Steel Mills
U.S. Steel Q2 Profits Dip on Lower Sheet Prices
Written by Michael Cowden
July 27, 2023
U.S. Steel recorded lower profits in Q2’23 compared to Q2’22 on the heels of a drop in steel prices and a dip in shipments.
The Pittsburgh-based steelmaker reported net income of $477 million in Q2’23, down 51% from $978 million in Q2’22 on sales that fell 20% to $5.01 billion over the same period.
The company recorded shipments of 3.97 million tons in Q2’23, down 5% from 4.18 million tons in Q2’22, according to earnings figures released after market close on Thursday, July 27.
U.S. Steel
Fourth quarter ended June 30 | 2023 | 2022 | % Change |
---|---|---|---|
Net sales | $5,008 | $6,290 | -20% |
Net income (loss) | $477 | $978 | -51% |
Per diluted share | $1.89 | $3.42 | -45% |
Full year ended June 30 | |||
Net sales | $9,478 | $11,524 | -18% |
Net income (loss) | $676 | $1,860 | -64% |
Per diluted share | $2.67 | $6.45 | -59% |
One example of lower prices: U.S. Steel’s flat-rolled mills posted an average sales price of $1,088 per ton ($54.40 per cwt) in Q2’23, down 19% from $1,339 per ton in Q2’22.
U.S. Steel president and CEO David Burritt said it was nonetheless a “strong result” and stressed that the company continued to press forward with its growth plans.
Case in point: U.S. Steel is commissioning the non-grain oriented (NGO) electrical steel line at its Big River Steel electric-arc furnace (EAF) mill in Arkansas. The line is scheduled to start up later in the third quarter, Burritt said.
“Customer demand has been robust for our NGO steels, and we are pleased to announce that we’ve already secured our first customer orders in both industrial and electric vehicle markets,” he added.
The company, as is standard practice, did not name those customers.
Michael Cowden
Read more from Michael CowdenLatest in Steel Mills
SDI presses on with steel, aluminum investments
Steel Dynamics Inc. remains optimistic about its prospects as it ramps up flat-rolled steel operations and prepares for the production of aluminum products next year. Executives from the Fort Wayne, Ind.-based steelmaker provided an update on the company’s operations on a conference call on Thursday held to discuss SDI’s third-quarter earnings results.
CMC earnings slide, but still near top mark
CMC Fourth quarter ended Aug. 31 2024 2023 Change Net sales $1,996.1 $2,209.2 -9.6% Net income (loss) $103.9 $184.2 -43.6% Per diluted share $0.90 $1.56 -42.3% Full year ended Aug. 31 Net sales $7,925.9 $8,799.5 -9.9% Net income (loss) $485.5 $859.7 -43.5% Per diluted share $4.14 $7.25 -42.9% (in millions of dollars except per share) […]
SDI posts lower Q3 profit, sees better times in ’25
Steel Dynamics Inc. (SDI) reported a drop in third-quarter profits driven largely by lower flat-rolled steel prices. The Fort Wayne, Ind.-based electric arc furnace (EAF) steelmaker also saw scrap prices slip. That happened because of softer demand from domestic mills taking planned maintenance outages.
Cliffs hosts fireside chat on industry, union, government collaboration
Cleveland-Cliffs’s Chairman, President, and CEO Lourenco Goncalves hosted a fireside chat with US Trade Representative Katherine Tai and Acting Secretary of Labor Julie Su on Friday at the company’s plate mill in Coatesville, Pa.
Nippon agrees to sell Calvert stake, if USS deal closes
ArcelorMittal is set to take full ownership of AM/NS Calvert if Nippon Steel finalizes its pending acquisition of U.S. Steel.