Corporation (USS) is reporting net earnings of $214 million or $1.20 per
diluted share in the second quarter of 2018, compared to $18 million or 10
cents in the first quarter and $261 million or $1.48 in the year-ago period.
“In the second
quarter, our team performed well by responding quickly to customer demand,”
USS President and CEO David Burnett said. “We re-started steelmaking at
Granite City ahead of schedule and safely ramped up production and shipments
faster than planned. In addition, a very strong shipping performance in late
June enabled us to deliver higher than expected earnings.”
“The success to
date of our ongoing $2 billion asset revitalization program, as well as our
earnings power in the current market, makes us increasingly optimistic about
future investments that will drive long-term profitable growth.”
company is projecting adjusted EBITDA in the third quarter (earnings before
interest, taxes, depreciation, and amortization) of $525 million. “We expect
our flat-rolled segment results to continue to improve as more of our
adjustable contract and spot shipments realize the benefit of second quarter
increases in index prices, partially offset by higher planned outage costs.
We expect results for our tubular segment to turn positive as selling price
increases catch up to the rising substrate costs we saw in the first half of
the year. We expect results for our European segment to be lower in the
third quarter, primarily due to planned outages that coincide with normal
seasonal customer demand patterns.”
USS increased its
full-year adjusted EBITDA guidance to approximately $1.85 to $1.9 billion.
segment earnings: $224 million ($33 million in 1Q, $220 million in the
* U.S. Steel Europe
(USSE) earnings: $115 million ($110 in 1Q, $55 million in the year-ago).
* Tubular segment
earnings: a loss of $35 million (a loss of $27 million in 1Q, a loss of $28
million in the year-ago).
* Other business
segment earnings: $17 million ($11 million in 1Q, $9 million in the
* Average realized
price per net ton of flat-rolled: $819 ($740 in 1Q, $742 in the year-ago).
* Total USS and
USSE shipments: 3.94 million net tons (3.84 million in 1Q, 3.83 million in
capability at U.S. facilities: 67 percent (66 percent in 1Q, 64 percent in
* Raw flat-rolled
steel production at U.S. facilities: 2.84 million net tons (2.78 million in
1Q, 2.71 million in the year-ago).
capital expenditures: $142 million ($176 million in 1Q, $47 million in the
shipments of flat-rolled to tubular: 65,000 net tons (67,000 net tons in 1Q,
94,000 net tons in the year-ago).
* Net sales: $3.6
billion ($3.14 billion in 1Q, $3.14 billion in the year-ago).