UNITED STATES |
SECURITIES AND EXCHANGE COMMISSION |
Washington, D.C. 20549 |
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FORM 8-K |
CURRENT REPORT |
Pursuant to Section 13 or 15(d) of |
The Securities Exchange Act of 1934 |
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Date of Report (Date of earliest event reported): |
October 28, 2013 |
United States Steel Corporation |
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(Exact name of registrant as specified in its charter) |
Delaware | 1-16811 | 25-1897152 |
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(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
600 Grant Street, Pittsburgh, PA | 15219-2800 |
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(Address of principal executive offices) | (Zip Code) |
(412) 433-1121 |
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(Registrant's telephone number, |
including area code) |
(d) | Exhibits |
99.1 | Press Release dated October 28, 2013, titled “United States Steel Corporation Reports 2013 Third Quarter Results,” together with related unaudited financial information and statistics. |
By | /s/ Gregory A. Zovko |
-------------------------------------- | |
Gregory A. Zovko | |
Vice President & Controller |
• | Total reportable segment and Other Businesses income from operations of $113 million |
• | Results included a non-cash goodwill impairment charge of $1.8 billion |
• | Net loss of $20 million, or $0.14 per diluted share, excluding a $1.8 billion, or $12.24 per diluted share, non-cash goodwill impairment charge |
• | Shipments of 4.7 million tons and net sales of $4.1 billion |
• | Total liquidity of $2.4 billion, including $697 million of cash |
Earnings Highlights | ||||||||||
(Dollars in millions, except per share amounts) | 3Q 2013 | 2Q 2013 | 3Q 2012 | |||||||
Net Sales | $ | 4,131 | $ | 4,429 | $ | 4,652 | ||||
Segment income (loss) from operations | ||||||||||
Flat-rolled | $ | 82 | $ | (51 | ) | $ | 29 | |||
U. S. Steel Europe | (32 | ) | 10 | 27 | ||||||
Tubular | 49 | 45 | 102 | |||||||
Other Businesses | 14 | 43 | 13 | |||||||
Total reportable segment and Other Businesses income from operations | $ | 113 | $ | 47 | $ | 171 | ||||
Postretirement benefit expense | (55 | ) | (54 | ) | (74 | ) | ||||
Other items not allocated to segments | (1,760 | ) | — | (35 | ) | |||||
Income (loss) from operations | $ | (1,702 | ) | $ | (7 | ) | $ | 62 | ||
Net interest and other financial costs | 85 | 68 | 45 | |||||||
Income tax provision (benefit) | 4 | 3 | (27 | ) | ||||||
Less: Net loss attributable to the noncontrolling interests | — | — | — | |||||||
Net (loss) income attributable to United States Steel Corporation | $ | (1,791 | ) | $ | (78 | ) | $ | 44 | ||
-Per basic share | $ | (12.38 | ) | $ | (0.54 | ) | $ | 0.30 | ||
-Per diluted share | $ | (12.38 | ) | $ | (0.54 | ) | $ | 0.28 |
UNITED STATES STEEL CORPORATION | |||||||||||||||||||||
STATEMENT OF OPERATIONS (Unaudited) | |||||||||||||||||||||
Quarter Ended | Nine Months Ended | ||||||||||||||||||||
Sept. 30 | June 30 | Sept. 30 | September 30, | ||||||||||||||||||
(Dollars in millions, except per share amounts) | 2013 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||
NET SALES | $ | 4,131 | $ | 4,429 | $ | 4,652 | $ | 13,155 | $ | 14,841 | |||||||||||
OPERATING EXPENSES (INCOME): | |||||||||||||||||||||
Cost of sales (excludes items shown below) | 3,749 | 4,114 | 4,318 | 12,105 | 13,436 | ||||||||||||||||
Selling, general and administrative expenses | 153 | 151 | 159 | 449 | 490 | ||||||||||||||||
Depreciation, depletion and amortization | 173 | 170 | 163 | 514 | 490 | ||||||||||||||||
(Income) loss from investees | (26 | ) | 3 | (48 | ) | (31 | ) | (116 | ) | ||||||||||||
Impairment of goodwill | 1,783 | — | — | 1,783 | — | ||||||||||||||||
Net (gain) loss on disposal of assets | — | (1 | ) | (1 | ) | — | 308 | ||||||||||||||
Other expense (income), net | 1 | (1 | ) | (1 | ) | 6 | (9 | ) | |||||||||||||
Total operating expenses | 5,833 | 4,436 | 4,590 | 14,826 | 14,599 | ||||||||||||||||
(LOSS) INCOME FROM OPERATIONS | (1,702 | ) | (7 | ) | 62 | (1,671 | ) | 242 | |||||||||||||
Net interest and other financial costs | 85 | 68 | 45 | 257 | 177 | ||||||||||||||||
(LOSS) INCOME BEFORE INCOME TAXES | |||||||||||||||||||||
AND NONCONTROLLING INTERESTS | (1,787 | ) | (75 | ) | 17 | (1,928 | ) | 65 | |||||||||||||
Income tax provision (benefit) | 4 | 3 | (27 | ) | 14 | 139 | |||||||||||||||
Net (loss) income | (1,791 | ) | (78 | ) | 44 | (1,942 | ) | (74 | ) | ||||||||||||
Less: Net loss attributable to the | |||||||||||||||||||||
noncontrolling interests | — | — | — | — | — | ||||||||||||||||
NET (LOSS) INCOME ATTRIBUTABLE TO | |||||||||||||||||||||
UNITED STATES STEEL CORPORATION | $ | (1,791 | ) | $ | (78 | ) | $ | 44 | $ | (1,942 | ) | $ | (74 | ) | |||||||
COMMON STOCK DATA: | |||||||||||||||||||||
Net (loss) income per share attributable to | |||||||||||||||||||||
United States Steel Corporation shareholders: | |||||||||||||||||||||
-Basic | $ | (12.38 | ) | $ | (0.54 | ) | $ | 0.30 | $ | (13.44 | ) | $ | (0.51 | ) | |||||||
-Diluted | $ | (12.38 | ) | $ | (0.54 | ) | $ | 0.28 | $ | (13.44 | ) | $ | (0.51 | ) | |||||||
Weighted average shares, in thousands | |||||||||||||||||||||
-Basic | 144,727 | 144,485 | 144,350 | 144,523 | 144,199 | ||||||||||||||||
-Diluted | 144,727 | 144,485 | 171,673 | 144,523 | 144,199 | ||||||||||||||||
Dividends paid per common share | $ | 0.05 | $ | 0.05 | $ | 0.05 | $ | 0.15 | $ | 0.15 |
UNITED STATES STEEL CORPORATION | ||||||||||
CASH FLOW STATEMENT (Unaudited) | ||||||||||
Nine Months Ended | ||||||||||
September 30, | ||||||||||
(Dollars in millions) | 2013 | 2012 | ||||||||
Cash (used in) provided by operating activities: | ||||||||||
Net loss | $ | (1,942 | ) | $ | (74 | ) | ||||
Depreciation, depletion and amortization | 514 | 490 | ||||||||
Impairment of goodwill | 1,783 | — | ||||||||
Pensions and other postretirement benefits | (143 | ) | (112 | ) | ||||||
Deferred income taxes | 3 | 86 | ||||||||
Net loss on disposal of assets | — | 308 | ||||||||
Working capital changes | 158 | 215 | ||||||||
Income taxes receivable/payable | 1 | 27 | ||||||||
Currency remeasurement loss (gain) | 8 | (13 | ) | |||||||
Other operating activities | 39 | 31 | ||||||||
Total | 421 | 958 | ||||||||
Cash (used in) provided by investing activities: | ||||||||||
Capital expenditures | (328 | ) | (536 | ) | ||||||
Acquisition of intangible assets | (12 | ) | — | |||||||
Disposal of assets | — | 141 | ||||||||
Other investing activities | 31 | (71 | ) | |||||||
Total | (309 | ) | (466 | ) | ||||||
Cash provided by (used in) financing activities: | ||||||||||
Revolving credit facilities | - borrowings | — | 523 | |||||||
- repayments | — | (653 | ) | |||||||
Receivables Purchase Agreement payments | — | (380 | ) | |||||||
Issuance of long-term debt, net of financing costs | 575 | 485 | ||||||||
Repayment of long-term debt | (542 | ) | (319 | ) | ||||||
Dividends paid | (22 | ) | (22 | ) | ||||||
Total | 11 | (366 | ) | |||||||
Effect of exchange rate changes on cash | 4 | 2 | ||||||||
Net increase in cash and cash equivalents | 127 | 128 | ||||||||
Cash and cash equivalents at beginning of the year | 570 | 408 | ||||||||
Cash and cash equivalents at end of the period | $ | 697 | $ | 536 |
UNITED STATES STEEL CORPORATION | |||||||||
CONDENSED BALANCE SHEET (Unaudited) | |||||||||
Sept. 30 | Dec. 31 | ||||||||
(Dollars in millions) | 2013 | 2012 | |||||||
Cash and cash equivalents | $ | 697 | $ | 570 | |||||
Receivables, net | 1,957 | 2,090 | |||||||
Inventories | 2,480 | 2,503 | |||||||
Other current assets | 220 | 211 | |||||||
Total current assets | 5,354 | 5,374 | |||||||
Property, plant and equipment, net | 6,167 | 6,408 | |||||||
Investments and long-term receivables, net | 607 | 609 | |||||||
Goodwill and intangible assets, net | 280 | 2,075 | |||||||
Other assets | 598 | 751 | |||||||
Total assets | $ | 13,006 | $ | 15,217 | |||||
Accounts payable | $ | 1,723 | $ | 1,800 | |||||
Payroll and benefits payable | 965 | 977 | |||||||
Short-term debt and current maturities of long-term debt | 322 | 2 | |||||||
Other current liabilities | 276 | 211 | |||||||
Total current liabilities | 3,286 | 2,990 | |||||||
Long-term debt, less unamortized discount | 3,618 | 3,936 | |||||||
Employee benefits | 3,919 | 4,416 | |||||||
Other long-term liabilities | 408 | 397 | |||||||
United States Steel Corporation stockholders' equity | 1,774 | 3,477 | |||||||
Noncontrolling interests | 1 | 1 | |||||||
Total liabilities and stockholders' equity | $ | 13,006 | $ | 15,217 |
UNITED STATES STEEL CORPORATION | |||||||||||||||||||||
PRELIMINARY SUPPLEMENTAL STATISTICS (Unaudited) | |||||||||||||||||||||
Quarter Ended | Nine Months Ended | ||||||||||||||||||||
Sept. 30 | June 30 | Sept. 30 | September 30, | ||||||||||||||||||
(Dollars in millions) | 2013 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||
INCOME (LOSS) FROM OPERATIONS | |||||||||||||||||||||
Flat-rolled | $ | 82 | $ | (51 | ) | $ | 29 | $ | 18 | $ | 389 | ||||||||||
U. S. Steel Europe | (32 | ) | 10 | 27 | 16 | 27 | (a) | ||||||||||||||
Tubular | 49 | 45 | 102 | 158 | 334 | ||||||||||||||||
Other Businesses | 14 | 43 | 13 | 62 | 46 | ||||||||||||||||
Reportable Segment and Other Businesses Income from Operations | 113 | 47 | 171 | 254 | 796 | ||||||||||||||||
Postretirement benefit expense | (55 | ) | (54 | ) | (74 | ) | (165 | ) | (228 | ) | |||||||||||
Other items not allocated to segments: | |||||||||||||||||||||
Impairment of goodwill | (1,783 | ) | — | — | (1,783 | ) | — | ||||||||||||||
Supplier contract dispute settlement | 23 | — | — | 23 | — | ||||||||||||||||
Loss on sale of U. S. Steel Serbia | — | — | — | — | (399 | ) | |||||||||||||||
Gain on sale of transportation assets | — | — | — | — | 89 | ||||||||||||||||
Property tax settlements | — | — | — | — | 19 | ||||||||||||||||
Labor agreement lump sum payments | — | — | (35 | ) | — | (35 | ) | ||||||||||||||
Total (Loss) Income from Operations | $ | (1,702 | ) | $ | (7 | ) | $ | 62 | $ | (1,671 | ) | $ | 242 | ||||||||
CAPITAL EXPENDITURES | |||||||||||||||||||||
Flat-rolled | $ | 72 | $ | 80 | $ | 117 | $ | 248 | $ | 484 | |||||||||||
U. S. Steel Europe | 14 | 8 | 12 | 32 | 21 | ||||||||||||||||
Tubular | 19 | 15 | 7 | 42 | 25 | ||||||||||||||||
Other Businesses | 2 | 2 | 3 | 6 | 6 | ||||||||||||||||
Total | $ | 107 | $ | 105 | $ | 139 | $ | 328 | $ | 536 |
UNITED STATES STEEL CORPORATION | |||||||||||||||||
PRELIMINARY SUPPLEMENTAL STATISTICS (Unaudited) | |||||||||||||||||
Quarter Ended | Nine Months Ended | ||||||||||||||||
Sept. 30 | June 30 | Sept. 30 | September 30, | ||||||||||||||
2013 | 2013 | 2012 | 2013 | 2012 | |||||||||||||
OPERATING STATISTICS | |||||||||||||||||
Average realized price: ($/net ton) (a) | |||||||||||||||||
Flat-rolled | 752 | 725 | 741 | 731 | 759 | ||||||||||||
U. S. Steel Europe | 714 | 702 | 731 | 711 | 749 | ||||||||||||
USSK | 714 | 702 | 731 | 711 | 751 | ||||||||||||
Tubular | 1,543 | 1,510 | 1,676 | 1,536 | 1,704 | ||||||||||||
Steel Shipments: (a) (b) | |||||||||||||||||
Flat-rolled | 3,428 | 3,728 | 3,972 | 11,174 | 12,050 | ||||||||||||
U. S. Steel Europe | 861 | 1,062 | 911 | 2,971 | 2,911 | ||||||||||||
Tubular | 459 | 456 | 457 | 1,343 | 1,479 | ||||||||||||
Total Steel Shipments | 4,748 | 5,246 | 5,340 | 15,488 | 16,440 | ||||||||||||
USSK Steel Shipments | 861 | 1,062 | 911 | 2,971 | 2,838 | ||||||||||||
Intersegment Shipments: (b) | |||||||||||||||||
Flat-rolled to Tubular | 450 | 445 | 456 | 1,336 | 1,415 | ||||||||||||
U. S. Steel Europe to Flat-rolled | — | — | 128 | — | 249 | ||||||||||||
Raw Steel Production: (b) | |||||||||||||||||
Flat-rolled | 4,261 | 4,212 | 4,699 | 13,393 | 14,430 | ||||||||||||
U. S. Steel Europe | 1,032 | 1,158 | 1,140 | 3,393 | 3,553 | ||||||||||||
USSK | 1,032 | 1,158 | 1,140 | 3,393 | 3,465 | ||||||||||||
Raw Steel Capability Utilization: (c) | |||||||||||||||||
Flat-rolled | 70 | % | 70 | % | 77 | % | 74 | % | 79 | % | |||||||
Flat-rolled U.S. Facilities (d) | 87 | % | 87 | % | 83 | % | 88 | % | 86 | % | |||||||
U. S. Steel Europe | 82 | % | 93 | % | 90 | % | 91 | % | 90 | % | |||||||
USSK | 82 | % | 93 | % | 90 | % | 91 | % | 92 | % |