U. S. Steel(US:X)2024-08-01 20:20Financial Performance - Second quarter 2024 net earnings were $183 million, or $0.72 per diluted share, compared to $477 million, or $1.89 per diluted share in the same quarter of 2023[2]. - Adjusted net earnings for Q2 2024 were $211 million, or $0.84 per diluted share, down from $483 million, or $1.92 per diluted share in Q2 2023[2]. - Adjusted EBITDA for Q2 2024 was $443 million, a decrease from $804 million in Q2 2023[7]. - Net sales for Q2 2024 were $4.118 billion, compared to $5.008 billion in Q2 2023, reflecting a 17.7% decline[10]. - Net earnings for the six months ended June 30, 2024, were $354 million, a decrease of 48% compared to $676 million in the same period of 2023[11]. - Adjusted EBITDA for the second quarter of 2024 was $443 million, down from $804 million in the second quarter of 2023, reflecting a margin of 10.8% compared to 16.1%[14]. Cash Flow and Assets - Cash and cash equivalents decreased to $2,031 million as of June 30, 2024, from $2,948 million at the end of 2023[12]. - Total current assets decreased to $5,950 million as of June 30, 2024, compared to $6,943 million at the end of 2023[12]. - Free cash flow for the second quarter of 2024 was $(156) million, contributing to a total of $(841) million for the year[15]. - The company reported a net cash provided by operating activities of $446 million for the six months ended June 30, 2024, down from $894 million in 2023[11]. - The company experienced a net decrease in cash, cash equivalents, and restricted cash of $915 million in the first half of 2024[11]. - Long-term debt remained stable at approximately $4,078 million as of June 30, 2024, compared to $4,080 million at the end of 2023[12]. - The company’s stockholders' equity increased to $11,393 million as of June 30, 2024, from $11,047 million at the end of 2023[12]. Operational Highlights - The Mini Mill segment achieved a 17% EBITDA margin, despite $30 million in one-time start-up costs for strategic projects[3]. - Third quarter adjusted EBITDA is expected to be between $275 million and $325 million, influenced by recent pricing dynamics[3]. - Construction on the Big River 2 (BR2) project is on track for a planned start-up in Q4 2024[6]. - The Tubular segment is expected to see lower results due to declining selling prices in Q3 2024[6]. - Average realized price for Flat-Rolled products was $1,051 per net ton in Q2 2024, down from $1,088 in Q2 2023[8]. - Total steel shipments in Q2 2024 were 3.591 million net tons, a decrease from 3.967 million net tons in Q2 2023[8]. - United States Steel Corporation has an annual raw steelmaking capability of 22.4 million net tons[21]. Strategic Focus - The company emphasizes innovation with products like the proprietary XG3 advanced high-strength steel, targeting automotive and construction industries[21]. - The company is focused on a customer-centric strategy called "Best for All," aimed at advancing a sustainable future[21]. - The company maintains competitively advantaged iron ore production, which supports its steelmaking operations[21]. - The company’s focus on safety is a key component of its operational strategy[21]. Risks and Forward-Looking Statements - The company is subject to risks and uncertainties that could materially affect its financial condition and results, including the proposed transaction with NSC[20]. - Forward-looking statements made by the company are subject to various risks, including regulatory approvals and potential disruptions to management[20]. - The company does not undertake any duty to update forward-looking statements unless required by law[20]. - The company believes its forward-looking statements are reasonable but cautions against undue reliance on them[20].