SMU Data and Models
US Steel Posts Lower Q4 Profit, Restarts Mon Valley #3 Furnace
Written by Michael Cowden
February 2, 2023
US Steel posted a drop in fourth-quarter 2022 profits partly attributable to lower flat-rolled steel shipment volumes and selling prices.
But the Pittsburgh-based steelmaker nonetheless recorded the second-best annual profit in its history.
“We are well-positioned for 2023. Our record cash and liquidity support a balanced capital allocation approach,” US president and CEO David Burritt said in a statement released with earnings figures after the close of markets on Thursday, Feb. 2.
All told, US Steel recorded net earnings of $174 million in the fourth quarter of 2022, down 84% from $1.07 billion in the fourth quarter of 2021 on net sales that fell 23% to $4.34 billion over the same period.
For the full year of 2022, the company posted a profit of $2.52 billion, down 40% from $4.17 billion in 2021 despite sales increasing 4% to $21.07 billion.
On the operations side, a slide released with earnings results (see slide 22) indicated that company had restarted the No. 3 blast furnace at its Mon Valley Works in western Pennsylvania.
The furnace was initially taken offline in August for planned maintenance but then kept idled because of poor market conditions.
No. 3 was restarted on Friday, Jan. 27, a company spokesperson told SMU. Additional detail is expected to be provided on US Steel’s earnings call on Friday, Feb. 3, at 8:30 am ET.
The Mon Valley Works has two blast furnaces: No. 1 and No. 3. The No. 1 furnace has a daily ironmaking capacity of approximately 3,200 tons. The No. 3 furnace has a daily capacity of approximately 2,900 tons.
The furnaces are located at US Steel’s Edgar Thomson plant in Braddock, Pa. That facility makes slabs and rails them to the company’s Irvin Plant in West Mifflin, Pa., where they are rolled into sheet.
The restart of No. 3 at Mon Valley roughly coincides with US Steel restarting all three blast furnaces at its steel mill in Košice, Slovakia.
SMU has updated its blast furnace status table to reflect the change.
By Michael Cowden, michael@steelmarketupdate.com
Michael Cowden
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