UNITED STATES |
SECURITIES AND EXCHANGE COMMISSION |
Washington, D.C. 20549 |
----------------------- |
FORM 8-K |
CURRENT REPORT |
Pursuant to Section 13 or 15(d) of |
The Securities Exchange Act of 1934 |
----------------------- |
Date of Report (Date of earliest event reported): |
January 27, 2014 |
United States Steel Corporation |
----------------------------------------------------------------------------------- |
(Exact name of registrant as specified in its charter) |
Delaware | 1-16811 | 25-1897152 |
--------------- | ------------------------ | ------------------- |
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
600 Grant Street, Pittsburgh, PA | 15219-2800 |
--------------------------------------- | ---------- |
(Address of principal executive offices) | (Zip Code) |
(412) 433-1121 |
------------------------------ |
(Registrant's telephone number, |
including area code) |
(d) | Exhibits |
99.1 | Press Release dated January 27, 2014, titled “United States Steel Corporation Reports 2013 Fourth Quarter and Full-year 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 $146 million |
• | Net loss of $122 million, or $0.84 per diluted share; adjusted net income of $38 million, or $0.27 per diluted share, excluding non-cash restructuring and other charges of $302 million, or $2.09 per diluted share, and a favorable tax-related item of $142 million, or $0.98 per diluted share |
• | Shipments of 4.9 million tons and net sales of $4.3 billion |
• | Total liquidity of $2.3 billion, including $604 million of cash |
• | Full-year total reportable segment and Other Businesses income from operations of $400 million |
Earnings Highlights | ||||||||||||||||
(Dollars in millions, except per share amounts) | 4Q 2013 | 3Q 2013 | 4Q 2012 | 2013 | 2012 | |||||||||||
Net Sales | $ | 4,269 | $ | 4,131 | $ | 4,487 | $ | 17,424 | $ | 19,328 | ||||||
Segment income (loss) from operations | ||||||||||||||||
Flat-rolled | $ | 87 | $ | 82 | $ | 11 | $ | 105 | $ | 400 | ||||||
U. S. Steel Europe | 12 | (32 | ) | 7 | 28 | 34 | ||||||||||
Tubular | 32 | 49 | 32 | 190 | 366 | |||||||||||
Other Businesses | 15 | 14 | 9 | 77 | 55 | |||||||||||
Total reportable segment and Other Businesses income from operations | $ | 146 | $ | 113 | $ | 59 | $ | 400 | $ | 855 | ||||||
Postretirement benefit expense | (56 | ) | (55 | ) | (69 | ) | (221 | ) | (297 | ) | ||||||
Other items not allocated to segments | (319 | ) | (1,760 | ) | 15 | (2,079 | ) | (311 | ) | |||||||
Income (loss) from operations | $ | (229 | ) | $ | (1,702 | ) | $ | 5 | $ | (1,900 | ) | $ | 247 | |||
Net interest and other financial costs | 75 | 85 | 64 | 332 | 241 | |||||||||||
Income tax (benefit) provision | (182 | ) | 4 | (8 | ) | (168 | ) | 131 | ||||||||
Less: Net loss attributable to the noncontrolling interests | — | — | (1 | ) | — | (1 | ) | |||||||||
Net loss attributable to United States Steel Corporation | $ | (122 | ) | $ | (1,791 | ) | $ | (50 | ) | $ | (2,064 | ) | $ | (124 | ) | |
-Per basic share | $ | (0.84 | ) | $ | (12.38 | ) | $ | (0.35 | ) | $ | (14.27 | ) | $ | (0.86 | ) | |
-Per diluted share | $ | (0.84 | ) | $ | (12.38 | ) | $ | (0.35 | ) | $ | (14.27 | ) | $ | (0.86 | ) |
UNITED STATES STEEL CORPORATION | |||||||||||||||||||||
STATEMENT OF OPERATIONS (Unaudited) | |||||||||||||||||||||
Quarter Ended | Year Ended | ||||||||||||||||||||
Dec. 31 | Sept. 30 | Dec. 31 | December 31, | ||||||||||||||||||
(Dollars in millions, except per share amounts) | 2013 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||
NET SALES | $ | 4,269 | $ | 4,131 | $ | 4,487 | $ | 17,424 | $ | 19,328 | |||||||||||
OPERATING EXPENSES (INCOME): | |||||||||||||||||||||
Cost of sales (excludes items shown below) | 3,911 | 3,749 | 4,216 | 16,016 | 17,630 | ||||||||||||||||
Selling, general and administrative expenses | 161 | 153 | 142 | 610 | 654 | ||||||||||||||||
Depreciation, depletion and amortization | 170 | 173 | 171 | 684 | 661 | ||||||||||||||||
Income from investees | (9 | ) | (26 | ) | (28 | ) | (40 | ) | (144 | ) | |||||||||||
Impairment of goodwill | 23 | 1,783 | — | 1,806 | — | ||||||||||||||||
Restructuring and other charges | 248 | — | — | 248 | — | ||||||||||||||||
Net (gain) loss on disposal of assets | — | — | (12 | ) | — | 296 | |||||||||||||||
Other (income) expense, net | (6 | ) | 1 | (7 | ) | — | (16 | ) | |||||||||||||
Total operating expenses | 4,498 | 5,833 | 4,482 | 19,324 | 19,081 | ||||||||||||||||
(LOSS) INCOME FROM OPERATIONS | (229 | ) | (1,702 | ) | 5 | (1,900 | ) | 247 | |||||||||||||
Net interest and other financial costs | 75 | 85 | 64 | 332 | 241 | ||||||||||||||||
(LOSS) INCOME BEFORE INCOME TAXES | |||||||||||||||||||||
AND NONCONTROLLING INTERESTS | (304 | ) | (1,787 | ) | (59 | ) | (2,232 | ) | 6 | ||||||||||||
Income tax (benefit) provision | (182 | ) | 4 | (8 | ) | (168 | ) | 131 | |||||||||||||
Net loss | (122 | ) | (1,791 | ) | (51 | ) | (2,064 | ) | (125 | ) | |||||||||||
Less: Net loss attributable to the | |||||||||||||||||||||
noncontrolling interests | — | — | (1 | ) | — | (1 | ) | ||||||||||||||
NET LOSS ATTRIBUTABLE TO | |||||||||||||||||||||
UNITED STATES STEEL CORPORATION | $ | (122 | ) | $ | (1,791 | ) | $ | (50 | ) | $ | (2,064 | ) | $ | (124 | ) | ||||||
COMMON STOCK DATA: | |||||||||||||||||||||
Net loss per share attributable to | |||||||||||||||||||||
United States Steel Corporation shareholders: | |||||||||||||||||||||
-Basic | $ | (0.84 | ) | $ | (12.38 | ) | $ | (0.35 | ) | $ | (14.27 | ) | $ | (0.86 | ) | ||||||
-Diluted | $ | (0.84 | ) | $ | (12.38 | ) | $ | (0.35 | ) | $ | (14.27 | ) | $ | (0.86 | ) | ||||||
Weighted average shares, in thousands | |||||||||||||||||||||
-Basic | 144,740 | 144,727 | 144,351 | 144,578 | 144,237 | ||||||||||||||||
-Diluted | 144,740 | 144,727 | 144,351 | 144,578 | 144,237 | ||||||||||||||||
Dividends paid per common share | $ | 0.05 | $ | 0.05 | $ | 0.05 | $ | 0.20 | $ | 0.20 |
UNITED STATES STEEL CORPORATION | ||||||||||
CASH FLOW STATEMENT (Unaudited) | ||||||||||
Year Ended | ||||||||||
December 31, | ||||||||||
(Dollars in millions) | 2013 | 2012 | ||||||||
Cash (used in) provided by operating activities: | ||||||||||
Net loss | $ | (2,064 | ) | $ | (125 | ) | ||||
Depreciation, depletion and amortization | 684 | 661 | ||||||||
Impairment of goodwill | 1,806 | — | ||||||||
Non-cash restructuring and other charges | 248 | — | ||||||||
Pensions and other postretirement benefits | (28 | ) | (181 | ) | ||||||
Deferred income taxes | (232 | ) | 74 | |||||||
Net loss on disposal of assets | — | 296 | ||||||||
Working capital changes | (148 | ) | 326 | |||||||
Income taxes receivable/payable | 55 | 17 | ||||||||
Currency remeasurement loss (gain) | 7 | (15 | ) | |||||||
Other operating activities | 86 | 82 | ||||||||
Total | 414 | 1,135 | ||||||||
Cash (used in) provided by investing activities: | ||||||||||
Capital expenditures | (477 | ) | (723 | ) | ||||||
Acquisition of intangible assets | (12 | ) | — | |||||||
Disposal of assets | 3 | 155 | ||||||||
Other investing activities | 93 | (34 | ) | |||||||
Total | (393 | ) | (602 | ) | ||||||
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 | (29 | ) | (29 | ) | ||||||
Total | 4 | (373 | ) | |||||||
Effect of exchange rate changes on cash | 9 | 2 | ||||||||
Net increase in cash and cash equivalents | 34 | 162 | ||||||||
Cash and cash equivalents at beginning of the year | 570 | 408 | ||||||||
Cash and cash equivalents at end of the period | $ | 604 | $ | 570 |
UNITED STATES STEEL CORPORATION | |||||||||
CONDENSED BALANCE SHEET (Unaudited) | |||||||||
Dec. 31 | Dec. 31 | ||||||||
(Dollars in millions) | 2013 | 2012 | |||||||
Cash and cash equivalents | $ | 604 | $ | 570 | |||||
Receivables, net | 1,984 | 2,090 | |||||||
Inventories | 2,688 | 2,503 | |||||||
Other current assets | 482 | 333 | |||||||
Total current assets | 5,758 | 5,496 | |||||||
Property, plant and equipment, net | 5,922 | 6,408 | |||||||
Investments and long-term receivables, net | 621 | 609 | |||||||
Goodwill and intangible assets, net | 275 | 2,075 | |||||||
Other assets | 247 | 629 | |||||||
Total assets | $ | 12,823 | $ | 15,217 | |||||
Accounts payable | $ | 1,754 | $ | 1,800 | |||||
Payroll and benefits payable | 974 | 977 | |||||||
Short-term debt and current maturities of long-term debt | 323 | 2 | |||||||
Other current liabilities | 262 | 211 | |||||||
Total current liabilities | 3,313 | 2,990 | |||||||
Long-term debt, less unamortized discount | 3,616 | 3,936 | |||||||
Employee benefits | 2,064 | 4,416 | |||||||
Other long-term liabilities | 851 | 397 | |||||||
United States Steel Corporation stockholders' equity | 2,978 | 3,477 | |||||||
Noncontrolling interests | 1 | 1 | |||||||
Total liabilities and stockholders' equity | $ | 12,823 | $ | 15,217 |
UNITED STATES STEEL CORPORATION | |||||||||||||||||||||
PRELIMINARY SUPPLEMENTAL STATISTICS (Unaudited) | |||||||||||||||||||||
Quarter Ended | Year Ended | ||||||||||||||||||||
Dec. 31 | Sept. 30 | Dec. 31 | December 31, | ||||||||||||||||||
(Dollars in millions) | 2013 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||
INCOME (LOSS) FROM OPERATIONS | |||||||||||||||||||||
Flat-rolled | $ | 87 | $ | 82 | $ | 11 | $ | 105 | $ | 400 | |||||||||||
U. S. Steel Europe | 12 | (32 | ) | 7 | 28 | 34 | (a) | ||||||||||||||
Tubular | 32 | 49 | 32 | 190 | 366 | ||||||||||||||||
Other Businesses | 15 | 14 | 9 | 77 | 55 | ||||||||||||||||
Reportable Segment and Other Businesses Income from Operations | 146 | 113 | 59 | 400 | 855 | ||||||||||||||||
Postretirement benefit expense | (56 | ) | (55 | ) | (69 | ) | (221 | ) | (297 | ) | |||||||||||
Other items not allocated to segments: | |||||||||||||||||||||
Impairment of goodwill | (23 | ) | (1,783 | ) | — | (1,806 | ) | — | |||||||||||||
Restructuring and other charges | (248 | ) | — | — | (248 | ) | — | ||||||||||||||
Environmental remediation charge | (32 | ) | — | — | (32 | ) | — | ||||||||||||||
Write-off of equity investment | (16 | ) | — | — | (16 | ) | — | ||||||||||||||
Supplier contract dispute settlement | — | 23 | 15 | 23 | 15 | ||||||||||||||||
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 | ) | |||||||||||||||
Total (Loss) Income from Operations | $ | (229 | ) | $ | (1,702 | ) | $ | 5 | $ | (1,900 | ) | $ | 247 | ||||||||
CAPITAL EXPENDITURES | |||||||||||||||||||||
Flat-rolled | $ | 101 | $ | 72 | $ | 141 | $ | 349 | $ | 625 | |||||||||||
U. S. Steel Europe | 8 | 14 | 17 | 40 | 38 | ||||||||||||||||
Tubular | 27 | 19 | 17 | 69 | 42 | ||||||||||||||||
Other Businesses | 13 | 2 | 12 | 19 | 18 | ||||||||||||||||
Total | $ | 149 | $ | 107 | $ | 187 | $ | 477 | $ | 723 |
UNITED STATES STEEL CORPORATION | |||||||||||||||||
PRELIMINARY SUPPLEMENTAL STATISTICS (Unaudited) | |||||||||||||||||
Quarter Ended | Year Ended | ||||||||||||||||
Dec. 31 | Sept. 30 | Dec. 31 | December 31, | ||||||||||||||
2013 | 2013 | 2012 | 2013 | 2012 | |||||||||||||
OPERATING STATISTICS | |||||||||||||||||
Average realized price: ($/net ton) (a) | |||||||||||||||||
Flat-rolled | 750 | 752 | 721 | 735 | 750 | ||||||||||||
U. S. Steel Europe | 692 | 714 | 718 | 706 | 742 | ||||||||||||
USSK | 692 | 714 | 718 | 706 | 743 | ||||||||||||
Tubular | 1,509 | 1,543 | 1,624 | 1,530 | 1,687 | ||||||||||||
Steel Shipments: (a) (b) | |||||||||||||||||
Flat-rolled | 3,470 | 3,428 | 3,924 | 14,644 | 15,974 | ||||||||||||
U. S. Steel Europe | 1,029 | 861 | 905 | 4,000 | 3,816 | ||||||||||||
Tubular | 414 | 459 | 407 | 1,757 | 1,886 | ||||||||||||
Total Steel Shipments | 4,913 | 4,748 | 5,236 | 20,401 | 21,676 | ||||||||||||
USSK Steel Shipments | 1,029 | 861 | 905 | 4,000 | 3,743 | ||||||||||||
Intersegment Shipments: (b) | |||||||||||||||||
Flat-rolled to Tubular | 363 | 450 | 393 | 1,699 | 1,803 | ||||||||||||
U. S. Steel Europe to Flat-rolled | — | — | — | — | 249 | ||||||||||||
Raw Steel Production: (b) | |||||||||||||||||
Flat-rolled | 4,474 | 4,261 | 4,686 | 17,867 | 19,116 | ||||||||||||
U. S. Steel Europe | 1,205 | 1,032 | 969 | 4,598 | 4,522 | ||||||||||||
USSK | 1,205 | 1,032 | 969 | 4,598 | 4,434 | ||||||||||||
Raw Steel Capability Utilization: (c) | |||||||||||||||||
Flat-rolled | 73 | % | 70 | % | 77 | % | 74 | % | 78 | % | |||||||
Flat-rolled U.S. Facilities (d) | 80 | % | 87 | % | 84 | % | 86 | % | 86 | % | |||||||
U. S. Steel Europe | 96 | % | 82 | % | 77 | % | 92 | % | 87 | % | |||||||
USSK | 96 | % | 82 | % | 77 | % | 92 | % | 88 | % |