|
|
|
|
|
Delaware
|
|
1-16811
|
|
25-1897152
|
(State or Other Jurisdiction
of Incorporation)
|
|
(Commission
File Number)
|
|
(I.R.S. Employer
Identification No.)
|
|
|
|
☐
|
Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
|
☐
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
|
☐
|
Pre-commencement communication pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
|
☐
|
Pre-commencement communication pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
|
||
Emerging growth company
|
☐
|
|
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common Stock
|
X
|
New York Stock Exchange
|
Common Stock
|
X
|
Chicago Stock Exchange
|
Press Release dated January 30, 2020, titled "United States Steel Corporation Reports Fourth Quarter and Full-Year 2019 Results" together with related unaudited financial information and statistics.
|
|
|
|
101
|
Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.
|
|
|
104
|
The cover page from this Current Report on Form 8-K, formated in Inline XBRL.
|
By
|
/s/ Kimberly D. Fast
|
|
Kimberly D. Fast
|
|
Acting Controller
|
|
CONTACTS:
Media
Amanda Malkowski
Public Affairs Rep.
Corporate Communications
T - (412) 433-2512
E - almalkowski@uss.com
|
Investors/Analysts
Kevin Lewis
General Manager
Investor Relations
T - (412) 433-6935
E - KLewis@uss.com
|
•
|
Full-year 2019 net loss of $642 million, or $3.75 per diluted share; fourth quarter 2019 net loss of $680 million, or $4.00 per diluted share. Includes $609 million and $567 million of restructuring charges and tax valuation allowance for full year and fourth quarter 2019, respectively.
|
•
|
Full-year 2019 adjusted net earnings of $15 million, or $0.09 per diluted share; fourth quarter 2019 adjusted net loss of $109 million, or $0.64 per diluted share.
|
•
|
Full-year 2019 adjusted EBITDA of $711 million; fourth quarter 2019 adjusted EBITDA of $4 million.
|
•
|
Transition to our world-competitive, "best of both" business model supported by significant actions taken in 2019: achieved $75 million of run-rate fixed cost reductions, adjusted capital spending to prioritize strategic investments, raised $1.1 billion of incremental capital to support nimble strategy execution and closed on our 49.9% investment in Big River Steel.
|
Earnings Highlights
|
||||||||||||||||
|
||||||||||||||||
|
Quarter Ended
|
|
Year Ended
|
|||||||||||||
|
December 31,
|
|
December 31,
|
|||||||||||||
(Dollars in millions, except per share amounts)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|||||||||
Net Sales
|
$
|
2,824
|
|
|
$
|
3,691
|
|
|
$
|
12,937
|
|
|
$
|
14,178
|
|
|
Segment (loss) earnings before interest and income taxes
|
|
|
|
|
|
|
|
|||||||||
Flat-Rolled
|
$
|
(79
|
)
|
|
$
|
328
|
|
|
$
|
196
|
|
|
$
|
883
|
|
|
U. S. Steel Europe
|
(30
|
)
|
|
62
|
|
|
(57
|
)
|
|
359
|
|
|||||
Tubular
|
(46
|
)
|
|
(3
|
)
|
|
(67
|
)
|
|
(58
|
)
|
|||||
Other Businesses
|
(3
|
)
|
|
11
|
|
|
23
|
|
|
55
|
|
|||||
Total segment (loss) earnings before interest and income taxes
|
$
|
(158
|
)
|
|
$
|
398
|
|
|
$
|
95
|
|
|
$
|
1,239
|
|
|
Other items not allocated to segments
|
(218
|
)
|
|
(85
|
)
|
|
(325
|
)
|
|
(115
|
)
|
|||||
(Loss) earnings before interest and income taxes
|
$
|
(376
|
)
|
|
$
|
313
|
|
|
$
|
(230
|
)
|
|
$
|
1,124
|
|
|
Net interest and other financial costs
|
71
|
|
|
60
|
|
|
222
|
|
|
312
|
|
|||||
Income tax provision (benefit)
|
233
|
|
|
(339
|
)
|
|
190
|
|
|
(303
|
)
|
|||||
Net (loss) earnings
|
$
|
(680
|
)
|
|
$
|
592
|
|
|
$
|
(642
|
)
|
|
$
|
1,115
|
|
|
(Loss) earnings per diluted share
|
$
|
(4.00
|
)
|
|
$
|
3.34
|
|
|
$
|
(3.75
|
)
|
|
$
|
6.25
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Adjusted net (loss) earnings (a)
|
$
|
(109
|
)
|
|
$
|
324
|
|
|
$
|
15
|
|
|
$
|
957
|
|
|
Adjusted net (loss) earnings per diluted share (a)
|
$
|
(0.64
|
)
|
|
$
|
1.82
|
|
|
$
|
0.09
|
|
|
$
|
5.36
|
|
|
Adjusted earnings before interest, income taxes, depreciation and amortization (EBITDA) (a)
|
$
|
4
|
|
|
$
|
535
|
|
|
$
|
711
|
|
|
$
|
1,760
|
|
UNITED STATES STEEL CORPORATION
|
||||||||||||||||
CONDENSED STATEMENT OF OPERATIONS (Unaudited)
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Quarter Ended
|
|
Year Ended
|
||||||||||||
|
|
December 31,
|
|
December 31,
|
||||||||||||
(Dollars in millions, except per share amounts)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|||||||||
NET SALES
|
|
$
|
2,824
|
|
|
$
|
3,691
|
|
|
$
|
12,937
|
|
|
$
|
14,178
|
|
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses (income):
|
|
|
|
|
|
|
|
|
||||||||
Cost of sales (excludes items shown below)
|
|
2,781
|
|
|
3,204
|
|
|
12,082
|
|
|
12,305
|
|
||||
Selling, general and administrative expenses
|
|
66
|
|
|
85
|
|
|
289
|
|
|
336
|
|
||||
Depreciation, depletion and amortization
|
|
162
|
|
|
137
|
|
|
616
|
|
|
521
|
|
||||
Earnings from investees
|
|
(11
|
)
|
|
(22
|
)
|
|
(79
|
)
|
|
(61
|
)
|
||||
Gain on equity investee transactions
|
|
—
|
|
|
(20
|
)
|
|
—
|
|
|
(38
|
)
|
||||
Restructuring charges
|
|
221
|
|
|
—
|
|
|
275
|
|
|
—
|
|
||||
Net gain on disposal of assets
|
|
(4
|
)
|
|
(3
|
)
|
|
(1
|
)
|
|
(6
|
)
|
||||
Other income, net
|
|
(15
|
)
|
|
(3
|
)
|
|
(15
|
)
|
|
(3
|
)
|
||||
Total operating expenses
|
|
3,200
|
|
|
3,378
|
|
|
13,167
|
|
|
13,054
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
(LOSS) EARNINGS BEFORE INTEREST AND INCOME TAXES
|
|
(376
|
)
|
|
313
|
|
|
(230
|
)
|
|
1,124
|
|
||||
Net interest and other financial costs
|
|
71
|
|
|
60
|
|
|
222
|
|
|
312
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
(LOSS) EARNINGS BEFORE INCOME TAXES
|
|
(447
|
)
|
|
253
|
|
|
(452
|
)
|
|
812
|
|
||||
Income tax provision (benefit)
|
|
233
|
|
|
(339
|
)
|
|
190
|
|
|
(303
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Net (loss) earnings
|
|
(680
|
)
|
|
592
|
|
|
(642
|
)
|
|
1,115
|
|
||||
Less: Net earnings (loss) attributable to noncontrolling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
NET (LOSS) EARNINGS ATTRIBUTABLE TO UNITED STATES STEEL CORPORATION
|
|
$
|
(680
|
)
|
|
$
|
592
|
|
|
$
|
(642
|
)
|
|
$
|
1,115
|
|
|
|
|
|
|
|
|
|
|
||||||||
COMMON STOCK DATA:
|
|
|
|
|
|
|
|
|
||||||||
Net (loss) earnings per share attributable to
|
|
|
|
|
|
|
|
|
||||||||
United States Steel Corporation stockholders:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
$
|
(4.00
|
)
|
|
$
|
3.36
|
|
|
$
|
(3.75
|
)
|
|
$
|
6.31
|
|
Diluted
|
|
$
|
(4.00
|
)
|
|
$
|
3.34
|
|
|
$
|
(3.75
|
)
|
|
$
|
6.25
|
|
Weighted average shares, in thousands
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
170,041
|
|
|
176,091
|
|
|
171,418
|
|
|
176,633
|
|
||||
Diluted
|
|
170,041
|
|
|
177,649
|
|
|
171,418
|
|
|
178,461
|
|
||||
Dividends paid per common share
|
|
$
|
0.05
|
|
|
$
|
0.05
|
|
|
$
|
0.20
|
|
|
$
|
0.20
|
|
UNITED STATES STEEL CORPORATION
|
||||||||||
CONDENSED CASH FLOW STATEMENT (Unaudited)
|
||||||||||
|
|
|
|
|
|
|
||||
|
|
|
|
Year Ended
|
||||||
|
|
|
|
December 31,
|
||||||
(Dollars in millions)
|
|
2019
|
|
2018
|
||||||
Cash provided by (used in) operating activities:
|
|
|
|
|||||||
|
Net (loss) earnings
|
$
|
(642
|
)
|
|
$
|
1,115
|
|
||
|
Depreciation, depletion and amortization
|
616
|
|
|
521
|
|
||||
|
Gain on equity investee transactions
|
—
|
|
|
(38
|
)
|
||||
|
Restructuring charges
|
275
|
|
|
—
|
|
||||
|
Loss on debt extinguishment
|
—
|
|
|
98
|
|
||||
|
Pensions and other post-employment benefits
|
101
|
|
|
77
|
|
||||
|
Deferred income taxes
|
215
|
|
|
(329
|
)
|
||||
|
Net gain on disposal of assets
|
(1
|
)
|
|
(6
|
)
|
||||
|
Working capital changes
|
276
|
|
|
(404
|
)
|
||||
|
Income taxes receivable/payable
|
13
|
|
|
(8
|
)
|
||||
|
Other operating activities
|
(171
|
)
|
|
(88
|
)
|
||||
|
|
Total
|
|
682
|
|
|
938
|
|
||
|
|
|
|
|
|
|
||||
Cash used in investing activities:
|
|
|
|
|||||||
|
Capital expenditures
|
(1,252
|
)
|
|
(1,001
|
)
|
||||
|
Investment in Big River Steel
|
(710
|
)
|
|
—
|
|
||||
|
Disposal of assets
|
4
|
|
|
10
|
|
||||
|
Proceeds from sale of ownership interests in equity investees
|
—
|
|
|
30
|
|
||||
|
Other investing activities
|
—
|
|
|
(2
|
)
|
||||
|
|
Total
|
|
(1,958
|
)
|
|
(963
|
)
|
||
|
|
|
|
|
|
|
||||
Cash provided by (used in) financing activities:
|
|
|
|
|||||||
|
Revolving credit facilities - borrowings, net of financing costs
|
860
|
|
|
228
|
|
||||
|
Revolving credit facilities - repayments
|
(100
|
)
|
|
—
|
|
||||
|
Issuance of long-term debt, net of financing costs
|
702
|
|
|
640
|
|
||||
|
Repayment of long-term debt
|
(155
|
)
|
|
(1,299
|
)
|
||||
|
Common stock repurchased
|
(88
|
)
|
|
(75
|
)
|
||||
|
Receipts from exercise of stock options
|
—
|
|
|
35
|
|
||||
|
Taxes paid for equity compensation plans
|
(7
|
)
|
|
(8
|
)
|
||||
|
Dividends paid
|
(35
|
)
|
|
(36
|
)
|
||||
|
|
Total
|
|
1,177
|
|
|
(515
|
)
|
||
|
|
|
|
|
|
|
||||
Effect of exchange rate changes on cash
|
(2
|
)
|
|
(17
|
)
|
|||||
|
|
|
|
|
|
|
||||
Net decrease in cash, cash equivalents and restricted cash
|
(101
|
)
|
|
(557
|
)
|
|||||
Cash, cash equivalents and restricted cash at beginning of the year
|
1,040
|
|
|
1,597
|
|
|||||
|
|
|
|
|
|
|
||||
Cash, cash equivalents and restricted cash at end of the period
|
$
|
939
|
|
|
$
|
1,040
|
|
UNITED STATES STEEL CORPORATION
|
|||||||||
CONDENSED BALANCE SHEET (Unaudited)
|
|||||||||
|
|
|
|
|
|
||||
|
|
|
December 31,
|
|
December 31,
|
||||
(Dollars in millions)
|
|
2019
|
|
2018
|
|||||
Cash and cash equivalents
|
$
|
749
|
|
|
$
|
1,000
|
|
||
Receivables, net
|
1,177
|
|
|
1,659
|
|
||||
Inventories
|
1,785
|
|
|
2,092
|
|
||||
Other current assets
|
102
|
|
|
79
|
|
||||
|
Total current assets
|
3,813
|
|
|
4,830
|
|
|||
Operating lease assets
|
230
|
|
|
—
|
|
||||
Property, plant and equipment, net
|
5,447
|
|
|
4,865
|
|
||||
Investments and long-term receivables, net
|
1,466
|
|
|
513
|
|
||||
Intangible assets, net
|
150
|
|
|
158
|
|
||||
Deferred income tax benefits
|
7
|
|
|
445
|
|
||||
Other noncurrent assets
|
530
|
|
|
171
|
|
||||
|
|
|
|
|
|
||||
|
Total assets
|
|
$
|
11,643
|
|
|
$
|
10,982
|
|
|
|
|
|
|
|
||||
Accounts payable and other accrued liabilities
|
2,054
|
|
|
2,535
|
|
||||
Payroll and benefits payable
|
383
|
|
|
440
|
|
||||
Short-term debt and current maturities of long-term debt
|
14
|
|
|
65
|
|
||||
Other current liabilities
|
221
|
|
|
157
|
|
||||
|
Total current liabilities
|
2,672
|
|
|
3,197
|
|
|||
Noncurrent operating lease liabilities
|
177
|
|
|
—
|
|
||||
Long-term debt, less unamortized discount and debt issuance costs
|
3,627
|
|
|
2,316
|
|
||||
Employee benefits
|
532
|
|
|
980
|
|
||||
Other long-term liabilities
|
554
|
|
|
286
|
|
||||
United States Steel Corporation stockholders' equity
|
4,080
|
|
|
4,202
|
|
||||
Noncontrolling interests
|
1
|
|
|
1
|
|
||||
|
|
|
|
|
|
||||
|
Total liabilities and stockholders' equity
|
$
|
11,643
|
|
|
$
|
10,982
|
|
UNITED STATES STEEL CORPORATION
|
||||||||||||||||
NON-GAAP FINANCIAL MEASURES
|
||||||||||||||||
RECONCILIATION OF ADJUSTED EBITDA
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Quarter Ended
|
|
Year Ended
|
||||||||||||
|
|
December 31,
|
|
December 31,
|
||||||||||||
(Dollars in millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|||||||||
Reconciliation to Adjusted EBITDA
|
|
|
|
|
|
|
|
|||||||||
|
Net (loss) earnings attributable to United States Steel Corporation
|
$
|
(680
|
)
|
|
$
|
592
|
|
|
$
|
(642
|
)
|
|
$
|
1,115
|
|
|
Income tax provision (benefit)
|
233
|
|
|
(339
|
)
|
|
190
|
|
|
(303
|
)
|
||||
|
Net interest and other financial costs
|
71
|
|
|
60
|
|
|
222
|
|
|
312
|
|
||||
|
Depreciation, depletion and amortization expense
|
162
|
|
|
137
|
|
|
616
|
|
|
521
|
|
||||
|
EBITDA
|
(214
|
)
|
|
450
|
|
|
386
|
|
|
1,645
|
|
||||
|
December 24, 2018 Clairton coke making facility fire
|
(3
|
)
|
|
—
|
|
|
50
|
|
|
—
|
|
||||
|
Restructuring charges
|
221
|
|
|
—
|
|
|
275
|
|
|
—
|
|
||||
|
United Steelworkers labor agreement signing bonus & related costs
|
—
|
|
|
88
|
|
|
—
|
|
|
81
|
|
||||
|
Gain on equity investee transactions
|
—
|
|
|
(20
|
)
|
|
—
|
|
|
(38
|
)
|
||||
|
Granite City Works restart costs
|
—
|
|
|
17
|
|
|
—
|
|
|
80
|
|
||||
|
Granite City Works temporary idling charges
|
—
|
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
||||
|
Adjusted EBITDA
|
$
|
4
|
|
|
$
|
535
|
|
|
$
|
711
|
|
|
$
|
1,760
|
|