Exhibit 99.1

NEWS RELEASE
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CONTACTS:
Media                
Erin DiPietro        
Manager                
Corporate Communications
T - (412) 433-6845         
E - emdipietro@uss.com         

Investors/Analysts
Dan Lesnak
General Manager
Investor Relations
T - (412) 433-1184
E - dtlesnak@uss.com




FOR IMMEDIATE RELEASE:
UNITED STATES STEEL CORPORATION REPORTS IMPROVED 2016 RESULTS WITH INCREASED OPERATING CASH FLOW AND STRONGER CASH AND LIQUIDITY

Full-year net loss of $440 million, or $2.81 per diluted share
Operating cash flow of $727 million for 2016
Total liquidity of $2.9 billion, including $1.5 billion of cash
Full-year adjusted EBITDA of $510 million
Carnegie Way benefits of $745 million realized in 2016

PITTSBURGH, January 31, 2017 – United States Steel Corporation (NYSE: X) reported a full-year 2016 net loss of $440 million, or $2.81 per diluted share, which included unfavorable adjustments totaling $190 million, or $1.21 per diluted share. This compared to a full-year 2015 net loss of $1.6 billion, or $11.24 per diluted share, which included unfavorable adjustments totaling $1.4 billion, or $9.45 per diluted share.
Fourth quarter 2016 net loss of $105 million, or $0.61 per diluted share, included unfavorable adjustments totaling $152 million, or $0.88 per diluted share. This compares to fourth quarter 2015 net loss of


2


$1.1 billion, or $7.74 per diluted share, which included unfavorable adjustments totaling $1.1 billion, or $7.51 per diluted share, and third quarter 2016 net earnings of $51 million, or $0.32 per diluted share, which included unfavorable adjustments totaling $14 million, or $0.08 per diluted share.
For a description of the non-generally accepted accounting principles (non-GAAP) measures and a reconciliation from net earnings (loss) attributable to U. S. Steel, see the non-GAAP Financial Measures section.

Earnings Highlights
 
 
 
(Dollars in millions, except per share amounts)
4Q 2016
3Q 2016
4Q 2015
2016
2015
Net Sales
$
2,650

$
2,686

$
2,572

$
10,261

$
11,574

Segment earnings (loss) before interest and income taxes






     Flat-Rolled
$
65

$
114

$
(88
)
$
(3
)
$
(237
)
     U. S. Steel Europe
63

81

6

185

81

     Tubular
(87
)
(75
)
(64
)
(304
)
(179
)
     Other Businesses
21

18

9

63

33

Total segment earnings (loss) before interest and income taxes
$
62

$
138

$
(137
)
$
(59
)
$
(302
)
Postretirement benefit income (expense)
26

8

(5
)
62

(43
)
Other items not allocated to segments
(152
)
(14
)
(311
)
(168
)
(857
)
(Loss) earnings before interest and income taxes
$
(64
)
$
132

$
(453
)
$
(165
)
$
(1,202
)
Net interest and other financial costs
43

62

87

251

257

Income tax (benefit) provision
(2
)
19

593

24

183

Less: Net earnings attributable to the noncontrolling interests





Net (loss) earnings attributable to United States Steel Corporation
$
(105
)
$
51

$
(1,133
)
$
(440
)
$
(1,642
)
-(Loss) earnings per basic share
$
(0.61
)
$
0.32

$
(7.74
)
$
(2.81
)
$
(11.24
)
-(Loss) earnings per diluted share
$
(0.61
)
$
0.32

$
(7.74
)
$
(2.81
)
$
(11.24
)
 
 
 
 




Adjusted earnings (loss) before interest, income taxes, depreciation and amortization (EBITDA) (a)
$
211

$
272

$
(13
)
$
510

$
202

(a) Please refer to the non-GAAP Financial Measures section of this document for the reconciliation of net earnings (loss) attributable to United States Steel Corporation to adjusted EBITDA.
Commenting on results, U. S. Steel President and Chief Executive Officer Mario Longhi said, "We entered 2016 facing very challenging market conditions, but remained focused on our Carnegie Way transformation efforts. Despite lower average realized prices and shipments in 2016, our results are better as we continued to improve our product mix and cost structure. Our focus on cash, including better working capital management and opportunistic capital markets transactions, resulted in an improved debt maturity profile and stronger cash and liquidity. We are well positioned to accelerate the revitalization of our assets to improve our operating reliability and efficiency, and deliver value-enhancing solutions to our customers."


3


Segment earnings before interest and income taxes were $62 million, or $16 per ton, for the fourth quarter of 2016 compared with segment earnings before interest and income taxes of $138 million, or $37 per ton, in the third quarter of 2016 and a segment loss before interest and income taxes of $137 million, or $37 per ton, in the fourth quarter of 2015.
For the fourth quarter 2016, we recorded a tax benefit of $2 million on our pre-tax loss of $107 million. For the full-year 2016, we recorded a tax provision of $24 million on our pre-tax loss of $416 million. Due to the full valuation allowance on our domestic deferred tax assets, the tax provision does not reflect any tax impact on domestic results.
We generated positive operating cash flow of $727 million for the year ended December 31, 2016. As of December 31, 2016, U. S. Steel had $1.5 billion of cash and $2.9 billion of total liquidity.
Segment Analysis
Fourth quarter results for our Flat-Rolled segment declined as compared with the third quarter primarily due to a decrease in average realized prices, fewer shipments, as well as increased outage spending. Planned outages as part of our previously announced asset revitalization process limited the amount of tons we could ship in the quarter. Full-year Flat-Rolled segment results for 2016 improved from 2015 largely due to lower raw material costs, lower spending, and benefits provided by our Carnegie Way efforts. These improvements were partially offset by lower average realized prices and shipments.
Fourth quarter results for our European segment declined as compared with the third quarter primarily due to rising raw material costs, particularly for coking coal and iron units. These adverse impacts were partially offset by increased shipments and reduced spending. Full-year European segment results for 2016 improved from 2015 due to lower raw material and energy costs along with better operating efficiencies from running at higher utilization rates, partially offset by lower average realized prices.
Fourth quarter results for our Tubular segment declined as compared with the third quarter largely due to an unfavorable lower of cost or market (LCM) adjustment for obsolete inventory related to the prolonged downturn in the energy markets. Full-year 2016 results for our Tubular segment decreased from 2015 due to a combination of lower average realized prices and shipments, as well as the LCM adjustment for obsolete inventory, only partly offset by lower substrate costs and improved spending.





4


2017 Outlook
Commenting on U. S. Steel’s outlook for 2017, Longhi said, "We are starting 2017 with much better market conditions than we faced at the beginning of 2016. Our Carnegie Way transformation efforts over the last three years have improved our cost structure, streamlined our operating footprint and increased our customer focus. These substantive changes and improvements have increased our earnings power. While we will benefit from improved market conditions, they continue to be volatile and we must remain focused on improving the things that we can control. Pursuing our safety objective of zero injuries, improving our assets and operating performance, and driving innovation that creates differentiated solutions for our customers remain our top priorities."
If market conditions, which include spot prices, raw material costs, customer demand, import volumes, supply chain inventories, rig counts and energy prices, remain at their current levels, we expect:
2017 net earnings of approximately $535 million, or $3.08 per share, and EBITDA of approximately $1.3 billion;
Results for our Flat-Rolled, European, and Tubular segments to be higher than 2016;
To be cash positive for the year, primarily due to improved cash from operations; and
Other Businesses to be comparable to 2016 and approximately $50 million of postretirement benefit expense.
We believe market conditions will change, and as changes occur during the balance of 2017, our net earnings and EBITDA should change consistent with the pace and magnitude of changes in market conditions.
Please refer to the non-GAAP Financial Measures section of this document for the reconciliation of the Outlook net earnings to EBITDA.
*****
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 the net earnings (loss), is a relevant indicator of trends relating to cash generating activity and provides management and investors with additional information for comparison of our operating results to the operating results of other companies.


5


Adjusted net earnings (loss) and adjusted net earnings (loss) per diluted share are non-GAAP measures that exclude the effects of restructuring charges, impairment charges, losses associated with U. S. Steel Canada Inc., losses on debt extinguishment, certain postemployment actuarial adjustments, and charges for deferred tax asset valuation allowances that are not part of the Company’s core operations. Adjusted EBITDA is also a non-GAAP measure that excludes the effects of restructuring charges, impairment charges, losses associated with
U. S. Steel Canada Inc, and certain postemployment actuarial adjustments. 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, particularly cash generating activity, by excluding the effects of restructuring charges, impairment charges, losses on debt extinguishment, certain postemployment actuarial adjustments, charges for deferred tax asset valuation allowances, and losses associated with non-core operations 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 useful to investors by facilitating a comparison of our operating performance to the operating performance of our competitors, many of which use adjusted net earnings (loss), adjusted net earnings (loss) per diluted share and adjusted EBITDA as alternative measures of operating performance. 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 or in preparing the Company’s annual financial outlook. 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 consolidated statement of operations (unaudited), consolidated cash flow statement (unaudited), condensed consolidated balance sheet (unaudited) and preliminary supplemental statistics (unaudited) for U. S. Steel are attached.
The Company will conduct a conference call on fourth quarter and full-year 2016 earnings on Wednesday, February 1, at 8:30 a.m. Eastern Standard. To listen to the webcast of the conference call, visit the U. S. Steel website, www.ussteel.com, and click on “Current Information” under the “Investors” section.
For more information on U. S. Steel, visit our website at www.ussteel.com.


6


CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This release contains information that may constitute “forward-looking statements” within the meaning of Section 27 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 growth, share of sales and earnings per share growth, 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, 2015, 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.

-oOo-
2017-003




UNITED STATES STEEL CORPORATION
STATEMENT OF OPERATIONS (Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended
 
Year Ended
 
 
 
Dec. 31
 
Sept. 30
 
Dec. 31
 
December 31,
(Dollars in millions, except per share amounts)
2016
 
2016
 
2015
 
2016
 
2015
NET SALES
 
$
2,650

 
$
2,686

 
$
2,572

 
$
10,261

 
$
11,574

 
 
 
 
 
 
 
 
 
 
 
 
OPERATING EXPENSES (INCOME):
 
 
 
 
 
 
 
 
 
 
Cost of sales (excludes items shown below)
2,430

 
2,360

 
2,629

 
9,623

 
11,141

 
Selling, general and administrative expenses
49

 
73

 
107

 
255

 
415

 
Depreciation, depletion and amortization
123

 
126

 
129

 
507

 
547

 
Earnings from investees
(7
)
 
(18
)
 
(9
)
 
(98
)
 
(38
)
 
Impairment of intangible assets

 
14

 

 
14

 

 
Losses associated with U. S. Steel Canada Inc.

 

 
121

 

 
392

 
Restructuring and other charges
121

 
(3
)
 
47

 
122

 
322

 
Net (gain) loss on disposal of assets
(1
)
 
3

 

 
5

 
(2
)
 
Other (income) expenses, net
(1
)
 
(1
)
 
1

 
(2
)
 
(1
)
 
 
 
 
 
 
 
 
 
 
 
 
 
           Total operating expenses
2,714

 
2,554

 
3,025

 
10,426

 
12,776

 
 
 
 
 
 
 
 
 
 
 
 
(LOSS) EARNINGS BEFORE INTEREST AND INCOME TAXES
(64
)
 
132

 
(453
)
 
(165
)
 
(1,202
)
Net interest and other financial costs
43

 
62

 
87

 
251

 
257

 
 
 
 
 
 
 
 
 
 
 
 
 
(LOSS) EARNINGS BEFORE INCOME TAXES
(107
)
 
70

 
(540
)
 
(416
)
 
(1,459
)
Income tax (benefit) provision
(2
)
 
19

 
593

 
24

 
183

 
 
 
 
 
 
 
 
 
 
 
 
Net (loss) earnings
(105
)
 
51

 
(1,133
)
 
(440
)
 
(1,642
)
 
Less: Net earnings (loss) attributable to the
 
 
 
 
 
 
 
 
 
 
   noncontrolling interests

 

 

 

 

NET (LOSS) EARNINGS ATTRIBUTABLE TO
 
 
 
 
 
 
 
 
 
 
UNITED STATES STEEL CORPORATION
$
(105
)
 
$
51

 
$
(1,133
)
 
$
(440
)
 
$
(1,642
)
 
 
 
 
 
 
 
 
 
 
 
 
COMMON STOCK DATA:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net (loss) earnings per share attributable to
 
 
 
 
 
 
 
 
 
   United States Steel Corporation stockholders:
 
 
 
 
 
 
 
 
 
 
Basic
 
$
(0.61
)
 
$
0.32

 
$
(7.74
)
 
$
(2.81
)
 
$
(11.24
)
 
Diluted
 
$
(0.61
)
 
$
0.32

 
$
(7.74
)
 
$
(2.81
)
 
$
(11.24
)
Weighted average shares, in thousands
 
 
 
 
 
 
 
 
 
 
Basic
 
172,975

 
160,513

 
146,347

 
156,673

 
146,094

 
Diluted
 
172,975

 
161,700

 
146,347

 
156,673

 
146,094

Dividends paid per common share
$
0.05

 
$
0.05

 
$
0.05

 
$
0.20

 
$
0.20









UNITED STATES STEEL CORPORATION
CASH FLOW STATEMENT (Unaudited)
 
 
 
 
 
 
 
 
 
 
 
Year Ended
 
 
 
 
December 31,
(Dollars in millions)
 
2016
 
2015
Cash provided by operating activities:
 
 
 
 
Net loss
 
$
(440
)
 
$
(1,642
)
 
Depreciation, depletion and amortization
507

 
547

 
Impairment of intangible assets
14

 

 
Losses associated with U. S. Steel Canada Inc.

 
392

 
Restructuring and other charges
122

 
322

 
Loss on debt extinguishment
22

 
36

 
Pensions and other postretirement benefits
(62
)
 
50

 
Deferred income taxes
9

 
213

 
Net loss (gain) on disposal of assets
5

 
(2
)
 
Working capital changes
596

 
551

 
Income taxes receivable/payable
10

 
6

 
Other operating activities
(56
)
 
(114
)
 
 
Total
 
727

 
359

 
 
 
 
 
 
 
Cash used in investing activities:
 
 
 
 
Capital expenditures
 
(306
)
 
(500
)
 
Acquisitions
 

 
(25
)
 
Disposal of assets
 
12

 
4

 
Other investing activities
 
(24
)
 
11

 
 
Total
 
(318
)
 
(510
)
 
 
 
 
 
 
 
Cash provided by (used in) financing activities:
 
 
 
 
Issuance of long-term debt, net of financing costs
958

 

 
Repayment of long-term debt
 
(1,070
)
 
(379
)
 
Settlement of contingent consideration
(15
)
 

 
Common stock issued
 
482

 

 
Receipts from exercise of stock options
35

 
1

 
Dividends paid
 
(31
)
 
(29
)
 
 
Total
 
359

 
(407
)
 
 
 
 
 
 
 
Effect of exchange rate changes on cash
(8
)
 
(41
)
 
 
 
 
 
 
 
Net increase (decrease) in cash and cash equivalents
760

 
(599
)
Cash and cash equivalents at beginning of the year
755

 
1,354

 
 
 
 
 
 
 
Cash and cash equivalents at end of the period
$
1,515

 
$
755










UNITED STATES STEEL CORPORATION
CONDENSED BALANCE SHEET (Unaudited)
 
 
 
 
 
 
 
 
 
Dec. 31
 
Dec. 31
(Dollars in millions)
 
2016
 
2015
Cash and cash equivalents
$
1,515

 
$
755

Receivables, net
1,248

 
1,063

Inventories
1,573

 
2,074

Other current assets
20

 
25

 
Total current assets
4,356

 
3,917

Property, plant and equipment, net
3,979

 
4,411

Investments and long-term receivables, net
528

 
540

Intangible assets, net
175

 
196

Other assets
122

 
103

 
 
 
 
 
 
 
Total assets
 
$
9,160

 
$
9,167

 
 
 
 
 
 
Accounts payable
$
1,668

 
$
1,493

Payroll and benefits payable
400

 
462

Short-term debt and current maturities of long-term debt
50

 
45

Other current liabilities
213

 
148

 
Total current liabilities
2,331

 
2,148

Long-term debt, less unamortized discount and debt issuance costs
2,981

 
3,093

Employee benefits
1,216

 
1,101

Other long-term liabilities
357

 
388

United States Steel Corporation stockholders' equity
2,274

 
2,436

Noncontrolling interests
1

 
1

 
 
 
 
 
 
 
Total liabilities and stockholders' equity
$
9,160

 
$
9,167






UNITED STATES STEEL CORPORATION
NON-GAAP FINANCIAL MEASURES (Unaudited)

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 all non-GAAP measures, as additional measurements to enhance the understanding of our operating performance. We believe that EBITDA, considered along with the net earnings (loss), is a relevant indicator of trends relating to cash generating activity 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 restructuring charges, impairment charges, losses associated with U. S. Steel Canada Inc., losses on debt extinguishment, certain postemployment actuarial adjustments, and charges for deferred tax asset valuation allowances that are not part of the Company’s core operations. Adjusted EBITDA is also a non-GAAP measure that excludes the effects of restructuring charges, impairment charges, losses associated with U. S. Steel Canada Inc., and certain postemployment actuarial adjustments. 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, particularly cash generating activity, by excluding the effects of restructuring charges, impairment charges, losses on debt extinguishment, certain postemployment actuarial adjustments, charges for deferred tax asset valuation allowances, and losses associated with non-core operations 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 useful to investors by facilitating a comparison of our operating performance to the operating performance of our competitors, many of which use adjusted net earnings (loss), adjusted net earnings (loss) per diluted share and adjusted EBITDA as alternative measures of operating performance. 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 or in preparing the Company’s annual financial outlook. 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.





    
RECONCILIATION OF ADJUSTED EBITDA
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended
 
Year Ended
 
 
Dec. 31
 
Sept. 30
 
Dec. 31
 
Dec. 31
 
Dec. 31
(Dollars in millions)
2016
 
2016
 
2015
 
2016
 
2015
Reconciliation to Adjusted EBITDA
 
 
 
 
 
 
 
 
 
 
Net (loss) earnings attributable to United States Steel Corporation
$
(105
)
 
$
51

 
$
(1,133
)
 
$
(440
)
 
$
(1,642
)
 
Income tax (benefit) provision
(2
)
 
19

 
593

 
24

 
183

 
Net interest and other financial costs
43

 
62

 
87

 
251

 
257

 
Depreciation, depletion and amortization expense
123

 
126

 
129

 
507

 
547

 
EBITDA
59

 
258

 
(324
)
 
342

 
(655
)
 
Loss on shutdown of certain tubular pipe mill assets
126

 

 

 
126

 

 
Supplemental unemployment, severance costs and other charges
(4
)
 

 
47

 
(2
)
 
78

 
Impairment of intangible assets

 
14

 

 
14

 

 
Loss on shutdown of Fairfield Flat-Rolled operations

 

 

 

 
91

 
Losses associated with U. S. Steel Canada Inc.

 

 
121

 

 
392

 
Loss on shutdown of coke production facilities

 

 

 

 
153

 
Granite City Works temporary idling charges
18

 

 
99

 
18

 
99

 
Postemployment benefit actuarial adjustment

 

 
26

 

 
26

 
Impairment of equity investment
12

 

 
18

 
$
12

 
18

 
Adjusted EBITDA
$
211

 
$
272

 
$
(13
)
 
$
510

 
$
202






UNITED STATES STEEL CORPORATION
NON-GAAP FINANCIAL MEASURES (Unaudited)

RECONCILIATION TO ADJUSTED NET EARNINGS (LOSS)
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended(a)
 
Year Ended(a)
 
 
Dec. 31
 
Sept. 30
 
Dec. 31
 
Dec. 31
 
Dec. 31
(Dollars in millions, except per share amounts)
2016
 
2016
 
2015
 
2016
 
2015
Reconciliation to adjusted net earnings (loss) attributable to United States Steel Corporation
 
 
 
 
 
 
 
 
 
 
Net (loss) earnings attributable to United States Steel Corporation
$
(105
)
 
$
51

 
$
(1,133
)
 
$
(440
)
 
$
(1,642
)
 
Loss on shutdown of certain tubular pipe mill assets
126

 

 

 
126

 

 
Supplemental unemployment, severance costs and other charges
(4
)
 

 
47

 
(2
)
 
64

 
Loss on debt extinguishment

 

 

 
22

 

 
Impairment of intangible assets

 
14

 

 
14

 

 
Loss on shutdown of Fairfield Flat-Rolled operations

 

 

 

 
53

 
Losses associated with U. S. Steel Canada Inc.

 

 
121

 

 
266

 
Granite City Works temporary idling charges
18

 

 
99

 
18

 
99

 
Loss on shutdown of coke production facilities

 

 

 

 
65

 
Postemployment benefit actuarial adjustment

 

 
26

 

 
26

 
Impairment of equity investment
12

 

 
18

 
12

 
18

 
Loss on retirement of senior convertible notes

 

 
36

 

 
36

 
Deferred tax asset valuation allowance

 

 
753

 

 
753

 
     Total adjustments
152

 
14

 
1,100

 
190

 
1,380

 
Adjusted net earnings (loss) attributable to United States Steel Corporation
$
47

 
$
65

 
$
(33
)
 
$
(250
)
 
$
(262
)
 
 
 
 
 
 
 
 
 
 
 
Reconciliation to adjusted diluted net earnings (loss) per share
 
 
 
 
 
 
 
 
 
 
Diluted net (loss) earnings per share
$
(0.61
)
 
$
0.32

 
$
(7.74
)
 
$
(2.81
)
 
$
(11.24
)
 
Loss on shutdown of certain tubular pipe mill assets
0.73

 

 

 
0.80

 

 
Supplemental unemployment, severance costs and other charges
(0.03
)
 

 
0.32

 
(0.01
)
 
0.44

 
Loss on debt extinguishment

 

 

 
0.14

 

 
Impairment of intangible assets

 
0.08

 

 
0.09

 

 
Loss on shutdown of Fairfield Flat-Rolled operations

 

 

 

 
0.37

 
Losses associated with U. S. Steel Canada Inc.

 

 
0.82

 

 
1.82

 
Granite City Works temporary idling charges
0.11

 

 
0.68

 
0.11

 
0.68

 
Loss on shutdown of coke production facilities

 

 

 

 
0.44

 
Postemployment benefit actuarial adjustment

 

 
0.18

 

 
0.18

 
Impairment of equity investment
0.07

 

 
0.12

 
0.08

 
0.12

 
Loss on retirement of senior convertible notes

 

 
0.25

 

 
0.25

 
Deferred tax asset valuation allowance

 

 
5.14

 

 
5.15

 
     Total adjustments
0.88

 
0.08

 
7.51

 
1.21

 
9.45

 
Adjusted diluted net earnings (loss) per share
$
0.27

 
$
0.40

 
$
(0.23
)
 
$
(1.60
)
 
$
(1.79
)
(a) The adjustments included in this table have been tax effected at a 0% tax rate due to the recognition of a full valuation allowance.






UNITED STATES STEEL CORPORATION
RECONCILIATION OF ANNUAL EBITDA OUTLOOK
 
 
 
 
 
Year Ended
 
 
Dec. 31
(Dollars in millions)
2017
Reconciliation to Projected Annual EBITDA Included in Outlook
 
 
Projected net earnings attributable to United States Steel Corporation included in Outlook
$
535

 
Estimated income tax expense
60

 
Estimated net interest and other financial costs
245

 
Estimated depreciation, depletion and amortization
460

 
Projected annual EBITDA included in Outlook
$
1,300









UNITED STATES STEEL CORPORATION
PRELIMINARY SUPPLEMENTAL STATISTICS (Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended
 
Year Ended
 
 
 
Dec. 31
 
Sept. 30
 
Dec. 31
 
December 31,
 
(Dollars in millions)
2016
 
2016
 
2015
 
2016
 
2015
 
SEGMENT EARNINGS (LOSS) BEFORE INTEREST AND INCOME TAXES
 
 
 
 
 
 
 
 
 
 
 
Flat-Rolled
$
65

 
$
114

 
$
(88
)
 
$
(3
)
 
$
(237
)
 
 
U. S. Steel Europe
63

 
81

 
6

 
185

 
81

 
 
Tubular
(87
)
 
(75
)
 
(64
)
 
(304
)
 
(179
)
 
 
Other Businesses
21

 
18

 
9

 
63

 
33

 
Total Segment Earnings (Loss) Before Interest and Income Taxes
62

 
138

 
(137
)
 
(59
)
 
(302
)
 
 
Postretirement benefit income (expense)
26

 
8

 
(5
)
 
62

 
(43
)
 
 
Other items not allocated to segments:
 
 
 
 
 
 
 
 
 
 
 
Loss on shutdown of certain tubular pipe mill assets
(126
)
 

 

 
(126
)
 

 
 
Supplemental unemployment and severance costs
4

 

 
(47
)
 
2

 
(78
)
 
 
Impairment of intangible assets

 
(14
)
 

 
(14
)
 


 
 
Losses associated with U. S. Steel Canada Inc.

 

 
(121
)
 

 
(392
)
 
 
Loss on shutdown of coke production facilities

 

 

 

 
(153
)
 
 
Loss on shutdown of Fairfield Flat-Rolled operations

 

 

 

 
(91
)
 
 
Granite City Works temporary idling charges
(18
)
 

 
(99
)
 
(18
)
 
(99
)
 
 
Postemployment benefit actuarial adjustment

 

 
(26
)
 

 
(26
)
 
 
Impairment of equity investment
(12
)
 

 
(18
)
 
(12
)
 
(18
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Loss) earnings before interest and income taxes
$
(64
)
 
$
132

 
$
(453
)
 
$
(165
)
 
$
(1,202
)
 
 
 
 
 
 
 
 
 
 
 
 
 
CAPITAL EXPENDITURES
 
 
 
 
 
 
 
 
 
 
 
Flat-Rolled
$
14

 
$
23

 
$
84

 
$
111

 
$
280

 
 
U. S. Steel Europe
15

 
17

 
32

 
83

 
110

 
 
Tubular
7

 
11

 
27

 
88

 
102

 
 
Other Businesses
2

 

 
3

 
24

 
8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
          Total
$
38

 
$
51

 
$
146

 
$
306

(a) 
$
500

(a) 
(a) Excludes the (decrease) increase in accrued capital expenditures of $(85) million and $59 million for the year ended December 31, 2016, and 2015, respectively.










UNITED STATES STEEL CORPORATION
PRELIMINARY SUPPLEMENTAL STATISTICS (Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended
 
Year Ended
 
 
 
 
Dec. 31
 
Sept. 30
 
Dec. 31
 
December 31,
 
 
 
 
2016
 
2016
 
2015
 
2016
 
2015
OPERATING STATISTICS
 
 
 
 
 
 
 
 
 
 
Average realized price: (a)
 
 
 
 
 
 
 
 
 
 
 
Flat-Rolled ($/net ton)
692

 
718

 
642

 
666

 
695

 
 
U. S. Steel Europe ($/net ton)
484

 
503

 
477

 
483

 
516

 
 
    U. S. Steel Europe (euro/net ton)
449

 
451

 
435

 
436

 
464

 
 
Tubular ($/net ton)
1,027

 
1,049

 
1,273

 
1,071

 
1,464

 
Steel Shipments (thousands of net tons):(a)
 
 
 
 
 
 
 
 
 
 
 
Flat-Rolled
2,369

 
2,535

 
2,591

 
10,094

 
10,595

 
 
U. S. Steel Europe
1,261

 
1,105

 
982

 
4,496

 
4,357

 
 
Tubular
138

 
103

 
127

 
400

 
593

 
 
 
Total Steel Shipments
3,768

 
3,743

 
3,700

 
14,990

 
15,545

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Intersegment Shipments (thousands of net tons):
 
 
 
 
 
 
 
 
 
 
 
Flat-Rolled to Tubular

 

 
35

 
42

 
416

 
Raw Steel Production (thousands of net tons):
 
 
 
 
 
 
 
 
 
 
 
Flat-Rolled
2,458

 
2,734

 
2,421

 
10,706

 
11,337

 
 
U. S. Steel Europe
1,278

 
1,279

 
1,054

 
4,967

 
4,669

 
Raw Steel Capability Utilization: (b)
 
 
 
 
 
 
 
 
 
 
 
Flat-Rolled
57
%
 
64
%
 
57
%
 
63
%
 
60
%
 
 
U. S. Steel Europe
101
%
 
102
%
 
84
%
 
99
%
 
93
%
(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. Prior to the permanent shutdown of the blast furnace and associated steelmaking operations, along with most of the flat-rolled finishing operations at Fairfield Works late in the third quarter of 2015, annual raw steel production capability for Flat-Rolled was 19.4 million net tons.