Steel Mills
USS: Increased Headwinds a Considerable Drag on Q3 Results
Written by David Schollaert
September 15, 2022
US Steel Corp. expects its performance to be substantially lower sequentially for its third quarter ending Sept. 30.
The Pittsburgh-based steelmaker anticipates adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of approximately $825 million in Q3, according to earnings guidance figures released on Thursday, Sept. 15.
That’s down nearly 50% from second quarter EBITDA of $1.62 billion and nearly 60% lower than its record EBITDA of $2.027 billion in Q3 2021, US Steel said.
“We continue to operate from a position of strength and are better prepared to create value in today’s market than ever before,” said David Burritt, US Steel’s president and CEO. “Our key projects remain on time and on budget, and we continued to return cash to stockholders in the quarter.”
The company’s downgraded results come as Q3 earnings have been significantly impacted by “market headwinds that have accelerated over the quarter,” said Burritt, including weaker demand, lower shipment volumes, and significantly reduced selling prices.
US Steel has adjusted its integrated steelmaking operating footprint as a result, “to better match our order book and [we] expect our tubular segment to deliver another quarter of earnings growth,” he added.
The steelmaker repaid over $3 billion of debt, extended its maturity profile, and grew its cash position to pre-fund its strategy, US Steel said.
By David Schollaert, David@SteelMarketUpdate.com
David Schollaert
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