Skip to main content
You are the owner of this article.
You have permission to edit this article.
Edit
U.S. Steel expects to lose $100 million in the third quarter
urgent

U.S. Steel expects to lose $100 million in the third quarter

{{featured_button_text}}
U.S. Steel expects to lose $100 million in the third quarter

U.S. Steel's corporate headquarters in Pittsburgh is shown.

With its business and the entire steel industry hard-hit by the coronavirus pandemic, U.S. Steel expects to lose $100 million in Earnings Before Taxes, Depreciation and Amortization in the third quarter.

The Pittsburgh-based steelmaker, one of Northwest Indiana's largest employers since it founded the city of Gary as a company town in 1906, is warning shareholders to expect a quarterly loss of $1.45 per share.

“Improving market conditions experienced in June and July have accelerated through August and September. Strengthening steel fundamentals and our ability to respond quickly to increasing customer demand are expected to result in significantly improved adjusted EBITDA in the third quarter,” U. S. Steel President and Chief Executive Officer David B. Burritt said. “We have grown confident in the recovery that is underway in North America and Europe. While we believe this recovery is enduring, we remain relentlessly focused on what we can control, including management actions to stay nimble, reduce costs, and preserve cash.”

U.S. Steel is confident enough that the market for steel is turning around after a low point this spring that it plans to start paying down debt in the third quarter.

“Our successful capital market activities in the second quarter, combined with our optimism in a continued recovery, gives us the confidence to repay a portion of our U.S. ABL borrowing in September," Burritt said. "By the end of the quarter, we plan to repay approximately $900 million of our U.S. ABL, which will place our U.S. ABL borrowings below pre-COVID-19 levels. We continue to proactively review our use of the U.S. ABL as a reliable and low-cost source of capital.”

While volume rebounds, the steelmaker continues to pursue its strategy of diversifying beyond its integrated steel mills, such as Gary Works.

“Our priorities remain unchanged even as market conditions improve,” Burritt said. “Protecting lives and livelihoods continues to be our top priority. We also remain focused on fortifying the balance sheet as we navigate today’s market and better position the company to invest in the recovery. This includes our intent to acquire the remaining stake in Big River Steel, our top strategic priority in pursuit of our world-competitive, ‘best of both’ integrated and mini mill strategy.”

Gallery: World of Steel

0
0
0
0
0

The business news you need

* I understand and agree that registration on or use of this site constitutes agreement to its user agreement and privacy policy.

Business Reporter

Joseph S. Pete is a Lisagor Award-winning business reporter who covers steel, industry, unions, the ports, retail, banking and more. The Indiana University grad has been with The Times since 2013 and blogs about craft beer, culture and the military.

Related to this story

  • Updated

Ford lost $1.9 billion, supplier Lear $294 million, ArcelorMittal $559 million, U.S. Steel $589 million, and BP a whopping, eye-popping $16.8 billion in the second quarter after COVID-19 greatly disrupted daily life and the economy. Ford and Lear temporarily closed their plants in Hegewisch, Chicago Heights, and Hammond. ArcelorMittal and U.S. Steel temporarily laid off hundreds of workers in Northwest Indiana as demand dried up overnight, and BP is now proposing job cuts at the BP Whiting Refinery on the Lake Michigan lakefront.

Get up-to-the-minute news sent straight to your device.

Topics

News Alerts

Breaking News

Crime

Entertainment & Dining

Latest News

Local Sports

NWI Prep Sport News

Weather Alerts