U.S. Steel’s performance in the first quarter of 2020 was better than expected with adjusted EBITDA projected at $30 million.
“Our Flat-rolled segment results are expected to be better than anticipated as strong operating performance across our footprint, continued cost improvement, and seasonally strong shipment volumes more than offset the typical seasonality of mining,” said President and CEO David Burritt.
“Additionally, the domestic flat-rolled steel market has remained healthy throughout the first quarter to date. Extended lead times are supported by robust construction end-market demand and an end to destocking that negatively impacted order rates throughout 2019.”
U.S. Steel Tubular continued to be challenged by lower low oil prices and rig counts. “We are continuing to monitor the recent change in market conditions with respect to our Tubular business and will evaluate the impact on the carrying value of the net assets of this business,” said U.S. Steel.
As announced, U.S. Steel will begin the indefinite idling of steel operations at Great Lakes Works in April as well as starting a scheduled 48-day maintenance outage at Gary Works blast furnace #4.
Commenting on the COVID-19 crisis, Burritt added, “We continue to monitor the impacts of the coronavirus and are following policies and procedures recommended by health and government officials to ensure our employees are working in a safe and healthy environment. We understand the situation remains fluid and we are preparing our operations to be flexible as circumstances may warrant.
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