Steel Mills

USS Posts Modest Q2 Earns Dip on 'Softer' Auto, Appliance Demand

Written by Michael Cowden


US Steel recorded modestly lower profits in the second quarter of 2022 compared to the same quarter last year.

But the Pittsburgh-based steelmaker remains optimistic about its long-term prospects thanks to the diverse end markets it serves.

US Steel“We are bullish on US Steel’s future and confident in our ability to execute,” company president and CEO David Burritt said. “While some consumer-oriented markets like automotive and appliance are softer, line pipe and energy demand is accelerating.”

Burritt made the comments in a press release announcing the company’s second quarter earnings results on Thursday, July 28.

All told, US Steel recorded a profit of $978 million in the second quarter of 2022, down 3.4% from $1.01 billion in the same quarter last year. The dip in profits came despite sales increasing 25.2% to $6.29 billion over the same comparison.

Total steel shipments also slipped. They were 4.18 million tons for the second quarter of this year, down 0.7% from 4.21 million tons in the year-ago quarter

The slight decline in shipments was largely the result of US Steel’s operations in Kosice, Slovakia. It’s US flat-rolled and tubular operations posted increased or roughly flat shipments.

Burritt acknowledged that European markets were struggling: “Our Slovakian operations are navigating challenging conditions and continuing to implement resiliency plans and cost mitigation actions in the event of continued economic slowdown in the region,” he said.

By Michael Cowden, Michael@SteelMarketUpdate.com

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