United States Steel Corp (X, Financial) released its third-quarter earnings report on October 26, 2023. The company reported net earnings of $299 million, or $1.20 per diluted share, and adjusted net earnings of $350 million, or $1.40 per diluted share. This is a decrease compared to Q3 2022, where the company reported net earnings of $490 million, or $1.85 per diluted share, and adjusted net earnings of $526 million, or $1.98 per diluted share.
Company Performance and Strategy
Commenting on the company's performance, U.S. Steel President and CEO David B. Burritt said,
Our business continues to safely deliver strong results highlighting the benefits of a diverse order book, well-run operations and a focused U. S. Steel team. Our diverse flat-rolled product portfolio allowed us to adapt to changing demand dynamics and our teamwork drove cost benefits in the quarter."
Regarding the company's Best for All® strategy, Burritt added,
The third quarter marked another key milestone towards our Best for All future. Our non-grain oriented, or NGO, electrical steel line produced its first coil in September and first industrial grade coil in October. NGO steel is essential to our country’s green energy future and serves the automotive and power generation sectors. Our NGO line can produce the thinnest gauges, widest widths, and biggest coils in the domestic industry today. This investment further expands our capabilities to meet customers’ needs. The nearly $4 billion of strategic investment in the Mini Mill segment is progressing on-time and budget."
Financial Highlights
The company's net sales for the third quarter of 2023 were $4,431 million. The earnings before interest and income taxes for the same period were $277 million. The net interest and other financial benefits were $(64) million, and the income tax expense was $42 million. The earnings per diluted share were $1.20.
The adjusted net earnings were $350 million, and the adjusted net earnings per diluted share were $1.40. The adjusted earnings before interest, income taxes, depreciation, and amortization (EBITDA) were $578 million.
Outlook
United States Steel Corp (X, Financial) continues to focus on its strategic investments and delivering on its commitments to customers. The company's Board of Directors and management team are fully engaged in a robust and competitive strategic alternatives review process to maximize stockholder value.
Despite the challenges posed by the global economic environment, the company continues to see strong performance in its operations. The company's focus on safety, innovation, and sustainability positions it well for future growth.
Explore the complete 8-K earnings release (here) from United States Steel Corp for further details.
