US Steel CEO says company ‘getting better, not bigger’

The company posted record earnings for its recently completed quarter.

U.S. Steel EAF

Photo courtesy of U.S. Steel

United States Steel Corp. (U.S. Steel), headquartered in Pittsburgh, has announced a number of records in its recently completed third quarter, including net earnings; earnings before interest, taxes, depreciation and amortization (EBITDA); EBITDA margin; and liquidity, company President and Chief Executive Officer David B. Burritt says.

The company reported third-quarter net earnings of $2 billion, or $6.97 per diluted share. Adjusted net earnings totaled $1.54 billion, or $5.36per diluted share. This compares with the third-quarter 2020, when the company reported a net loss of $234 million, or $1.06 per diluted share. The adjusted net loss for the third quarter of 2020 was $268 million, or $1.21 per diluted share.

U.S. Steel’s net sales totaled $5,964 million for the quarter and $14,653 million for the first nine months of the year. In 2020, quarterly net sales were $2,340 million and $7,179 million for the nine-month period.

The company's Flat-Rolled segment posted $1,135 million in EBITDA for the quarter, while its Mini Mill segment (excluding the Fairfield, Alabama, electric arc furnace, which is reported in its tubular segment) posted $464 million in EBITDA and its Tubular segment posted $11 million in EBITDA.

Burritt says, “Our balance sheet has been transformed, and the cash flow generation of the business has us highly confident in our ability to prefund organic growth investments that will expand our existing competitive advantages. We are getting to our Best for All future faster.”

U.S. Steel’s Best for All strategy involves achieving net-zero carbon emissions by 2050, which builds on its 2030 goal to reduce greenhouse gas emissions intensity by 20 percent based on a 2018 baseline. The company also launched verdeX sustainable steel, which contains up to 90 percent recycled content and is produced with a carbon footprint that’s 75 percent lower than comparable products made through integrated steelmaking.

Regarding U.S. Steel’s strategy, he says, “It's not either investing in our business or returning capital directly to stockholders, it's both. Our future now includes a $300 million stock repurchase program and 5 cents per share quarterly dividend to begin directly rewarding stockholders for the progress we have made so far. We are confident in the long-term value our new, highly capable minimill will create as it further expands our competitive advantage to produce sustainable and differentiated steel. We are getting better, not bigger, by building on our Mini Mill segment's industry-leading performance to create a business model that will continue to reward stockholders into the future.”

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