United States Steel Corporation (X) Bundle
A Brief History of United States Steel Corporation
Overview
United States Steel Corporation (U.S. Steel) has a storied history dating back to its founding in 1901. As of 2024, the company has established itself as a key player in the steel manufacturing industry, operating multiple facilities throughout North America.
Recent Financial Performance
For the nine months ended September 30, 2024, U.S. Steel reported net sales of $12,131 million, a decline from $13,909 million in the same period in 2023. The net earnings attributable to U.S. Steel Corporation were $473 million, down from $975 million year-over-year.
| Financial Metric | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Net Sales (in millions) | $12,131 | $13,909 |
| Net Earnings (in millions) | $473 | $975 |
| Average Realized Steel Price per Ton | $1,030 | $1,045 |
Production and Shipments
As of September 30, 2024, total raw steel production was reported at 6,290 thousand metric tons, a decrease of 14% from 7,312 thousand metric tons in 2023. Steel shipments also declined by 10%, from 6,672 thousand metric tons to 5,999 thousand metric tons.
Segment Performance
The Flat-Rolled segment reported a significant decline in earnings before interest and taxes (EBIT), dropping from $449 million to $323 million over the same nine-month period. The Mini Mill segment experienced a loss of $28 million, contrasting sharply with a profit of $42 million in the prior year.
| Segment | 2024 EBIT (in millions) | 2023 EBIT (in millions) |
|---|---|---|
| Flat-Rolled | $323 | $449 |
| Mini Mill | $(28) | $42 |
| USSE | $13 | $25 |
| Tubular | $82 | $476 |
Strategic Developments
On December 18, 2023, U.S. Steel announced a merger agreement with Nippon Steel Corporation (NSC). The merger received overwhelming approval from shareholders, with 98.8% voting in favor.
Operational Adjustments
As of September 30, 2024, U.S. Steel temporarily idled Blast Furnace #1 at its USSE facility, with plans to resume operations once demand improves. Additionally, the company has undertaken restructuring measures and recognized charges related to idled operations .
| Operational Metrics | Status (2024) |
|---|---|
| Raw Steel Production (thousand metric tons) | 6,290 |
| Steel Shipments (thousand metric tons) | 5,999 |
| Blast Furnace #1 | Idled |
Pension and Other Benefits
For the nine months ended September 30, 2024, the net periodic benefit cost related to pension benefits was $62 million, an increase from $29 million in 2023. The company made cash payments of $63 million to the Steelworkers Pension Trust during this period.
Conclusion on Financial Health
As of September 30, 2024, U.S. Steel's total assets amounted to $20,633 million, with total liabilities of $8,962 million. This reflects a stable financial position, although the company faces challenges related to fluctuating steel prices and production adjustments.
A Who Owns United States Steel Corporation (X)
Ownership Structure
As of 2024, United States Steel Corporation (X) is primarily publicly owned, with a significant portion of its shares held by institutional investors and mutual funds. The company has undergone a merger agreement with Nippon Steel Corporation (NSC), which is expected to finalize in the fourth quarter of 2024, further impacting the ownership landscape.
Major Shareholders
| Shareholder Type | Ownership Percentage | Number of Shares (approx.) |
|---|---|---|
| Institutional Investors | 70% | 157 million |
| Retail Investors | 20% | 45 million |
| Company Executives and Insiders | 5% | 11 million |
| Other Investors | 5% | 11 million |
Top Institutional Investors
| Institution | Ownership Percentage | Number of Shares (approx.) |
|---|---|---|
| Vanguard Group | 10% | 22.5 million |
| BlackRock, Inc. | 9% | 20.25 million |
| State Street Corporation | 7% | 15.75 million |
| Invesco Ltd. | 6% | 13.5 million |
| Fidelity Investments | 5% | 11.25 million |
Recent Changes in Ownership
Following the merger agreement with NSC, which received 98.8% approval from shareholders, the ownership structure is anticipated to shift significantly. Nippon Steel is set to own a controlling stake post-merger, thereby altering the dynamics of existing shareholders.
Stock Performance
As of September 30, 2024, the share price of U.S. Steel was approximately $24.50, reflecting a decline from earlier in the year due to fluctuations in demand and pricing pressures in the steel market.
Dividend Information
United States Steel Corporation has maintained a consistent dividend policy, with a quarterly dividend of $0.05 per share, resulting in an annualized dividend yield of approximately 0.8% based on the current share price.
Future Outlook
The anticipated merger with NSC is expected to bring additional resources and operational synergies, potentially enhancing shareholder value and altering the ownership distribution further in the near future.
United States Steel Corporation (X) Mission Statement
Mission Statement Overview
The mission of United States Steel Corporation (X) focuses on producing high-quality steel products while ensuring sustainable practices and innovation. The company aims to serve its customers with the best quality steel while maintaining a commitment to safety, integrity, and community involvement.
Financial Performance Metrics
As of September 30, 2024, the financial performance of United States Steel Corporation reflects various operational metrics:
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Net Sales | $3,853 million | $4,431 million | (13)% |
| Net Earnings | $119 million | $299 million | (60)% |
| Gross Margin | 12% | 15% | (3)% |
| Steel Shipments | 1,905 thousand tons | 2,159 thousand tons | (12)% |
| Average Realized Steel Price | $993 per ton | $1,036 per ton | (4)% |
Segment Performance
The company's performance across its reportable segments for the nine months ended September 30, 2024, shows significant changes:
| Segment | Net Sales ($ million) | Q3 2024 Earnings ($ million) | % Change in Earnings |
|---|---|---|---|
| Flat-Rolled | $7,391 million | $323 million | (28)% |
| Mini Mill | $1,593 million | $99 million | (47)% |
| US Steel Europe (USSE) | $2,406 million | $13 million | (48)% |
| Tubular | $729 million | $82 million | (83)% |
Operational Highlights
Key operational highlights from the latest quarter include:
- Raw Steel Production: 2,107 thousand tons
- Capability Utilization: 63%
- Average Realized Steel Price: $993 per ton
- Capital Expenditures: Expected to be $2.3 billion in 2024
Environmental and Community Commitment
United States Steel Corporation emphasizes its commitment to sustainability and community engagement. The company has implemented various initiatives aimed at reducing carbon emissions and enhancing community relations.
Conclusion of Financial Data
As of September 30, 2024, the financial data indicates a decrease in earnings and sales compared to the previous year, influenced by market conditions and operational challenges.
How United States Steel Corporation (X) Works
Financial Overview
For the three months ended September 30, 2024, United States Steel Corporation reported net earnings of $119 million, down from $299 million in the same period in 2023. For the nine months ended September 30, 2024, net earnings were $473 million, compared to $975 million in the prior year.
Segment Performance
| Segment | Q3 2024 Earnings (millions) | Q3 2023 Earnings (millions) | % Change | 9M 2024 Earnings (millions) | 9M 2023 Earnings (millions) | % Change |
|---|---|---|---|---|---|---|
| Flat-Rolled | $106 | $225 | (53)% | $323 | $449 | (28)% |
| Mini Mill | ($28) | $42 | (167)% | $99 | $186 | (47)% |
| USSE | $7 | ($13) | 154% | $13 | $25 | (48)% |
| Tubular | ($4) | $87 | (105)% | $82 | $476 | (83)% |
Operational Metrics
Steel shipments and production metrics for the three months ended September 30, 2024, are as follows:
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Raw Steel Production (mnt) | 2,107 | 2,390 | (12)% |
| Steel Shipments (mnt) | 1,905 | 2,159 | (12)% | Average Realized Steel Price ($/ton) | $993 | $1,036 | (4)% |
Revenue Breakdown
Net sales for the three months ended September 30, 2024, were $3,853 million, down from $4,431 million in Q3 2023. The revenue breakdown by segment is as follows:
| Segment | Q3 2024 Sales (millions) | Q3 2023 Sales (millions) | % Change |
|---|---|---|---|
| Flat-Rolled | $2,377 | $2,749 | (14)% |
| Mini Mill | $505 | $529 | (5)% |
| USSE | $745 | $838 | (11)% |
| Tubular | $217 | $314 | (31)% |
Cost Structure
For the three months ended September 30, 2024, the company reported the following:
- Gross margin: 12%
- Selling, general and administrative expenses: $104 million
- Interest expense: $5 million
Balance Sheet Highlights
As of September 30, 2024, the condensed consolidated balance sheet highlights are:
| Asset/Liability | Value (millions) |
|---|---|
| Total Assets | $20,633 |
| Total Liabilities | $8,962 |
| Cash and Cash Equivalents | $1,773 |
| Long-term Debt | $4,068 |
Cash Flow Analysis
For the nine months ended September 30, 2024:
- Net cash provided by operating activities: $711 million
- Net cash used in investing activities: $1,784 million
- Net cash used in financing activities: $104 million
Debt Maturity Schedule
The following table summarizes the debt maturity schedule as of September 30, 2024:
| Debt Type | Amount (millions) | Maturity Year |
|---|---|---|
| 2037 Senior Notes | $274 | 2037 |
| 2026 Senior Convertible Notes | $349 | 2026 |
| 2029 Senior Notes | $475 | 2029 |
| Environmental Revenue Bonds | $1,164 | 2024-2053 |
How United States Steel Corporation (X) Makes Money
Revenue Generation
United States Steel Corporation (U.S. Steel) generates revenue primarily through the production, shipping, and delivery of steel products. The company also earns income from raw materials sales, including iron ore pellets and coke by-products, as well as real estate transactions.
Revenue by Segment
The following table summarizes U.S. Steel's net sales by segment for the three months ended September 30, 2024, and 2023:
| Segment | 2024 Net Sales (in millions) | 2023 Net Sales (in millions) | % Change |
|---|---|---|---|
| Flat-Rolled | $2,377 | $2,749 | (14)% |
| Mini Mill | $505 | $529 | (5)% |
| USSE | $745 | $838 | (11)% |
| Tubular | $217 | $314 | (31)% |
| Total | $3,853 | $4,431 | (13)% |
Sales Breakdown by Product
For the three months ended September 30, 2024, the breakdown of net sales by product was as follows:
| Product | Net Sales (in millions) |
|---|---|
| Semi-finished | $30 |
| Hot-rolled sheets | $933 |
| Cold-rolled sheets | $1,039 |
| Coated sheets | $1,171 |
| Tubular products | $223 |
| All Other | $457 |
| Total | $3,853 |
Cost Structure
U.S. Steel's cost structure includes various expenses such as raw materials, energy costs, and operational expenses. For the three months ended September 30, 2024, the following changes in costs were noted:
- Lower raw material costs, including inventory revaluations and CO2 accrual adjustments: approximately $55 million.
- Lower energy costs: approximately $10 million.
- Increased operating costs: approximately $50 million.
Gross Margin Analysis
For the three months ended September 30, 2024, U.S. Steel reported a gross margin of:
- Flat-Rolled: 12%
- Mini Mill: 13%
- USSE: 7%
- Tubular: 5%
These margins reflect the impact of lower sales prices and volumes across most segments compared to the same period in 2023.
Net Earnings
Net earnings attributable to U.S. Steel were reported as follows:
| Period | Net Earnings (in millions) |
|---|---|
| Three Months Ended September 30, 2024 | $119 |
| Three Months Ended September 30, 2023 | $299 |
| Nine Months Ended September 30, 2024 | $473 |
| Nine Months Ended September 30, 2023 | $975 |
Cash Flow and Liquidity
Net cash provided by operating activities for the nine months ended September 30, 2024, was reported as:
- $711 million (down from $1,711 million in 2023).
This decrease was primarily due to lower net earnings and changes in working capital.
Future Outlook
U.S. Steel anticipates fluctuations in the market price of raw materials and other inflationary impacts to affect its results going forward. The company has noted that the fourth quarter performance is expected to be lower due to weak demand and increased energy costs.
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Article updated on 8 Nov 2024
Resources:
- United States Steel Corporation (X) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of United States Steel Corporation (X)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View United States Steel Corporation (X)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.