Steel Mills
U.S. Steel Posts Lower Q3 Profit on Drop in Sheet Prices. Quiet on Sales Process
Written by Michael Cowden
October 26, 2023
U.S. Steel Corp.
| Third quarter ended Sept. 30 | 2023 | 2022 | % Change |
|---|---|---|---|
| Net sales | $4,431 | $5,203 | -14.8% |
| Net earnings | $299 | $490 | -40% |
| Per diluted share | $1.20 | $1.85 | -35.1% |
| Nine months ended Sept. 30 | |||
| Net sales | $13,909 | $16,727 | -16.8% |
| Net earnings | $975 | $2,350 | -58.5% |
| Per diluted share | $3.86 | $8.38 | -53.9% |
U.S Steel posted sharply lower earnings on a drop in steel prices and only modest gains in shipments.
The Pittsburgh-based steelmaker also said little about the sales process it launched in August in commentary released with earnings data after the close of markets on Thursday, Oct. 26.
U.S. Steel “is progressing a robust and competitive strategic alternatives review process to maximize stockholder value,” company president and CEO David Burritt said in a statement.
Cleveland-Cliffs, which has announced it intentions to acquire U.S. Steel, also said little specific about its bid when it announced earnings earlier in the week.
All told, U.S. Steel recorded net earnings of $299 million in the third quarter of 2023, down 35.1% from $490 million in the same quarter last year. It notched sales of $4.43 billion, 14.8% lower than Q3’22. (see chart above).
The company recorded total steel shipments 3.78 million tons in Q3’23, up 2.1% from 3.70 million tons in Q3’2022. That modest gain was offset by lower prices.
U.S. Steel posted averaged selling prices at $1,036 per ton at its integrated mills in Q3’23, down 15.9% from $1,232 per ton in Q3’22. Its Big River Steel EAF sheet mill in Osceola, Ark., recorded average selling prices of $901 per ton in Q3’22, down 17.8% from $1,096 per ton a year earlier.
U.S. Steel competitors Nucor and Steel Dynamics Inc. (SDI) posted a dip in profits for similar reasons.
Michael Cowden
Read more from Michael CowdenLatest in Steel Mills
Nucor eyes long-term gains amid strong demand and trade enforcement
Resilient demand across its steel product lines, combined with the continued ramp-up of key expansion projects, drove Nucor’s improved financial results and record-setting performance in the second quarter. That’s according to company executives speaking on an earnings conference call on Tuesday.
Three independent, new directors join USS board
U.S. Steel (USS) appointed three new, independent US members to its board of directors, the company announced.
Nucor reports improved earnings, sales, and operating rates
Nucor reported a sharp sequential rebound in the second quarter, buoyed by improved pricing and strong shipments. But the steelmaker is bracing for a modest slowdown in the months ahead.
Cliffs confirms Cleveland furnace restart, Dearborn furnace idling
Cleveland-Cliffs is idling blast furnace, BOF shop, and continuous caster functions at its Dearborn plant, but downstream operations will remain unaffected, the company confirmed. Cliffs said its pickling line tandeom cold mill (PLTCM) and its extra wide automotive-grade galvanizing line for exposed parts will continue operations at the Dearborn, Michigan-based facility.
Nucor spot HR list price unchanged at $900/ton
Nucor maintained its weekly list price for hot-rolled (HR) coil flat this week, following a price cut the previous week.