United States Steel Corporation Provides First Quarter 2024 Guidance
Commenting on first quarter guidance President and Chief Executive Officer
Burritt concluded, “We are entering the final stretch of our in-flight Best for All® strategic investments. Our
First Quarter Adjusted EBITDA Commentary
The Flat-Rolled segment’s adjusted EBITDA is expected to be higher than the fourth quarter. Higher spot steel prices are expected to be reflected in the segment’s average selling prices further supported by the favorable impact from fixed-priced contracts negotiated for 2024. These tailwinds are expected to be partially offset by typical seasonal mining operations headwinds experienced in the first quarter.
The European segment’s adjusted EBITDA is expected to be higher than the fourth quarter. Higher steel prices are expected to be reflected in the segment’s average selling prices. Additionally, lower energy costs and management cost improvements should improve the segment’s financial performance.
The Tubular segment’s adjusted EBITDA is expected to be lower than the fourth quarter. Lower selling prices are expected to negatively impact the segment’s financial performance. Additionally, lower shipment volumes are anticipated as rig counts remain stagnant and natural gas demand softens due to a mild winter.
NON-GAAP FINANCIAL MEASURES RECONCILIATION OF ADJUSTED EBITDA GUIDANCE |
||||
(Dollars in millions) |
|
|||
Reconciliation to Projected Adjusted EBITDA Included in Guidance |
Q1 2024 |
|||
Projected net earnings attributable to |
$ |
160 |
|
|
Estimated income tax provision |
|
40 |
|
|
Estimated net interest and other financial costs (income) |
|
(45 |
) |
|
Estimated depreciation, depletion, and amortization |
|
210 |
|
|
Projected EBITDA included in guidance |
$ |
365 |
|
|
Estimated adjustments |
|
60 |
|
|
Projected adjusted EBITDA included in guidance |
$ |
425 |
|
|
NON-GAAP FINANCIAL MEASURES RECONCILIATION OF ADJUSTED NET EARNINGS GUIDANCE |
||||
(Dollars in millions, except per share amounts) |
||||
Reconciliation to Projected Adjusted Net Earnings Attributable to U. S. Steel Included in Guidance |
Q1 2024 |
|||
Projected net earnings attributable to |
|
$ |
160 |
|
Estimated adjustments |
|
45 |
||
Projected adjusted net earnings attributable to |
$ |
205 |
||
Reconciliation to Projected Adjusted Net Earnings Per Diluted Share Included in Guidance |
Q1 2024 |
|||
Projected net earnings per diluted share included in guidance (mid-point of guidance) |
$ |
0.64 |
||
Estimated adjustments |
|
0.18 |
||
Projected adjusted net earnings per diluted share included in guidance (mid-point of guidance) |
$ |
0.82 |
||
Note: This reconciliation excludes the impact of the Company's quarterly adjustment related to the surplus VEBA assets. See Note 18 in the Company's Annual Report on Form 10-K for the year ended
Cautionary Note Regarding Forward-Looking Statements
This communication contains information regarding the Company and NSC that may constitute “forward-looking statements,” as that term is defined under the Private Securities Litigation Reform Act of 1995 and other securities laws, that are subject to risks and uncertainties. We intend the forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in those sections. Generally, we have identified such forward-looking statements by using the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “target,” “forecast,” “aim,” “should,” “plan,” “goal,” “future,” “will,” “may” and similar expressions or by using future dates in connection with any discussion of, among other things, statements expressing general views about future operating or financial results, operating or financial performance, trends, events or developments that we expect or anticipate will occur in the future, anticipated cost savings, potential capital and operational cash improvements and changes in the global economic environment, the construction or operation of new or existing facilities or capabilities, statements regarding our greenhouse gas emissions reduction goals, as well as statements regarding the proposed transaction, including the timing of the completion of the transaction. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. Forward-looking statements include all statements that are not historical facts, but instead represent only the Company’s beliefs regarding future goals, plans and expectations about our prospects for the future and other events, many of which, by their nature, are inherently uncertain and outside of the Company’s or NSC’s control. It is possible that the Company’s or NSC’s actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. Management of the Company or NSC, as applicable, believes that these forward-looking statements are reasonable as of the time made. However, caution should be taken not to place undue reliance on any such forward-looking statements because such statements speak only as of the date when made. In addition, forward looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from the Company’s or NSC’s historical experience and our present expectations or projections. Risks and uncertainties include without limitation: the ability of the parties to consummate the proposed transaction on a timely basis or at all; the timing, receipt and terms and conditions of any required governmental and regulatory approvals of the proposed transaction; the occurrence of any event, change or other circumstances that could give rise to the termination of the definitive agreement and plan of merger relating to the proposed transaction (the “Merger Agreement”); the possibility that the Company’s stockholders may not approve the proposed transaction; the risks and uncertainties related to securing the necessary stockholder approval; the risk that the parties to the Merger Agreement may not be able to satisfy the conditions to the proposed transaction in a timely manner or at all; risks related to disruption of management time from ongoing business operations due to the proposed transaction; certain restrictions during the pendency of the proposed transaction that may impact the Company’s ability to pursue certain business opportunities or strategic transactions; the risk that any announcements relating to the proposed transaction could have adverse effects on the market price of the Company’s common stock or NSC’s common stock or American Depositary Receipts; the risk of any unexpected costs or expenses resulting from the proposed transaction; the risk of any litigation relating to the proposed transaction; the risk that the proposed transaction and its announcement could have an adverse effect on the ability of the Company or NSC to retain customers and retain and hire key personnel and maintain relationships with customers, suppliers, employees, stockholders and other business relationships and on its operating results and business generally; and the risk the pending proposed transaction could distract management of the Company. The Company directs readers to its Quarterly Report on Form 10-Q for the quarter ended
Additional Information and Where to Find It
This communication relates to the proposed transaction between the
The Company’s stockholders will be able to obtain free copies of the definitive Proxy Statement, as well as other documents containing important information about the Company, NSC and the proposed transaction once such documents are filed with the
Participants in the Solicitation
NSC, the Company and their directors, and certain of their executive officers and employees may be deemed to be participants in the solicitation of proxies from the Company’s stockholders in respect of the proposed transaction. Information regarding the directors and executive officers of the Company who may, under the rules of the
Note Regarding Non-GAAP Financial Measures
We present adjusted net earnings, adjusted net earnings per diluted share, earnings before interest, income taxes, depreciation and amortization (EBITDA) and adjusted EBITDA, which are non-GAAP measures, as additional measurements to enhance the understanding of our operating performance. We believe that EBITDA, considered along with net earnings, is a relevant indicator of trends relating to our operating performance and provides management and investors with additional information for comparison of our operating results to the operating results of other companies.
Adjusted net earnings, adjusted net earnings per diluted share and adjusted EBITDA are non-GAAP measures that exclude certain charges that are not part of the Company’s core operations such as restructuring or asset impairments (Adjustment Items). We present adjusted net earnings, adjusted net earnings per diluted share and adjusted EBITDA to enhance the understanding of our ongoing operating performance and established trends affecting our core operations by excluding the effects of events that can obscure underlying trends. U. S. Steel’s management considers adjusted net earnings, adjusted net earnings per diluted share and adjusted EBITDA as alternative measures of operating performance and not alternative measures of the Company's liquidity and believes these measures are useful to investors by facilitating a comparison of our operating performance to the operating performance of our competitors. Additionally, the presentation of adjusted net earnings, adjusted net earnings per diluted share and adjusted EBITDA provides insight into management’s view and assessment of the Company’s ongoing operating performance because management does not consider the Adjustment Items when evaluating the Company’s financial performance. Adjusted net earnings, adjusted net earnings per diluted share and adjusted EBITDA should not be considered a substitute for net earnings, earnings per diluted share or other financial measures as computed in accordance with
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Corporate Communications
T – (412) 433-1300
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