United States Steel Corporation Reports Fourth Quarter and Full-Year 2021 Results

·8 min read
  • Fourth quarter 2021 net earnings of $1.069 billion, or $3.75 per diluted share; full-year 2021 net earnings of $4.174 billion, or $14.88 per diluted share.

  • Fourth quarter 2021 adjusted net earnings of $1.038 billion, or $3.64 per diluted share; full-year 2021 adjusted net earnings of $3.780 billion, or $13.48 per diluted share.

  • Fourth quarter 2021 adjusted EBITDA of $1.728 billion; full-year 2021 adjusted EBITDA of $5.592 billion.

  • Liquidity of $4.971 billion, including cash of $2.522 billion.

PITTSBURGH, January 27, 2022--(BUSINESS WIRE)--United States Steel Corporation (NYSE: X) reported fourth quarter 2021 net earnings of $1.069 billion, or $3.75 per diluted share. Adjusted net earnings was $1.038 billion, or $3.64 per diluted share. This compares to fourth quarter 2020 net earnings of $49 million, or $0.22 per diluted share. Adjusted net loss for the fourth quarter 2020 was $60 million, or $0.27 per diluted share.

Full-year 2021 net earnings was $4.174 billion, or $14.88 per diluted share. Adjusted net earnings was $3.780 billion, or $13.48 per diluted share. This compares to full-year 2020 net loss of $1.165 billion, or $5.92 per diluted share. Adjusted net loss for 2020 were $920 million, or $4.67 per diluted share.

Earnings Highlights

Quarter Ended

Year Ended

December 31,

December 31,

(Dollars in millions, except per share amounts)

2021

2020

2021

2020

Net Sales

$

5,622

$

2,562

$

20,275

$

9,741

Segment earnings (loss) before interest and income taxes

Flat-Rolled

$

890

$

(73

)

$

2,630

$

(596

)

Mini Mill (a)

366

1,206

U. S. Steel Europe

269

36

975

9

Tubular (b)

30

(32

)

1

(179

)

Other

(31

)

(6

)

(11

)

(39

)

Total segment earnings (loss) before interest and income taxes

$

1,524

$

(75

)

$

4,801

$

(805

)

Other items not allocated to segments

(379

)

118

145

(270

)

Earnings (loss) before interest and income taxes

$

1,145

$

43

$

4,946

$

(1,075

)

Net interest and other financial costs

130

88

602

232

Income tax (benefit) expense

(54

)

(94

)

170

(142

)

Net earnings (loss)

$

1,069

$

49

$

4,174

$

(1,165

)

Earnings (loss) per diluted share

$

3.75

$

0.22

$

14.88

$

(5.92

)

Adjusted net earnings (loss) (c)

$

1,038

$

(60

)

$

3,780

$

(920

)

Adjusted net earnings (loss) per diluted share (c)

$

3.64

$

(0.27

)

$

13.48

$

(4.67

)

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

$

1,728

$

87

$

5,592

$

(162

)

(a) Mini Mill segment, added after January 15, 2021 with the purchase of the remaining equity interest in Big River Steel, does not include the electric arc furnace (EAF) at our Fairfield Tubular Operations in Fairfield, Alabama.

(b) The Fairfield EAF is included in the Tubular segment.

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

"2021 was a year of records and we delivered with record earnings and free cash flow and record safety, environmental, quality, and reliability performance," commented U. S. Steel President and CEO David B. Burritt. "We enter 2022 from a position of strength and are relentlessly focused on continuing our disciplined approach to creating stockholder value. Our balance sheet has been transformed, record cash significantly de-risks strategy execution, and our capital allocation priorities have enhanced direct stockholder returns. We are a fundamentally different company from a year ago and expect 2022 to be another strong year."

Commenting on the Company's Best for All℠ strategy, Burritt continued, "Through our Best for All customer-centric strategy, U. S. Steel continues to gain market share with our clear competitive advantages: low-cost iron ore, mini mill steelmaking, and best-in-class finishing capabilities. 2022 will be another year of strategic progress and upon completion, our announced strategic investments will deliver approximately $850 million of incremental through-cycle earnings power with winning customer solutions while reducing our capital and carbon intensity. We are becoming a better, not bigger company as we continue to innovate and develop the next generation of our sustainable steel solutions for our people and our planet."

Capital Allocation Update:

During the fourth quarter 2021, the Company repurchased $150 million of its common stock under the $300 million stock buyback authorization announced in October 2021. In addition, the Board of Directors has authorized a new $500 million stock repurchase program to commence in the first quarter 2022 under which the Company’s outstanding common stock may be repurchased from time to time at the discretion of management.

"We have never been more confident in our Best for All strategy," concluded Burritt, "as we reward stockholders with a new $500 million stock buyback authorization as part of a balanced capital allocation approach. This is in addition to our previously announced $300 million authorization and our continued $0.05 per share quarterly dividend. We look forward to another year of progress for investors, customers, employees, and the communities where we live and work."

*****

The Company will conduct a conference call on the fourth quarter and full-year 2021 earnings on Friday, January 28, 2022, at 8:30 a.m. Eastern Standard. 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. Replays of the conference call will be available on the website after 10:30 a.m. on January 28, 2022.

UNITED STATES STEEL CORPORATION

PRELIMINARY SUPPLEMENTAL STATISTICS (Unaudited)

Quarter Ended

Year Ended

December 31,

December 31,

2021

2020

2021

2020

OPERATING STATISTICS

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

Flat-Rolled

1,432

731

1,172

718

Mini Mill (b)

1,490

1,314

U. S. Steel Europe

1,075

652

966

626

U. S. Steel Europe (€/net ton)

940

547

816

549

Tubular

1,968

1,267

1,696

1,271

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

Flat-Rolled

2,032

2,257

9,018

8,711

Mini Mill (b)

559

2,230

U. S. Steel Europe

1,028

840

4,302

3,041

Tubular

127

74

444

464

Total Steel Shipments

3,746

3,171

15,994

12,216

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

Flat-Rolled to Tubular

101

Flat-Rolled to U. S. Steel Europe (iron ore pellets and fines)

506

439

1,418

Mini Mill (b) to Flat-Rolled

88

388

Raw steel production (thousands of net tons):

Flat-Rolled

2,181

2,490

9,881

9,313

Mini Mill (b)

681

2,688

U. S. Steel Europe

1,181

966

4,931

3,366

Tubular (c)

140

16

464

16

Raw steel capability utilization:(d)

Flat-Rolled

51

%

58

%

58

%

55

%

Mini Mill (b)

82

%

%

81

%

%

U. S. Steel Europe

94

%

77

%

99

%

67

%

Tubular

62

%

7

%

52

%

7

%

CAPITAL EXPENDITURES (dollars in millions)

Flat-Rolled

150

93

422

484

Mini Mill (b) (e)

229

331

U. S. Steel Europe

18

15

57

79

Tubular

5

26

51

159

Other

1

2

3

Total

$

403

$

134

$

863

$

725

(a) Excludes intersegment shipments.

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

(c) Tubular segment raw steel added in October 2020 with the start-up of the new electric arc furnace.

(d) 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 net tons for Tubular.

(e) Includes Mini Mill #2 capital expenditures of $144 million for the three and twelve months ended December 31, 2021.

UNITED STATES STEEL CORPORATION

CONDENSED STATEMENT OF OPERATIONS (Unaudited)

Quarter Ended

Year Ended

December 31,

December 31,

(Dollars in millions, except per share amounts)

2021

2020

2021

2020

NET SALES

$

5,622

$

2,562

$

20,275

$

9,741

Operating expenses (income):

Cost of sales (excludes items shown below)

3,900

2,381

14,533

9,555

Selling, general and administrative expenses

110

78

426

277

Depreciation, depletion and amortization

204

162

791

643

(Earnings) Loss from investees

(64

)

39

(170

)

117

Gain on sale of Transtar

(506

)

Asset impairment charges

245

273

263

Gain on equity investee transactions

(111

)

(31

)

Restructuring and other charges

91

8

128

138

Net losses (gains) on sale of assets

1

(147

)

(7

)

(149

)

Other (gains) losses, net

(10

)

(2

)

(28

)

3

Total operating expenses

4,477

2,519

15,329

10,816

EARNINGS (LOSS) BEFORE INTEREST AND INCOME TAXES

1,145

43

4,946

(1,075

)

Net interest and other financial costs

130

88

602

232

EARNINGS (LOSS) BEFORE INCOME TAXES

1,015

(45

)

4,344

(1,307

)

Income tax (benefit) expense

(54

)

(94

)

170

(142

)

Net earnings (loss)

1,069

49

4,174

(1,165

)

Less: Net earnings (loss) attributable to noncontrolling interests

NET EARNINGS (LOSS) ATTRIBUTABLE TO UNITED STATES STEEL CORPORATION

$

1,069

$

49

$

4,174

$

(1,165

)

COMMON STOCK DATA:

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