U.S. Steel Reports $299 Million Profit in Third Quarter

SEATTLE (Scrap Monster): U.S. Steel turned a profit of $299 million, or $1.20 per share, in the third quarter.

That's down 38.9% from a $490 million profit or $1.85 per share at the same time last year.

The Pittsburgh-based steelmaker, which operates steel mills in Gary and Portage, brought in adjusted net earnings of $350 million, or $1.40 per share, in the third quarter. That's down from $526 million or $1.98 per share at the same time last year.

“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," U. S. Steel President and CEO David Burritt said.

U.S. Steel made $4.4 billion in net sales in the third quarter, down from $5.2 billion in the third quarter of 2022. But the company said it made progress toward strategic goals, including serving the growing electric vehicle market.

“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," Burritt said. "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.”

The steelmaker's flat-rolled segment, which includes Gary Works and the Midwest Plant in Portage, made $225 million in net sales in the third quarter, down from $518 million in the third quarter of 2022. The business division that includes U.S. Steel's Northwest Indiana operations has made $449 million in sales during the first nine months of the year, down from $1.8 billion during the same period in 2022.

The steelmaker is still contemplating a sale after rejecting an offer by rival Cleveland-Cliffs.

“As we announced in August, the board of directors, with the assistance of the management team and its advisors, is fully engaged in and is progressing a robust and competitive strategic alternatives review process to maximize stockholder value," Burritt said. "Meanwhile, we are focused on running our business safely, delivering on our commitments to customers and executing on our on-going strategic investments to increase stockholder value. We continue to see strong performance in each of these areas. Thank you to our employees for remaining focused on the tasks at-hand and for continuing to put safety first while delivering the high quality steel customers expect.”

Courtesy: www.nwitimes.com