Steel Mills

USS: Increased Headwinds a Considerable Drag on Q3 Results
Written by David Schollaert
September 15, 2022
US Steel Corp. expects its performance to be substantially lower sequentially for its third quarter ending Sept. 30.
The Pittsburgh-based steelmaker anticipates adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of approximately $825 million in Q3, according to earnings guidance figures released on Thursday, Sept. 15.
That’s down nearly 50% from second quarter EBITDA of $1.62 billion and nearly 60% lower than its record EBITDA of $2.027 billion in Q3 2021, US Steel said.
“We continue to operate from a position of strength and are better prepared to create value in today’s market than ever before,” said David Burritt, US Steel’s president and CEO. “Our key projects remain on time and on budget, and we continued to return cash to stockholders in the quarter.”
The company’s downgraded results come as Q3 earnings have been significantly impacted by “market headwinds that have accelerated over the quarter,” said Burritt, including weaker demand, lower shipment volumes, and significantly reduced selling prices.
US Steel has adjusted its integrated steelmaking operating footprint as a result, “to better match our order book and [we] expect our tubular segment to deliver another quarter of earnings growth,” he added.
The steelmaker repaid over $3 billion of debt, extended its maturity profile, and grew its cash position to pre-fund its strategy, US Steel said.
By David Schollaert, David@SteelMarketUpdate.com
 
			    			
			    		David Schollaert
Read more from David SchollaertLatest in Steel Mills
 
		                                Ternium swings to Q3 loss, eyes 2026 recovery
Ternium closed the third quarter with steady shipments and improving margins. But trade policy uncertainty and subdued demand in Mexico weighed on the Latin American steelmaker’s results.
 
		                                Algoma’s losses widen in Q3 as tariff troubles continue
Algoma Steel’s net loss more than quadrupled in the third quarter on trade woes and its EAF transition. Separately, the company announced a change in leadership, as CEO Michael Garcia will retire at the end of the year.
 
		                                Cliffs, POSCO announce MoU for ‘transformative’ partnership
Cleveland-Cliffs on Thursday said it had signed a memorandum of understanding (MoU) with POSCO to forge a strategic partnership, one Cliffs bills as "transformative."
 
		                                Cliffs touts steel stamping solution to replace aluminum in automotive
Cliffs said it successfully completed a defect-free trial production of exposed steel parts using aluminum-forming equipment in collaboration with an unnamed OEM,
 
		                                Nucor navigates mixed flat-rolled markets with strategic muscle
Nucor entered the fourth quarter with clear forward momentum: stronger-than-expected results, solid sheet and plate demand, and construction progress on a major new mill that should add capacity next year.
