U.S. Steel
reported a profit of $183 million, or 72 cents per share, in the second
quarter.
That's down nearly 62% from the $477 million, or $1.92 per share,
in the second quarter of 2023.
The Pittsburgh-based steelmaker brought in earnings before
interest, taxes, depreciation and amortization of $443 million in the second
quarter.
“We were pleased with our performance during the second quarter, as
adjusted EBITDA of $443 million improved sequentially in spite of pricing
headwinds that grew in the quarter across our operating segments," U.
S. Steel President and CEO David Burritt said. "Most notable was better
than forecasted results in our North American Flat-Rolled segment, in large
part from enhanced product mix and cost management that kept earnings resilient
in a dynamic market. Our Mini Mill segment performed well, delivering 17%
EBITDA margin when adjusting for $30 million in one-time start-up costs for
strategic projects. Both Tubular and USSE performed as expected in the second
quarter.”
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The steelmaker is giving shareholders a dividend of 5 cents per
share in the second quarter.
"We expect third quarter adjusted EBITDA in the
range of $275 million and $325 million, as recent pricing dynamics continue to
impact our business," Burritt said. "Our North American Flat-Rolled
segment results should soften slightly, as lower spot prices more than offset
continuing strength in our contract order book and lower spending. Our Mini
Mill segment results will likely reflect lower spot prices and $30 million of
related start-up and one-time construction costs ahead of a planned fourth
quarter start-up of Big River 2. In Europe, results are expected to be
consistent with the second quarter reflecting lower selling prices largely
offset by lower raw material costs. Our Tubular segment results should be lower
as selling prices decline in the third quarter.”
U.S. Steel posted $4.1 billion in sales in the second quarter, down
from $5 billion in the second quarter of 2023. The flat-rolled segment that
includes Gary Works and the Midwest Plant in Portage turned a $183 million
profit in the second quarter, down from $231 million in the second quarter of
2023.
“Separately, construction on BR2 is achieving key milestones as we
target start-up in the fourth quarter," Burritt said. "Also
at Big River, the recently commissioned dual galvalume/galvanized coating line
is ramping as expected. Galvanized coils are being delivered to customers and
the team is on-track to produce galvalume coils later this summer. You can find
additional details and photos of these Big River Steel projects in the investor
presentation posted today on our website.”
U.S. Steel continues to try to sell itself to Nippon Steel for
$14.9 billion, the highest bid after it got an unsolicited offer from
Cleveland-Cliffs.
“We continue to make progress on the U.S. regulatory processes
ahead of the anticipated closing of our transaction with Nippon Steel
Corporation later this year, which will bring advanced technologies to U. S.
Steel to support a stronger domestic steel industry with enhanced competition
and will strengthen national, economic, and job security," Burritt said.
