Yahoo Finance U. S. Steel Delivering on Strategic Commitments; Reports Solid Fourth Quarter and Second-Best Earnings in 2022
Fourth quarter 2022 net earnings of $174 million, or $0.68 per diluted share; full-year 2022 net earnings of $2.52 billion, or $9.16 per diluted share.
Fourth quarter 2022 adjusted net earnings of $226 million, or $0.87 per diluted share; full-year 2022 adjusted net earnings of $2.74 billion, or $9.95 per diluted share.
Fourth quarter 2022 adjusted EBITDA of $431 million; full-year 2022 adjusted EBITDA of $4.23 billion.
PITTSBURGH, February 02, 2023--(BUSINESS WIRE)--United States Steel Corporation (NYSE: X) reported fourth quarter 2022 net earnings of $174 million, or $0.68 per diluted share. Adjusted net earnings was $226 million, or $0.87 per diluted share and excluded the impact of a one-time signing bonus related to the United Steelworkers labor agreement and other one-time items detailed in the reconciliation of adjusted net earnings table. This compares to fourth quarter 2021 net earnings of $1.07 billion, or $3.75 per diluted share. Adjusted net earnings for the fourth quarter 2021 was $1.43 billion, or $5.01 per diluted share.
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Full-year 2022 net earnings was $2.52 billion, or $9.16 per diluted share. Adjusted net earnings was $2.74 billion, or $9.95 per diluted share and excluded the impact of asset impairments related to the permanent idling of the iron making process at the Company's Great Lakes Works, the impact of a one-time signing bonus related to the United Steelworkers labor agreement, and other one-time items detailed in the reconciliation of adjusted net earnings table. This compares to full-year 2021 net earnings of $4.17 billion, or $14.88 per diluted share. Adjusted net earnings for 2021 were $4.40 billion, or $15.69 per diluted share.
Commenting on the Company's performance, U. S. Steel President and Chief Executive Officer David B. Burritt said, "2022 was another exceptional year for U. S. Steel, marking our second-best financial performance in the Company’s history. Our fourth quarter results exceeded our guidance expectations thanks to the combined efforts of our domestic steelmaking operations and Tubular segment. This includes positive EBITDA in December at our Mini Mill segment, reflecting improving momentum through year-end while continuing to work through higher priced raw materials purchased earlier in 2022. Each of our operating segments contributed meaningfully to 2022’s success, while delivering record safety performance and strong operational excellence, quality, and reliability for our customers."
Burritt continued, "We are well-positioned for 2023. Our record cash and liquidity support a balanced capital allocation approach. We returned approximately $900 million to stockholders in 2022 and plan to continue rewarding stockholders in 2023 while investing in the business. We are already delivering on strategic commitments, including the Gary Works pig iron machine that was commissioned ahead of schedule and on-budget. Later this year, our non-grain oriented electrical steel line at Big River Steel will begin producing advanced steel grades to meet the growing electric vehicle demand. 2023 is a pivotal year in our strategy and we look forward to demonstrating continued progress towards our Best for All future."
Earnings Highlights | ||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||
(Dollars in millions, except per share amounts) | 2022 | 2021 | 2022 | 2021 | ||||||||
Net Sales | $ | 4,338 | $ | 5,622 | $ | 21,065 | $ | 20,275 | ||||
Segment earnings (loss) before interest and income taxes | ||||||||||||
Flat-Rolled | 159 | 890 | 1,951 | 2,630 | ||||||||
Mini Mill (a) | (68 | ) | 366 | 481 | 1,206 | |||||||
U. S. Steel Europe | (68 | ) | 269 | 444 | 975 | |||||||
Tubular | 205 | 30 | 544 | 1 | ||||||||
Other | 6 | (31 | ) | 22 | (11 | ) | ||||||
Total segment earnings before interest and income taxes | $ | 234 | $ | 1,524 | $ | 3,442 | $ | 4,801 | ||||
Other items not allocated to segments | (60 | ) | (379 | ) | (282 | ) | 145 | |||||
Earnings before interest and income taxes | $ | 174 | $ | 1,145 | $ | 3,160 | $ | 4,946 | ||||
Net interest and other financial (benefits) costs | (51 | ) | 130 | (99 | ) | 602 | ||||||
Income tax expense (benefit) | 51 | (54 | ) | 735 | 170 | |||||||
Net earnings | $ | 174 | $ | 1,069 | $ | 2,524 | $ | 4,174 | ||||
Earnings per diluted share | $ | 0.68 | $ | 3.75 | $ | 9.16 | $ | 14.88 | ||||
Adjusted net earnings (b) | $ | 226 | $ | 1,430 | $ | 2,742 | $ | 4,400 | ||||
Adjusted net earnings per diluted share (b) | $ | 0.87 | $ | 5.01 | $ | 9.95 | $ | 15.69 | ||||
Adjusted earnings before interest, income taxes, depreciation and amortization (EBITDA) (b) | $ | 431 | $ | 1,728 | $ | 4,233 | $ | 5,592 | ||||
(a) The Mini Mill segment was added after January 15, 2021 with the purchase of the remaining equity interest in Big River Steel. | ||||||||||||
(b) Please refer to the non-GAAP Financial Measures section of this document for the reconciliation of these amounts. | ||||||||||||
The Company will conduct a conference call on the fourth quarter and full-year 2022 earnings on Friday, February 3, 2023, 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 February 3, 2023.
UNITED STATES STEEL CORPORATION | ||||||||||||||
PRELIMINARY SUPPLEMENTAL STATISTICS (Unaudited) | ||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||
OPERATING STATISTICS | ||||||||||||||
Average realized price: ($/net ton unless otherwise noted) (a) | ||||||||||||||
Flat-Rolled | 1,086 | 1,432 | 1,261 | 1,172 | ||||||||||
Mini Mill (b) | 786 | 1,490 | 1,134 | 1,314 | ||||||||||
U. S. Steel Europe | 957 | 1,075 | 1,090 | 966 | ||||||||||
U. S. Steel Europe (€/net ton) | 942 | 940 | 1,029 | 816 | ||||||||||
Tubular | 3,616 | 1,968 | 2,978 | 1,696 | ||||||||||
Steel shipments (thousands of net tons): (a) | ||||||||||||||
Flat-Rolled | 1,885 | 2,032 | 8,373 | 9,018 | ||||||||||
Mini Mill (b) | 636 | 559 | 2,287 | 2,230 | ||||||||||
U. S. Steel Europe | 715 | 1,028 | 3,759 | 4,302 | ||||||||||
Tubular | 133 | 127 | 523 | 444 | ||||||||||
Total Steel Shipments | 3,369 | 3,746 | 14,942 | 15,994 | ||||||||||
Intersegment steel (unless otherwise noted) shipments (thousands of net tons): | ||||||||||||||
Flat-Rolled to USSE (iron ore pellets and fines and coal) | — | — | 144 | 439 | ||||||||||
Flat-Rolled to USSE | — | — | 30 | — | ||||||||||
Flat-Rolled to Mini Mill | — | — | 30 | — | ||||||||||
Mini Mill (b) to Flat-Rolled | 36 | 88 | 288 | 388 | ||||||||||
Raw steel production (thousands of net tons): | ||||||||||||||
Flat-Rolled | 1,952 | 2,181 | 8,846 | 9,881 | ||||||||||
Mini Mill (b) | 683 | 681 | 2,650 | 2,688 | ||||||||||
U. S. Steel Europe | 589 | 1,181 | 3,839 | 4,931 | ||||||||||
Tubular | 137 | 140 | 634 | 464 | ||||||||||
Raw steel capability utilization: (c) | ||||||||||||||
Flat-Rolled | 59 | % | 51 | % | 67 | % | 58 | % | ||||||
Mini Mill (b) | 82 | % | 82 | % | 80 | % | 81 | % | ||||||
U. S. Steel Europe | 47 | % | 94 | % | 77 | % | 99 | % | ||||||
Tubular | 60 | % | 62 | % | 70 | % | 52 | % | ||||||
CAPITAL EXPENDITURES (dollars in millions) | ||||||||||||||
Flat-Rolled | 138 | 150 | 503 | 422 | ||||||||||
Mini Mill (b) | 449 | 229 | 1,159 | 331 | ||||||||||
U. S. Steel Europe | 37 | 18 | 90 | 57 | ||||||||||
Tubular | 7 | 5 | 17 | 51 | ||||||||||
Other Businesses | — | 1 | — | 2 | ||||||||||
Total | $ | 631 | $ | 403 | $ | 1,769 | $ | 863 | ||||||
(a) Excludes intersegment shipments. | ||||||||||||||
(b) The Mini Mill segment was 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. | ||||||||||||||
UNITED STATES STEEL CORPORATION | |||||||||||||
CONDENSED STATEMENT OF OPERATIONS (Unaudited) | |||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||
(Dollars in millions, except per share amounts) | 2022 | 2021 | 2022 | 2021 | |||||||||
Net Sales | $ | 4,338 | $ | 5,622 | $ | 21,065 | $ | 20,275 | |||||
Operating expenses (income): | |||||||||||||
Cost of sales | 3,934 | 3,900 | 16,777 | 14,533 | |||||||||
Selling, general and administrative expenses | 98 | 110 | 422 | 426 | |||||||||
Depreciation, depletion and amortization | 197 | 204 | 791 | 791 | |||||||||
Earnings from investees | (41 | ) | (64 | ) | (243 | ) | (170 | ) | |||||
Gain on sale of Transtar | — | — | — | (506 | ) | ||||||||
Asset impairment charges | 6 | 245 | 163 | 273 | |||||||||
Restructuring and other charges | (9 | ) | 91 | 48 | 128 | ||||||||
Gain on equity investee transactions | (6 | ) | — | (6 | ) | (111 | ) | ||||||
Net (gains) losses on sale of assets | (2 | ) | 1 | (12 | ) | (7 | ) | ||||||
Other gains, net | (13 | ) | (10 | ) | (35 | ) | (28 | ) | |||||
Total operating expenses | 4,164 | 4,477 | 17,905 | 15,329 | |||||||||
Earnings before interest and income taxes | 174 | 1,145 | 3,160 | 4,946 | |||||||||
Net interest and other financial (benefits) costs | (51 | ) | 130 | (99 | ) | 602 | |||||||
Earnings before income taxes | 225 | 1,015 | 3,259 | 4,344 | |||||||||
Income tax expense (benefit) | 51 | (54 | ) | 735 | 170 | ||||||||
Net earnings | 174 | 1,069 | 2,524 | 4,174 | |||||||||
Less: Net earnings attributable to noncontrolling interests | — | — | — | — | |||||||||
Net earnings attributable to United States Steel Corporation | $ | 174 | $ | 1,069 | $ | 2,524 | $ | 4,174 | |||||
COMMON STOCK DATA: | |||||||||||||
Net earnings per share attributable to United States Steel Corporation Stockholders | |||||||||||||
Basic | $ | 0.75 | $ | 3.97 | $ | 10.22 | $ | 15.77 | |||||
Diluted | $ | 0.68 | $ | 3.75 | $ | 9.16 | $ | 14.88 | |||||
Weighted average shares, in thousands | |||||||||||||
Basic | 232,558 | 268,995 | 246,986 | 264,667 | |||||||||
Diluted | 262,703 | 285,321 | 276,963 | 280,444 | |||||||||
Dividends paid per common share | $ | 0.05 | $ | 0.05 | $ | 0.20 | $ | 0.08 | |||||
UNITED STATES STEEL CORPORATION | ||||||||
CONDENSED CASH FLOW STATEMENT (Unaudited) | ||||||||
Twelve Months Ended December 31, | ||||||||
(Dollars in millions) | 2022 | 2021 | ||||||
Increase (decrease) in cash, cash equivalents and restricted cash | ||||||||
Operating activities: | ||||||||
