U.S. Steel Expects Significant Improvement in 2021

In Europe, customer demand and improved commercial performance and cost management are expected to offset higher iron ore prices, improving Q4 results compared to the third quarter.

The Tubular division remains subdued with higher rig counts not yet resulting in higher shipments. The company remains focused on conditions that are controllable including the start-up of the new electric arc furnace Nucor Tubular. The first rounds of seamless pipe were produced at the end of October and the in-sourcing of rounds has already resulted in improvement to the segment’s cost structure.

The company estimates a loss of $0.85 per diluted share for the quarter. Adjusted EBITDA, however, is expected to be positive at approximately $55 million, compared to an EBITDA loss of $49 million in the third quarter of 2020.

“Flat-rolled customer demand in the U.S. and Europe has improved throughout the fourth quarter, fueled by consumer-driven end-markets such as automotive, appliance, and packaging,” commented President and CEO David Burritt. “December’s performance has been particularly strong driven by the flow-through of higher steel prices, more nimble operations, and a continued focus on cost management. As a result, we have line of sight to significantly improved financial performance in 2021. Longer lead times, higher utilization rates, and higher input costs reflect current healthy steel demand and make us optimistic about the sustainability of today’s market environment.”