PITTSBURGH, April 26, 2018 – United States Steel Corporation (NYSE: X) reported first quarter 2018 net earnings of $18 million. Adjusted net earnings were $57 million. This compares to a first quarter 2017 net loss of $180 million. Adjusted net loss for first quarter 2017 was $145 million.
Commenting on U. S. Steel's results, President and Chief Executive Officer David B. Burritt said, "Our performance was significantly better than the first quarter of 2017, with improved results for all three of our reportable segments enabling four consecutive quarters of more predictable EBITDA. In spite of operational issues related to weather and ongoing challenges with assets not yet revitalized, the first quarter of 2018 was in line with our expectations. During the first quarter, we also continued to improve our risk profile and strengthen our balance sheet through the successful completion of a $650 million senior unsecured notes offering, and the subsequent repayment of $780 million of our senior secured notes, with the repayment of the final $281 million being completed on April 12."
The improving strength of our balance sheet and total liquidity supports the continued implementation of our asset revitalization program in our Flat-Rolled segment, as well as increasing investment in our European and Tubular businesses. Our net debt was approximately $1.5 billion as of March 31, 2018, a decrease of over $225 million from the same period last year. We maintain strong cash and liquidity.
U. S. Steel Europe segment earnings before interest and income taxes for first quarter 2018 were $110 million, capital expenditures achieved $21 million and raw steel capability utilization was 105%.
Commenting on U. S. Steel’s guidance for 2018, Burritt said, "We are beginning the second year of our asset revitalization program, and we are already seeing benefits from the investments in our assets. It is prudent for us to anticipate the possibility of continued operational volatility for those assets yet to be revitalized. We remain focused on managing operating volatility to ensure we take care of our customers, and the restart of steelmaking at Granite City will increase our ability to do so. While there is uncertainty about how country exemption and product exclusion requests related to Section 232 will be resolved, we continue to invest in revitalizing our assets and developing innovative customer solutions. We are confident we will deliver our 2020 performance objectives."
Currently, we are experiencing operational challenges at our steelmaking facility at Great Lakes Works that we expect will have an unfavorable EBITDA impact of approximately $30 million on second quarter results. We currently believe that second quarter 2018 adjusted EBITDA will be approximately $400 million, and full-year 2018 adjusted EBITDA will be approximately $1.7 - $1.8 billion.
Memorandum fulfilled its purpose; both parties want to continue in the cooperation