NEWS RELEASE
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CONTACTS:
Media                
Meghan Cox        
Manager                
Corporate Communications
T - (412) 433-6777        
E - mmcox@uss.com         

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




FOR IMMEDIATE RELEASE:
UNITED STATES STEEL CORPORATION REPORTS FIRST QUARTER 2019 RESULTS

•
Net earnings of $54 million, or $0.31 per diluted share; Adjusted net earnings of $81 million, or $0.47 per diluted share
•
Adjusted EBITDA of $285 million
•
Returned $51 million of capital to stockholders, including $42 million of share repurchases

PITTSBURGH, May 2, 2019 – United States Steel Corporation (NYSE: X) reported first quarter 2019 net earnings of $54 million, or $0.31 per diluted share. Adjusted net earnings were $81 million, or $0.47 per diluted share. This compares to first quarter 2018 net earnings of $18 million, or $0.10 per diluted share. Adjusted net earnings for first quarter 2018 were $57 million, or $0.32 per diluted share.     


2


Earnings Highlights
 
 
 
 
 
 
Quarter Ended
 
 
March 31,
(Dollars in millions, except per share amounts)
2019
2018
Net Sales
$
3,499

$
3,149

Segment earnings (loss) before interest and income taxes
 
 
     Flat-Rolled
$
95

$
33

     U. S. Steel Europe
29

110

     Tubular
10

(27
)
     Other Businesses
8

11

Total segment earnings before interest and income taxes
$
142

$
127

Other items not allocated to segments
(31
)
10

Earnings before interest and income taxes
$
111

$
137

Net interest and other financial costs
49

118

Income tax provision
8

1

Net earnings
$
54

$
18

Earnings per diluted share
$
0.31

$
0.10

Adjusted net earnings(a)
$
81

$
57

Adjusted earnings per diluted share (a)
$
0.47

$
0.32

Adjusted earnings before interest, income taxes, depreciation and amortization (EBITDA) (a)
$
285

$
255

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

“Over the past few years, we have made strategic investments across our footprint, with a focus on our most critical flat-rolled steelmaking assets,” commented President and Chief Executive Officer David B. Burritt. “Our progress continued in the first quarter as we delivered strong financial results. Today's announcement of a state-of-the-art endless casting and rolling line at Mon Valley Works further strengthens our competitive position and will generate long-term value for our stockholders, customers, employees and community.”
*****
The Company will conduct a conference call on first quarter 2019 earnings on Friday, May 3, 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 May 3.




UNITED STATES STEEL CORPORATION
PRELIMINARY SUPPLEMENTAL STATISTICS (Unaudited)
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended
 
 
 
 
March 31,
 
 
 
 
2019
 
2018
OPERATING STATISTICS
 
 
 
 
Average Realized Price: (a)
 
 
 
 
 
Flat-Rolled ($/net ton)
798

 
740

 
 
U. S. Steel Europe ($/net ton)
670

 
707

 
 
U. S. Steel Europe (€/net ton)
590

 
575

 
 
Tubular ($/net ton)
1,549

 
1,387

 
Steel Shipments (thousands of net tons): (a)
 
 
 
 
 
Flat-Rolled
2,725

 
2,534

 
 
U. S. Steel Europe
1,064

 
1,127

 
 
Tubular
207

 
179

 
 
 
Total Steel Shipments
3,996

 
3,840

 
 
 
 
 
 
 
 
Intersegment Shipments (thousands of net tons):
 
 
 
 
 
Flat-Rolled to Tubular
81

 
67

 
Raw Steel Production (thousands of net tons):
 
 
 
 
 
Flat-Rolled
3,075

 
2,784

 
 
U. S. Steel Europe
1,159

 
1,292

 
Raw Steel Capability Utilization: (b)
 
 
 
 
 
Flat-Rolled
73
%
 
66
%
 
 
U. S. Steel Europe
94
%
 
105
%
 
 
 
 
 
 
 
 
CAPITAL EXPENDITURES
 
 
 
 
Flat-Rolled
$
247

 
$
176

 
 
U. S. Steel Europe
34

 
21

 
 
Tubular
19

 
11

 
 
Other Businesses
2

 
—

 
 
 
Total
$
302

 
$
208

(a) Excludes intersegment transfers.
(b) Based on annual raw steel production capability of 17.0 million net tons for Flat-Rolled and 5.0 million net tons for USSE.
 






UNITED STATES STEEL CORPORATION
STATEMENT OF OPERATIONS (Unaudited)
 
 
 
 
 
 
 
 
 
Quarter Ended
 
 
 
March 31,
(Dollars in millions, except per share amounts)
2019
 
2018
NET SALES
 
$
3,499

 
$
3,149

 
 
 
 
 
 
OPERATING EXPENSES (INCOME):
 
 
 
 
Cost of sales (excludes items shown below)
3,172

 
2,808

 
Selling, general and administrative expenses
78

 
78

 
Depreciation, depletion and amortization
143

 
128

 
Earnings from investees
(9
)
 
(3
)
 
Net loss on disposal of assets
4

 
1

 
    Total operating expenses
 
3,388

 
3,012

 
 
 
 
 
 
EARNINGS BEFORE INTEREST AND INCOME TAXES
111

 
137

Net interest and other financial costs
49

 
118

 
EARNINGS BEFORE INCOME TAXES
62

 
19

Income tax provision
8

 
1

Net earnings
 
54

 
18

 
Less: Net earnings attributable to
 
 
 
 
   noncontrolling interests
—

 
—

NET EARNINGS ATTRIBUTABLE TO
 
 
 
 
UNITED STATES STEEL CORPORATION
$
54

 
$
18

 
 
 
 
 
 
COMMON STOCK DATA:
 
 
 
 
 
 
 
 
 
Net earnings per share attributable to
 
 
 
   United States Steel Corporation stockholders:
 
 
 
 
-Basic
 
$
0.31

 
$
0.10

 
-Diluted
 
$
0.31

 
$
0.10

Weighted average shares, in thousands
 
 
 
 
-Basic
 
173,241

 
176,157

 
-Diluted
 
174,545

 
178,289

Dividends paid per common share
$
0.05

 
$
0.05








UNITED STATES STEEL CORPORATION
CASH FLOW STATEMENT (Unaudited)
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended
 
 
 
 
March 31,
(Dollars in millions)
 
2019
 
2018
Cash provided by (used in) operating activities:
 
 
 
 
Net earnings
 
$
54

 
$
18

 
Depreciation, depletion and amortization
 
143

 
128

 
Loss on debt extinguishment
 
—

 
46

 
Pensions and other postretirement benefits
 
30

 
22

 
Deferred income taxes
 
6

 
—

 
Net loss on disposal of assets
 
4

 
1

 
Working capital changes
 
(247
)
 
(310
)
 
Income taxes receivable/payable
 
41

 
(8
)
 
Other operating activities
 
(2
)
 
4

 
 
Total
 
29

 
(99
)
 
 
 
 
 
 
 
Cash used in investing activities:
 
 
 
 
 
Capital expenditures
 
(302
)
 
(208
)
 
 
Total
 
(302
)
 
(208
)
 
 
 
 
 
 
 
Cash provided by (used in) financing activities:
 
 
 
 
Issuance of long-term debt, net of financing costs
—

 
640

 
Repayment of long-term debt
 
—

 
(538
)
 
Common stock repurchased
 
(42
)
 
—

 
Dividends paid
 
(9
)
 
(9
)
 
Receipts from exercise of stock options
 
—

 
30

 
Taxes paid for equity compensation plans
 
(5
)
 
(6
)
 
 
Total
 
(56
)
 
117

 
 
 
 
 
 
 
Effect of exchange rate changes on cash
 
(2
)
 
10

 
 
 
 
 
 
 
Net decrease in cash, cash equivalents and restricted cash
(331
)
 
(180
)
Cash, cash equivalents and restricted cash at beginning of the year
1,040

 
1,597

 
 
 
 
 
 
 
Cash, cash equivalents and restricted cash at end of the period
$
709

 
$
1,417









UNITED STATES STEEL CORPORATION
CONDENSED BALANCE SHEET (Unaudited)
 
 
 
 
 
 
 
 
 
March 31,
 
Dec 31,
(Dollars in millions)
 
2019
 
2018
Cash and cash equivalents
$
676

 
$
1,000

Receivables, net
 
1,729

 
1,659

Inventories
 
2,133

 
2,092

Other current assets
 
92

 
79

 
Total current assets
4,630

 
4,830

Operating lease assets
234

 
—

Property, plant and equipment, net
4,989

 
4,865

Investments and long-term receivables, net
535

 
513

Intangible assets, net
156

 
158

Deferred income tax benefits
427

 
445

Other assets
 
181

 
171

 
 
 
 
 
 
 
Total assets
 
$
11,152

 
$
10,982

 
 
 
 
 
 
Accounts payable and other accrued liabilities
$
2,547

 
$
2,535

Payroll and benefits payable
333

 
440

Short-term debt and current maturities of long-term debt
66

 
65

Other current liabilities
 
194

 
157

 
Total current liabilities
3,140

 
3,197

Noncurrent operating lease liabilities
185

 
—

Long-term debt, less unamortized discount and debt issuance costs
2,326

 
2,316

Employee benefits
 
954

 
980

Other long-term liabilities
311

 
286

United States Steel Corporation stockholders' equity
4,235

 
4,202

Noncontrolling interests
1

 
1

 
 
 
 
 
 
 
Total liabilities and stockholders' equity
$
11,152

 
$
10,982














UNITED STATES STEEL CORPORATION
NON-GAAP FINANCIAL MEASURES
RECONCILIATION OF ADJUSTED EBITDA
 
 
 
 
 
 
 
Quarter Ended
 
 
March 31,
(Dollars in millions)
2019
 
2018
Reconciliation to Adjusted EBITDA
 
 
 
 
Net earnings attributable to United States Steel Corporation
$
54

 
$
18

 
Income tax provision
8

 
1

 
Net interest and other financial costs
49

 
118

 
Depreciation, depletion and amortization expense
143

 
128

 
EBITDA
254

 
265

 
Clairton coke making facility fire
31

 
—

 
Granite City Works adjustment to temporary idling charges
—

 
(10
)
 
Adjusted EBITDA
285

 
255



UNITED STATES STEEL CORPORATION
NON-GAAP FINANCIAL MEASURES
RECONCILIATION OF ADJUSTED NET EARNINGS (LOSS)
 
 
 
 
 
 
 
Quarter Ended(a)
 
 
March 31,
(Dollars in millions, except per share amounts)
2019
 
2018
Reconciliation to adjusted net earnings attributable to United States Steel Corporation
 
 
 
 
Net earnings attributable to United States Steel Corporation
$
54

 
$
18

 
Clairton coke making facility fire
27

 
—

 
Granite City Works adjustment to temporary idling charges
—

 
(10
)
 
Loss on debt extinguishment and other related costs
—

 
49

 
     Total adjustments
27

 
39

 
Adjusted net earnings attributable to United States Steel Corporation
$
81

 
$
57

 
 
 
 
 
Reconciliation to adjusted diluted net earnings per share
 
 
 
 
Diluted net earnings per share
$
0.31

 
$
0.10

 
Clairton coke making facility fire
0.16

 
—

 
Granite City Works adjustment to temporary idling charges
—

 
(0.05
)
 
Loss on debt extinguishment and other related costs
—

 
0.27

 
     Total adjustments
0.16

 
0.22

 
Adjusted diluted net earnings per share
$
0.47

 
$
0.32

(a) The adjustment included in this table for the quarter ended March 31, 2019 has been tax effected. The adjustments for the quarter ended March 31, 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 the Clairton coke making facility fire, 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. Adjusted EBITDA is also a non-GAAP measure that excludes the financial effects of the Clairton coke making facility fire and significant temporary idling charges and adjustments to those charges. 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 financial effects of the Clairton coke making facility fire, significant temporary idling charges and adjustments to those charges and debt extinguishment and other related costs 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’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 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.






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 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, 2018, 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-
2019-014