Steel Products

USS Expects Better Q2 Results, Big River Crucial to Q3
Written by Ethan Bernard
June 19, 2023
U.S. Steel expects stronger earnings in Q2 vs. the prior quarter but lower than a year earlier.
The company also said the planned startup of an electrical steel line at its Big River Steel operation in Arkansas is crucial to Q3.
The Pittsburgh based steelmaker on Monday released adjusted-net-earnings-per-diluted-share guidance of $1.81 to $1.86 for Q2. This compares with reported adjusted net earnings per diluted share of $0.77 in Q1’23 and $3.86 in the second quarter last year, respectively.
Additionally, the company said adjusted ebitda in Q2 is expected to be ~$775 million.
“We expect to deliver another strong quarter of safety, operational, and financial performance driven by our continued focus on strategic markets and building a more resilient business model,” president and CEO David B. Burritt said in a statement.
Commenting on the Q2 guidance, Burritt said the adjusted Ebitda guidance reflects the benefits of “our diverse order book, the realization of higher selling prices, and management actions that continue to improve operational metrics and cost performance throughout our segments.”
He said the company’s next “critical strategic milestone” is the startup of the non-grain oriented (NGO) electrical steel line at Big River Steel in Arkansas in Q3.
Burritt commented that once on line, “the NGO electrical steel line is expected to strengthen domestic supply chains and bring advanced manufacturing back to our shores, as we serve our automotive customers with state-of-the-art electrical steel that is sustainable and exclusive to U.S. Steel.”
For guidance by segment, U.S. Steel said:
- The flat-rolled segment’s adjusted ebitda is expected to be higher than the first quarter due to its diverse end-market exposure and growth in strategic markets, as well as higher steel prices.
- The mini-mill segment’s adjusted ebitda is expected to increase vs. Q1 from higher average selling prices.
- The European segment is expected to return to positive-adjusted ebitda as “the realization of commercial tailwinds in the second quarter, lower energy costs, and increased efficiencies from running all three blast furnaces should each contribute to higher sequential adjusted ebitda.”
- The Tubular segment’s adjusted ebitda “is expected to remain strong but lower than the first quarter” on lower spot average selling prices and continued high import levels.

Ethan Bernard
Read more from Ethan BernardLatest in Steel Products

ISM: Manufacturing growth down again in April
Activity had trended up for most of Q1

EU HR prices gain ground on US, Asian HR still well behind
Section 232 returned on March 12, and since then, the price gap between offshore and US hot band has tightened.

SMU Community Chat replay now available
The latest SMU Community Chat webinar reply is now available on our website to all members. After logging in at steelmarketupdate.com, visit the community tab and look under the “previous webinars” section of the dropdown menu. All past Community Chat webinars are also available under that selection. If you need help accessing the webinar replay, or if your company […]

SSAB announces $74M expansion in Alabama
The project will expand heat treat capacity at its Axis, Alabama plant

Service centers: Mill orders retreat in March
SMU’s Mill Order Index declined in March after repeated gains at the start of the year, according to our latest service center inventories data.