 million
  • Liquidity of $4.176 billion, including cash of $1.329 billion

PITTSBURGH--(BUSINESS WIRE)-- 榴莲视频 (NYSE: X) reported second quarter 2021 net earnings of $1,012 million, or $3.53 per diluted share. Adjusted net earnings was $964 million, or $3.37 per diluted share. This compares to second quarter 2020 net loss of $589 million, or $3.36 per diluted share. Adjusted net loss for second quarter 2020 was $469 million, or $2.67 per diluted share.

Earnings Highlights

Three Months Ended

Six Months Ended

June 30,

June 30,

(Dollars in millions, except per share amounts)

2021

2020

2021

2020

Net Sales

$

5,025

$

2,091

$

8,689

$

4,839

Segment earnings (loss) before interest and income taxes

Flat-Rolled

$

579

$

(329

)

$

725

$

(364

)

Mini Mill (a)

284

416

U. S. Steel Europe

207

(26

)

312

(40

)

Tubular (b)

(47

)

(29

)

(95

)

Other

14

(21

)

22

(20

)

Total segment earnings (loss) before interest and income taxes

$

1,084

$

(423

)

$

1,446

$

(519

)

Other items not allocated to segments

(50

)

(109

)

13

(388

)

Earnings (loss) before interest and income taxes

$

1,034

$

(532

)

$

1,459

$

(907

)

Net interest and other financial costs

59

62

392

97

Income tax benefit

(37

)

(5

)

(36

)

(24

)

Net earnings (loss)

$

1,012

$

(589

)

$

1,103

$

(980

)

Earnings (loss) per diluted share

$

3.53

$

(3.36

)

$

4.02

$

(5.67

)

Adjusted net earnings (loss) (c)

$

964

(469

)

$

1,247

(592

)

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

$

3.37

$

(2.67

)

$

4.54

$

(3.43

)

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

$

1,286

(264

)

$

1,837

(200

)

(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.

鈥淭he second quarter was an exceptional quarter for U. S. Steel,鈥 said U. S. Steel President and Chief Executive Officer David B. Burritt. 鈥淭he enterprise delivered record adjusted EBITDA margins, highlighting the power of a combined integrated and mini mill footprint. Our financial strength gives us the confidence to announce up to $1 billion of additional debt reduction over the next 12 months. This is in addition to the $2.2 billion of debt reduction we鈥檝e already committed to or delivered to date.鈥

Commenting on U. S. Steel's strategy, Burritt continued, "Our mission is to provide customers with profitable steel solutions that benefit people and planet. Our Best of Both鈩 business model creates the platform to transition to Best for All鈩 so that we can contribute to a more sustainable future for all our stakeholders. We recently announced an investment in a state-of-the-art non-grain oriented (NGO) electrical steel line that will further Big River Steel鈥檚 industry-leading position. This investment allows us to partner with auto OEMs on their own decarbonization goals. We also divested our Transtar rail assets to support our transition to a Best for All strategy.鈥

Burritt concluded, 鈥淲e are bullish that today's strong market environment can continue. Our business is firing on all cylinders; our balance sheet has been enhanced, and our pension and OPEB plans are fully funded. We are capitalizing on today鈥檚 supportive market to get to our future faster. Our customers are the driving force behind our Best for All ambitions, and we thank our employees for safely delivering record quality and reliability performance for them. We look forward to setting new records in the third quarter and expect to achieve all-time best adjusted EBITDA for the quarter.鈥

The Company will conduct a conference call on second quarter 2021 earnings on Friday, July 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 鈥淚nvestors鈥 then "Events & Presentations." Replays of the conference call will be available on the website after 10:30 a.m. on July 30, 2021.

UNITED STATES STEEL CORPORATION

PRELIMINARY SUPPLEMENTAL STATISTICS (Unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

2021

2020

2021

2020

OPERATING STATISTICS

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

Flat-Rolled

1,078

721

983

715

Mini Mill (b)

1,207

1,106

U. S. Steel Europe

905

632

831

620

U. S. Steel Europe (鈧/net ton)

750

575

689

563

Tubular

1,633

1,288

1,513

1,285

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

Flat-Rolled

2,326

1,790

4,658

4,299

Mini Mill (b)

616

1,063

U. S. Steel Europe

1,167

610

2,210

1,411

Tubular

105

132

194

319

Total Steel Shipments

4,214

2,532

8,125

6,029

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

Flat-Rolled to Tubular

9

101

Flat-Rolled to 榴莲视频E (iron ore pellets and fines)

223

225

439

225

Mini Mill (b) to Flat-Rolled

125

186

Raw steel production (thousands of net tons):

Flat-Rolled

2,485

1,468

5,066

4,616

Mini Mill (b)

747

1,257

U. S. Steel Europe

1,279

645

2,476

1,527

Tubular (c)

114

207

Raw steel capability utilization: (d)

Flat-Rolled

59

%

35

%

60

%

54

%

Mini Mill (b)

91

%

%

84

%

%

U. S. Steel Europe

103

%

52

%

100

%

61

%

Tubular

51

%

%

46

%

%

CAPITAL EXPENDITURES (dollars in millions)

Flat-Rolled

$

93

$

118

$

167

$

310

Mini Mill (b)

20

56

U. S. Steel Europe

12

14

26

48

Tubular

22

40

34

94

Other Businesses

1

1

1

3

Total

$

148

$

173

$

284

$

455

(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

Six Months Ended

June 30,

June 30,

(Dollars in millions, except per share amounts)

2021

2020

2021

2020

NET SALES

$

5,025

$

2,091

$

8,689

$

4,839

OPERATING EXPENSES (INCOME):

Cost of sales

3,678

2,274

6,752

4,879

Selling, general and administrative expenses

106

62

208

134

Depreciation, depletion and amortization

202

159

391

319

(Earnings) loss from investees

(35

)

39

(49

)

47

Asset impairment charges

28

28

263

Gain on equity investee transactions

(111

)

(31

)

Restructuring and other charges

31

89

37

130

Net (gain) loss on sale of assets

(15

)

(15

)

Other (gains) losses, net

(4

)

(11

)

5

Total operating expenses

3,991

2,623

7,230

5,746

EARNINGS (LOSS) BEFORE INTEREST AND INCOME TAXES

1,034

(532

)

1,459

(907

)

Net interest and other financial costs

59

62

392

97

EARNINGS (LOSS) BEFORE INCOME TAXES

975

(594

)

1,067

(1,004

)

Income tax benefit

(37

)

(5

)

(36

)

(24

)

Net earnings (loss)

1,012

(589

)

1,103

(980

)

Net earnings attributable to noncontrolling interests

NET EARNINGS (LOSS) ATTRIBUTABLE TO UNITED STATES STEEL CORPORATION

$

1,012

$

(589

)

$

1,103

$

(980

)

COMMON STOCK DATA:

Net earnings (loss) per share attributable to

榴莲视频 stockholders:

Basic

$

3.75

$

(3.36

)

$

4.25

$

(5.67

)

Diluted

$

3.53

$

(3.36

)

$

4.02

$

(5.67

)

Weighted average shares, in thousands

Basic

269,872

175,327

259,668

172,775

Diluted

286,337

175,327

274,512

172,775

Dividends paid per common share

$

0.01

$

0.01

$

0.02

$

0.02

UNITED STATES STEEL CORPORATION

CONDENSED CASH FLOW STATEMENT (Unaudited)

Six Months Ended

June 30,

(Dollars in millions)

2021

2020

Cash provided by (used in) operating activities:

Net earnings (loss)

$

1,103

$

(980

)

Depreciation, depletion and amortization

391

319

Asset impairment charges

28

263

Gain on equity investee transactions

(111

)

(31

)

Restructuring and other charges

37

130

Loss on debt extinguishment

256

Pensions and other postretirement benefits

(46

)

(10

)

Deferred income taxes

(77

)

(12

)

Net gain on sale of assets

(15

)

Working capital changes

(429

)

(42

)

Income taxes receivable/payable

47

10

Other operating activities

(81

)

(9

)

Total

1,103

(362

)

Cash used in investing activities:

Capital expenditures

(284

)

(455

)

Acquisition of Big River Steel, net of cash acquired

(625

)

Investment in Big River Steel

(3

)

Proceeds from sale of assets

25

1

Proceeds from sale of ownership interests in equity investees

8

Other investing activities

(1

)

(4

)

Total

(885

)

(453

)

Cash (used in) provided by financing activities:

Repayment of short-term debt

(180

)

Revolving credit facilities - borrowings, net of financing costs

50

1,462

Revolving credit facilities - repayments

(911

)

(644

)

Issuance of long-term debt, net of financing costs

825

1,048

Repayment of long-term debt

(1,418

)

(6

)

Proceeds from public offering of common stock

790

410

Proceeds from Stelco Option Agreement

40

Other financing activities

(11

)

(4

)

Total

(855

)

2,306

Effect of exchange rate changes on cash

(9

)

(1

)

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

(646

)

1,490

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

$

1,472

$

2,429

UNITED STATES STEEL CORPORATION

CONDENSED BALANCE SHEET (Unaudited)

June 30,

December 31,

(Dollars in millions)

2021

2020

Cash and cash equivalents

$

1,329

$

1,985

Receivables, net

2,010

994

Inventories

1,914

1,402

Assets held for sale

154

Other current assets

231

51

Total current assets

5,638

4,432

Operating lease assets

192

214

Property, plant and equipment, net

7,375

5,444

Investments and long-term receivables, net

572

1,177

Intangible assets, net

533

129

Goodwill

909

4

Other noncurrent assets

865

659

Total assets

$

16,084

$

12,059

Accounts payable and other accrued liabilities

2,819

1,884

Payroll and benefits payable

425

308

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

763

192

Other current liabilities

364

272

Liabilities held for sale

80

Total current liabilities

4,451

2,656

Noncurrent operating lease liabilities

145

163

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

4,803

4,695

Employee benefits

208

322

Other long-term liabilities

534

344

榴莲视频 stockholders' equity

5,851

3,786

Noncontrolling interests

92

93

Total liabilities and stockholders' equity

$

16,084

$

12,059

UNITED STATES STEEL CORPORATION

NON-GAAP FINANCIAL MEASURES

RECONCILIATION OF ADJUSTED NET EARNINGS (LOSS)

Three Months Ended

Six Months Ended

June 30,

June 30,

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

2021

2020

2021

2020

Reconciliation to adjusted net earnings (loss) attributable to 榴莲视频

Net earnings (loss) attributable to 榴莲视频

$

1,012

$

(589

)

$

1,103

$

(980

)

Debt extinguishment

255

Big River Steel - inventory step-up amortization

24

Big River Steel - unrealized losses

5

14

Big River Steel - acquisition costs

9

Restructuring and other charges

30

82

36

123

Gain on previously held investment in Big River Steel

(111

)

Asset impairment

26

26

263

Property sale

(14

)

(14

)

Reversal of tax valuation allowance (b)

(95

)

(95

)

Tubular inventory impairment

24

24

Uncertain tax positions

13

13

Gain on previously held investment in UPI

(25

)

Big River Steel options and forward adjustments

5

(6

)

December 24, 2018 Clairton coke making facility fire

(4

)

(4

)

Total adjustments

(48

)

120

144

388

Adjusted net earnings (loss) attributable to 榴莲视频

$

964

(469

)

$

1,247

(592

)

Reconciliation to adjusted diluted net earnings (loss) per share

Diluted net earnings (loss) per share

$

3.53

$

(3.36

)

$

4.02

$

(5.67

)

Debt extinguishment

0.93

Big River Steel - inventory step-up amortization

0.09

Big River Steel - unrealized losses

0.02

0.05

Big River Steel - acquisition costs

0.03

Restructuring and other charges

0.11

0.47

0.13

0.70

Gain on previously held investment in Big River Steel

(0.40

)

Asset impairment

0.09

0.09

1.52

Property sale

(0.05

)

(0.05

)

Reversal of tax valuation allowance (b)

(0.33

)

(0.35

)

Tubular inventory impairment

0.14

0.14

Uncertain tax positions

0.07

0.07

Gain on previously held investment in UPI

(0.14

)

Big River Steel options and forward adjustments

0.03

(0.03

)

December 24, 2018 Clairton coke making facility fire

(0.02

)

(0.02

)

Total adjustments

(0.16

)

0.69

0.52

2.24

Adjusted diluted net earnings (loss) per share

$

3.37

$

(2.67

)

$

4.54

$

(3.43

)

(a) The adjustments included in this table for the three months ended June 30, 2021 were tax effected due to the partial reversal of the valuation allowance on our domestic deferred tax assets at June 30, 2021.

(b) The $95 million adjustment was related to the reversal of a portion of the tax valuation allowance recorded against the Company's net domestic deferred tax asset as a result of the Company's three-year cumulative income position and a change in the projections of income in future years. There was an additional net benefit of $167 million included in earnings related to the reversal of the valuation allowance due to a change in estimated current year earnings.

UNITED STATES STEEL CORPORATION

NON-GAAP FINANCIAL MEASURES

RECONCILIATION OF ADJUSTED EBITDA

Three Months Ended

Six Months Ended

June 30,

June 30,

(Dollars in millions)

2021

2020

2021

2020

Reconciliation to Adjusted EBITDA

Net earnings (loss) attributable to 榴莲视频

$

1,012

$

(589

)

$

1,103

$

(980

)

Income tax benefit

(37

)

(5

)

(36

)

(24

)

Net interest and other financial costs

59

62

392

97

Depreciation, depletion and amortization expense

202

159

391

319

EBITDA

1,236

(373

)

1,850

(588

)

Big River Steel - inventory step-up amortization

24

Big River Steel - unrealized losses

6

15

Big River Steel - acquisition costs

9

Restructuring and other charges

31

89

37

130

Gain on previously held investment in Big River Steel

(111

)

Asset impairment charge

28

28

263

Property sale

(15

)

(15

)

Tubular inventory impairment

24

24

Gain on previously held investment in UPI

(25

)

December 24, 2018 Clairton coke making facility fire

(4

)

(4

)

Adjusted EBITDA

$

1,286

$

(264

)

$

1,837

$

(200

)

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, property sale, Tubular inventory impairment, uncertain tax positions, gain on previously held investment in UPI, Big River Steel options and forward adjustments and December 24, 2018 Clairton coke making facility fire (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, financial performance, 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, 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 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 榴莲视频 and its consolidated subsidiaries, 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, and 鈥淭ranstar鈥 refers to Transtar LLC and its direct and indirect subsidiaries unless otherwise indicated by the context.

###

Founded in 1901, 榴莲视频 is a leading steel producer. With an unwavering focus on safety, the company鈥檚 customer-centric Best for All鈩 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: 榴莲视频