U. S. Steel Delivering on Strategic Commitments; Reports Solid Fourth Quarter and Second-Best Earnings in 2022

Business Wire
·8 min read

  • Fourth quarter 2022 net earnings of $174 million, or $0.68 per diluted share; full-year 2022 net earnings of $2.52 billion, or $9.16 per diluted share.

  • Fourth quarter 2022 adjusted net earnings of $226 million, or $0.87 per diluted share; full-year 2022 adjusted net earnings of $2.74 billion, or $9.95 per diluted share.

  • Fourth quarter 2022 adjusted EBITDA of $431 million; full-year 2022 adjusted EBITDA of $4.23 billion.

PITTSBURGH, February 02, 2023--(BUSINESS WIRE)--United States Steel Corporation (NYSE: X) reported fourth quarter 2022 net earnings of $174 million, or $0.68 per diluted share. Adjusted net earnings was $226 million, or $0.87 per diluted share and excluded the impact of a one-time signing bonus related to the United Steelworkers labor agreement and other one-time items detailed in the reconciliation of adjusted net earnings table. This compares to fourth quarter 2021 net earnings of $1.07 billion, or $3.75 per diluted share. Adjusted net earnings for the fourth quarter 2021 was $1.43 billion, or $5.01 per diluted share.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20230202005782/en/

Full-year 2022 net earnings was $2.52 billion, or $9.16 per diluted share. Adjusted net earnings was $2.74 billion, or $9.95 per diluted share and excluded the impact of asset impairments related to the permanent idling of the iron making process at the Company's Great Lakes Works, the impact of a one-time signing bonus related to the United Steelworkers labor agreement, and other one-time items detailed in the reconciliation of adjusted net earnings table. This compares to full-year 2021 net earnings of $4.17 billion, or $14.88 per diluted share. Adjusted net earnings for 2021 were $4.40 billion, or $15.69 per diluted share.

Commenting on the Company's performance, U. S. Steel President and Chief Executive Officer David B. Burritt said, "2022 was another exceptional year for U. S. Steel, marking our second-best financial performance in the Company’s history. Our fourth quarter results exceeded our guidance expectations thanks to the combined efforts of our domestic steelmaking operations and Tubular segment. This includes positive EBITDA in December at our Mini Mill segment, reflecting improving momentum through year-end while continuing to work through higher priced raw materials purchased earlier in 2022. Each of our operating segments contributed meaningfully to 2022’s success, while delivering record safety performance and strong operational excellence, quality, and reliability for our customers."

Burritt continued, "We are well-positioned for 2023. Our record cash and liquidity support a balanced capital allocation approach. We returned approximately $900 million to stockholders in 2022 and plan to continue rewarding stockholders in 2023 while investing in the business. We are already delivering on strategic commitments, including the Gary Works pig iron machine that was commissioned ahead of schedule and on-budget. Later this year, our non-grain oriented electrical steel line at Big River Steel will begin producing advanced steel grades to meet the growing electric vehicle demand. 2023 is a pivotal year in our strategy and we look forward to demonstrating continued progress towards our Best for All future."

Earnings Highlights

Three Months Ended

December 31,

Twelve Months Ended

December 31,

(Dollars in millions, except per share amounts)

2022

2021

2022

2021

Net Sales

$

4,338

$

5,622

$

21,065

$

20,275

Segment earnings (loss) before interest and income taxes

Flat-Rolled

159

890

1,951

2,630

Mini Mill (a)

(68

)

366

481

1,206

U. S. Steel Europe

(68

)

269

444

975

Tubular

205

30

544

1

Other

6

(31

)

22

(11

)

Total segment earnings before interest and income taxes

$

234

$

1,524

$

3,442

$

4,801

Other items not allocated to segments

(60

)

(379

)

(282

)

145

Earnings before interest and income taxes

$

174

$

1,145

$

3,160

$

4,946

Net interest and other financial (benefits) costs

(51

)

130

(99

)

602

Income tax expense (benefit)

51

(54

)

735

170

Net earnings

$

174

$

1,069

$

2,524

$

4,174

Earnings per diluted share

$

0.68

$

3.75

$

9.16

$

14.88

Adjusted net earnings (b)

$

226

$

1,430

$

2,742

$

4,400

Adjusted net earnings per diluted share (b)

$

0.87

$

5.01

$

9.95

$

15.69

Adjusted earnings before interest, income taxes, depreciation and amortization (EBITDA) (b)

$

431

$

1,728

$

4,233

$

5,592

(a) The Mini Mill segment was added after January 15, 2021 with the purchase of the remaining equity interest in Big River Steel.

(b) Please refer to the non-GAAP Financial Measures section of this document for the reconciliation of these amounts.

The Company will conduct a conference call on the fourth quarter and full-year 2022 earnings on Friday, February 3, 2023, at 8:30 a.m. Eastern. To listen to the webcast of the conference call and to access the Company's slide presentation, visit the U. S. Steel website, www.ussteel.com, and click on the "Investors" section. Replay will be available on the website after 10:30 a.m. on February 3, 2023.

UNITED STATES STEEL CORPORATION

PRELIMINARY SUPPLEMENTAL STATISTICS (Unaudited)

Three Months Ended
December 31,

Twelve Months Ended
December 31,

2022

2021

2022

2021

OPERATING STATISTICS

Average realized price: ($/net ton unless otherwise noted) (a)

Flat-Rolled

1,086

1,432

1,261

1,172

Mini Mill (b)

786

1,490

1,134

1,314

U. S. Steel Europe

957

1,075

1,090

966

U. S. Steel Europe (€/net ton)

942

940

1,029

816

Tubular

3,616

1,968

2,978

1,696

Steel shipments (thousands of net tons): (a)

Flat-Rolled

1,885

2,032

8,373

9,018

Mini Mill (b)

636

559

2,287

2,230

U. S. Steel Europe

715

1,028

3,759

4,302

Tubular

133

127

523

444

Total Steel Shipments

3,369

3,746

14,942

15,994

Intersegment steel (unless otherwise noted) shipments (thousands of net tons):

Flat-Rolled to USSE (iron ore pellets and fines and coal)

—

—

144

439

Flat-Rolled to USSE

—

—

30

—

Flat-Rolled to Mini Mill

—

—

30

—

Mini Mill (b) to Flat-Rolled

36

88

288

388

Raw steel production (thousands of net tons):

Flat-Rolled

1,952

2,181

8,846

9,881

Mini Mill (b)

683

681

2,650

2,688

U. S. Steel Europe

589

1,181

3,839

4,931

Tubular

137

140

634

464

Raw steel capability utilization: (c)

Flat-Rolled

59

%

51

%

67

%

58

%

Mini Mill (b)

82

%

82

%

80

%

81

%

U. S. Steel Europe

47

%

94

%

77

%

99

%

Tubular

60

%

62

%

70

%

52

%

CAPITAL EXPENDITURES (dollars in millions)

Flat-Rolled

138

150

503

422

Mini Mill (b)

449

229

1,159

331

U. S. Steel Europe

37

18

90

57

Tubular

7

5

17

51

Other Businesses

—

1

—

2

Total

$

631

$

403

$

1,769

$

863

(a) Excludes intersegment shipments.

(b) The Mini Mill segment was added after January 15, 2021 with the purchase of the remaining equity interest in Big River Steel.

(c) 2022 based on annual raw steel production capability of 13.2 million net tons for Flat-Rolled, 3.3 million for Mini Mill, 5.0 million net tons for U. S. Steel Europe and 0.9 million for Tubular. 2021 based on annual raw steel production capability of 17.0 million net tons for Flat-Rolled, 3.3 million for Mini Mill, 5.0 million net tons for U. S. Steel Europe and 0.9 million for Tubular.

UNITED STATES STEEL CORPORATION

CONDENSED STATEMENT OF OPERATIONS (Unaudited)

Three Months Ended

December 31,

Twelve Months Ended

December 31,

(Dollars in millions, except per share amounts)

2022

2021

2022

2021

Net Sales

$

4,338

$

5,622

$

21,065

$

20,275

Operating expenses (income):

Cost of sales

3,934

3,900

16,777

14,533

Selling, general and administrative expenses

98

110

422

426

Depreciation, depletion and amortization

197

204

791

791

Earnings from investees

(41

)

(64

)

(243

)

(170

)

Gain on sale of Transtar

—

—

—

(506

)

Asset impairment charges

6

245

163

273

Restructuring and other charges

(9

)

91

48

128

Gain on equity investee transactions

(6

)

—

(6

)

(111

)

Net (gains) losses on sale of assets

(2

)

1

(12

)

(7

)

Other gains, net

(13

)

(10

)

(35

)

(28

)

Total operating expenses

4,164

4,477

17,905

15,329

Earnings before interest and income taxes

174

1,145

3,160

4,946

Net interest and other financial (benefits) costs

(51

)

130

(99

)

602

Earnings before income taxes

225

1,015

3,259

4,344

Income tax expense (benefit)

51

(54

)

735

170

Net earnings

174

1,069

2,524

4,174

Less: Net earnings attributable to noncontrolling interests

—

—

—

—

Net earnings attributable to United States Steel Corporation

$

174

$

1,069

$

2,524

$

4,174

COMMON STOCK DATA:

Net earnings per share attributable to United States Steel Corporation Stockholders

Basic

$

0.75

$

3.97

$

10.22

$

15.77

Diluted

$

0.68

$

3.75

$

9.16

$

14.88

Weighted average shares, in thousands

Basic

232,558

268,995

246,986

264,667

Diluted

262,703

285,321

276,963

280,444

Dividends paid per common share

$

0.05

$

0.05

$

0.20

$

0.08

UNITED STATES STEEL CORPORATION

CONDENSED CASH FLOW STATEMENT (Unaudited)

Twelve Months Ended December 31,

(Dollars in millions)

2022

2021

Increase (decrease) in cash, cash equivalents and restricted cash

Operating activities:

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