UNITED STATES |
SECURITIES AND EXCHANGE COMMISSION |
Washington, D.C. 20549 |
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FORM 8-K/A |
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): |
July 29, 2014 |
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 July 29, 2014, titled “United States Steel Corporation Reports 2014 Second Quarter Results and Improving Third Quarter Outlook,” together with related unaudited financial information and statistics. |
By | /s/ Colleen M. Darragh |
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Colleen M. Darragh | |
Acting Controller |
• | Total reportable segment and Other Businesses income from operations of $132 million |
• | Net loss of $18 million, or $0.12 per diluted share; adjusted net income of $25 million, or $0.17 per diluted share |
• | Cash from operations of $0.8 billion; total liquidity of $3.2 billion, including $1.5 billion of cash |
Earnings Highlights | ||||||||||
(Dollars in millions, except per share amounts) | 2Q 2014 | 1Q 2014 | 2Q 2013 | |||||||
Net Sales | $ | 4,400 | $ | 4,448 | $ | 4,429 | ||||
Segment income (loss) from operations | ||||||||||
Flat-rolled | $ | 30 | $ | 85 | $ | (51 | ) | |||
U. S. Steel Europe | 38 | 32 | 10 | |||||||
Tubular | 47 | 24 | 45 | |||||||
Other Businesses | 17 | 13 | 43 | |||||||
Total reportable segment and Other Businesses income from operations | $ | 132 | $ | 154 | $ | 47 | ||||
Postretirement benefit expense | (32 | ) | (32 | ) | (54 | ) | ||||
Other items not allocated to segments | (65 | ) | — | — | ||||||
Income (loss) from operations | $ | 35 | $ | 122 | $ | (7 | ) | |||
Net interest and other financial costs | 64 | 69 | 68 | |||||||
Income tax (benefit) provision | (11 | ) | 1 | 3 | ||||||
Less: Net loss attributable to the noncontrolling interests | — | — | — | |||||||
Net (loss) income attributable to United States Steel Corporation | $ | (18 | ) | $ | 52 | $ | (78 | ) | ||
-Per basic share | $ | (0.12 | ) | $ | 0.36 | $ | (0.54 | ) | ||
-Per diluted share | $ | (0.12 | ) | $ | 0.34 | $ | (0.54 | ) |
UNITED STATES STEEL CORPORATION | |||||||||||||||||||||
STATEMENT OF OPERATIONS (Unaudited) | |||||||||||||||||||||
Quarter Ended | Six Months Ended | ||||||||||||||||||||
June 30 | March 31 | June 30 | June 30, | ||||||||||||||||||
(Dollars in millions, except per share amounts) | 2014 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||
NET SALES | $ | 4,400 | $ | 4,448 | $ | 4,429 | $ | 8,848 | $ | 9,024 | |||||||||||
OPERATING EXPENSES (INCOME): | |||||||||||||||||||||
Cost of sales (excludes items shown below) | 4,097 | 4,038 | 4,114 | 8,135 | 8,356 | ||||||||||||||||
Selling, general and administrative expenses | 143 | 138 | 151 | 281 | 296 | ||||||||||||||||
Depreciation, depletion and amortization | 165 | 166 | 170 | 331 | 341 | ||||||||||||||||
(Income) loss from investees | (57 | ) | 4 | 3 | (53 | ) | (5 | ) | |||||||||||||
Restructuring and other charges | 18 | — | — | 18 | — | ||||||||||||||||
Net gain on disposal of assets | (1 | ) | (20 | ) | (1 | ) | (21 | ) | — | ||||||||||||
Other (income) expense, net | — | — | (1 | ) | — | 5 | |||||||||||||||
Total operating expenses | 4,365 | 4,326 | 4,436 | 8,691 | 8,993 | ||||||||||||||||
INCOME (LOSS) FROM OPERATIONS | 35 | 122 | (7 | ) | 157 | 31 | |||||||||||||||
Net interest and other financial costs | 64 | 69 | 68 | 133 | 172 | ||||||||||||||||
(LOSS) INCOME BEFORE INCOME TAXES | |||||||||||||||||||||
AND NONCONTROLLING INTERESTS | (29 | ) | 53 | (75 | ) | 24 | (141 | ) | |||||||||||||
Income tax (benefit) provision | (11 | ) | 1 | 3 | (10 | ) | 10 | ||||||||||||||
Net (loss) income | (18 | ) | 52 | (78 | ) | 34 | (151 | ) | |||||||||||||
Less: Net loss attributable to the | |||||||||||||||||||||
noncontrolling interests | — | — | — | — | — | ||||||||||||||||
NET (LOSS) INCOME ATTRIBUTABLE TO | |||||||||||||||||||||
UNITED STATES STEEL CORPORATION | $ | (18 | ) | $ | 52 | $ | (78 | ) | $ | 34 | $ | (151 | ) | ||||||||
COMMON STOCK DATA: | |||||||||||||||||||||
Net (loss) income per share attributable to | |||||||||||||||||||||
United States Steel Corporation shareholders: | |||||||||||||||||||||
-Basic | $ | (0.12 | ) | $ | 0.36 | $ | (0.54 | ) | $ | 0.23 | $ | (1.05 | ) | ||||||||
-Diluted | $ | (0.12 | ) | $ | 0.34 | $ | (0.54 | ) | $ | 0.23 | $ | (1.05 | ) | ||||||||
Weighted average shares, in thousands | |||||||||||||||||||||
-Basic | 144,884 | 144,757 | 144,485 | 144,821 | 144,419 | ||||||||||||||||
-Diluted | 144,884 | 156,114 | 144,485 | 146,144 | 144,419 | ||||||||||||||||
Dividends paid per common share | $ | 0.05 | $ | 0.05 | $ | 0.05 | $ | 0.10 | $ | 0.10 |
UNITED STATES STEEL CORPORATION | ||||||||||
CASH FLOW STATEMENT (Unaudited) | ||||||||||
Six Months Ended | ||||||||||
June 30, | ||||||||||
(Dollars in millions) | 2014 | 2013 | ||||||||
Cash provided by (used in) operating activities: | ||||||||||
Net income (loss) | $ | 34 | $ | (151 | ) | |||||
Depreciation, depletion and amortization | 331 | 341 | ||||||||
Non-cash restructuring and other charges | 18 | — | ||||||||
Pensions and other postretirement benefits | (59 | ) | 10 | |||||||
Deferred income taxes | 16 | (2 | ) | |||||||
Net gain on disposal of assets | (21 | ) | — | |||||||
Working capital changes | 833 | 162 | ||||||||
Income taxes receivable/payable | 153 | (3 | ) | |||||||
Currency remeasurement loss | 3 | 21 | ||||||||
Other operating activities | 45 | 6 | ||||||||
Total | 1,353 | 384 | ||||||||
Cash (used in) provided by investing activities: | ||||||||||
Capital expenditures | (186 | ) | (221 | ) | ||||||
Acquisition of intangible assets | — | (12 | ) | |||||||
Disposal of assets | 26 | 1 | ||||||||
Other investing activities | 13 | 28 | ||||||||
Total | (147 | ) | (204 | ) | ||||||
Cash (used in) provided by financing activities: | ||||||||||
Issuance of long-term debt, net of financing costs | — | 576 | ||||||||
Repayment of long-term debt | (322 | ) | (542 | ) | ||||||
Receipts from exercise of stock options | 1 | — | ||||||||
Dividends paid | (15 | ) | (14 | ) | ||||||
Total | (336 | ) | 20 | |||||||
Effect of exchange rate changes on cash | (3 | ) | (3 | ) | ||||||
Net increase in cash and cash equivalents | 867 | 197 | ||||||||
Cash and cash equivalents at beginning of the year | 604 | 570 | ||||||||
Cash and cash equivalents at end of the period | $ | 1,471 | $ | 767 |
UNITED STATES STEEL CORPORATION | |||||||||
CONDENSED BALANCE SHEET (Unaudited) | |||||||||
June 30 | Dec. 31 | ||||||||
(Dollars in millions) | 2014 | 2013 | |||||||
Cash and cash equivalents | $ | 1,471 | $ | 604 | |||||
Receivables, net | 2,086 | 2,160 | |||||||
Inventories | 2,337 | 2,688 | |||||||
Other current assets | 633 | 626 | |||||||
Total current assets | 6,527 | 6,078 | |||||||
Property, plant and equipment, net | 5,736 | 5,922 | |||||||
Investments and long-term receivables, net | 622 | 621 | |||||||
Intangible assets, net | 266 | 271 | |||||||
Other assets | 255 | 251 | |||||||
Total assets | $ | 13,406 | $ | 13,143 | |||||
Accounts payable | $ | 2,294 | $ | 1,754 | |||||
Payroll and benefits payable | 998 | 974 | |||||||
Short-term debt and current maturities of long-term debt | 20 | 323 | |||||||
Other current liabilities | 209 | 194 | |||||||
Total current liabilities | 3,521 | 3,245 | |||||||
Long-term debt, less unamortized discount | 3,605 | 3,616 | |||||||
Employee benefits | 1,841 | 2,064 | |||||||
Other long-term liabilities (a) | 925 | 842 | |||||||
United States Steel Corporation stockholders' equity (a) | 3,513 | 3,375 | |||||||
Noncontrolling interests | 1 | 1 | |||||||
Total liabilities and stockholders' equity | $ | 13,406 | $ | 13,143 |
UNITED STATES STEEL CORPORATION | ||||||||||||
RECONCILIATION OF ADJUSTED NET INCOME (LOSS) | ||||||||||||
Quarter Ended | ||||||||||||
June 30 | March 31 | June 30 | ||||||||||
(Dollars in millions, except per share amounts) | 2014 | 2014 | 2013 | |||||||||
Reconciliation to net income (loss) attributable to United States Steel Corporation | ||||||||||||
Adjusted net income (loss) attributable to United States Steel Corporation | $ | 25 | $ | 52 | $ | (78 | ) | |||||
Litigation reserves | (46 | ) | — | — | ||||||||
Loss on assets held for sale | (9 | ) | — | — | ||||||||
Curtailment gain | 12 | — | — | |||||||||
Net (loss) income attributable to United States Steel Corporation, as reported | $ | (18 | ) | $ | 52 | (78 | ) | |||||
Reconciliation to diluted net income (loss) per share | ||||||||||||
Adjusted diluted net income (loss) per share | $ | 0.17 | $ | 0.34 | $ | (0.54 | ) | |||||
Litigation reserves | (0.31 | ) | — | — | ||||||||
Loss on assets held for sale | (0.06 | ) | — | — | ||||||||
Curtailment gain | 0.08 | — | — | |||||||||
Diluted net (loss) income per share, as reported | $ | (0.12 | ) | $ | 0.34 | $ | (0.54 | ) |
UNITED STATES STEEL CORPORATION | ||||||||||||||||||||
PRELIMINARY SUPPLEMENTAL STATISTICS (Unaudited) | ||||||||||||||||||||
Quarter Ended | Six Months Ended | |||||||||||||||||||
June 30 | March 31 | June 30 | June 30, | |||||||||||||||||
(Dollars in millions) | 2014 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
INCOME (LOSS) FROM OPERATIONS | ||||||||||||||||||||
Flat-rolled | $ | 30 | $ | 85 | $ | (51 | ) | $ | 115 | $ | (64 | ) | ||||||||
U. S. Steel Europe | 38 | 32 | 10 | 70 | 48 | |||||||||||||||
Tubular | 47 | 24 | 45 | 71 | 109 | |||||||||||||||
Other Businesses | 17 | 13 | 43 | 30 | 48 | |||||||||||||||
Reportable Segment and Other Businesses Income from Operations | 132 | 154 | 47 | 286 | 141 | |||||||||||||||
Postretirement benefit expense | (32 | ) | (32 | ) | (54 | ) | (64 | ) | (110 | ) | ||||||||||
Other items not allocated to segments: | ||||||||||||||||||||
Litigation reserves | (70 | ) | — | — | (70 | ) | — | |||||||||||||
Loss on assets held for sale | (14 | ) | — | — | (14 | ) | — | |||||||||||||
Curtailment gain | 19 | — | — | 19 | — | |||||||||||||||
Total Income (Loss) from Operations | $ | 35 | $ | 122 | $ | (7 | ) | $ | 157 | $ | 31 | |||||||||
CAPITAL EXPENDITURES | ||||||||||||||||||||
Flat-rolled | $ | 47 | $ | 55 | $ | 80 | $ | 102 | $ | 176 | ||||||||||
U. S. Steel Europe | 17 | 18 | 8 | 35 | 18 | |||||||||||||||
Tubular | 31 | 16 | 15 | 47 | 23 | |||||||||||||||
Other Businesses | 1 | 1 | 2 | 2 | 4 | |||||||||||||||
Total | $ | 96 | $ | 90 | $ | 105 | $ | 186 | $ | 221 |
UNITED STATES STEEL CORPORATION | |||||||||||||||||
PRELIMINARY SUPPLEMENTAL STATISTICS (Unaudited) | |||||||||||||||||
Quarter Ended | Six Months Ended | ||||||||||||||||
June 30 | March 31 | June 30 | June 30, | ||||||||||||||
2014 | 2014 | 2013 | 2014 | 2013 | |||||||||||||
OPERATING STATISTICS | |||||||||||||||||
Average realized price: ($/net ton) (a) | |||||||||||||||||
Flat-rolled | 774 | 761 | 725 | 767 | 722 | ||||||||||||
U. S. Steel Europe | 691 | 710 | 702 | 700 | 710 | ||||||||||||
Tubular | 1,479 | 1,479 | 1,510 | 1,479 | 1,532 | ||||||||||||
Steel Shipments: (a) (b) | |||||||||||||||||
Flat-rolled | 3,527 | 3,674 | 3,728 | 7,201 | 7,746 | ||||||||||||
U. S. Steel Europe | 1,053 | 1,031 | 1,062 | 2,084 | 2,110 | ||||||||||||
Tubular | 449 | 419 | 456 | 868 | 884 | ||||||||||||
Total Steel Shipments | 5,029 | 5,124 | 5,246 | 10,153 | 10,740 | ||||||||||||
Intersegment Shipments: (b) | |||||||||||||||||
Flat-rolled to Tubular | 457 | 435 | 445 | 892 | 886 | ||||||||||||
U. S. Steel Europe to Flat-rolled | 75 | — | — | 75 | — | ||||||||||||
Raw Steel Production: (b) | |||||||||||||||||
Flat-rolled | 4,132 | 4,491 | 4,212 | 8,623 | 9,132 | ||||||||||||
U. S. Steel Europe | 1,223 | 1,141 | 1,158 | 2,364 | 2,361 | ||||||||||||
Raw Steel Capability Utilization: (c) | |||||||||||||||||
Flat-rolled | 75 | % | 83 | % | 70 | % | 79 | % | 76 | % | |||||||
Flat-rolled U.S. Facilities (d) | 73 | % | 81 | % | 87 | % | 77 | % | 89 | % | |||||||
U. S. Steel Europe | 98 | % | 93 | % | 93 | % | 95 | % | 95 | % |