US Steel today reported first quarter 2018 net earnings of $18 million, compared to a first quarter 2017 net loss of $180 million. Revenues for the quarter totaled $3.12 billion, compared to $2.73 billion in Q1 2017.
Total steel shipments for the quarter reached 2.53 million tons for flat-rolled products and 179,000 tons of tubular products.
Commenting on the company’s results, President and Chief Executive Officer David B. Burritt said, "Our performance was significantly better than the first quarter of 2017, with improved results for all three of our reportable segments enabling four consecutive quarters of more predictable EBITDA. In spite of operational issues related to weather and ongoing challenges with assets not yet revitalized, the first quarter of 2018 was in line with our expectations. During the first quarter, we also continued to improve our risk profile and strengthen our balance sheet through the successful completion of a $650 million senior unsecured notes offering, and the subsequent repayment of $780 million of our senior secured notes, with the repayment of the final $281 million being completed on April 12."
Commenting on US Steel’s guidance for 2018, Burritt said, "We are beginning the second year of our asset revitalization program, and we are already seeing benefits from the investments in our assets. It is prudent for us to anticipate the possibility of continued operational volatility for those assets yet to be revitalized. We remain focused on managing operating volatility to ensure we take care of our customers, and the restart of steelmaking at Granite City will increase our ability to do so. While there is uncertainty about how country exemption and product exclusion requests related to Section 232 will be resolved, we continue to invest in revitalizing our assets and developing innovative customer solutions. We are confident we will deliver our 2020 performance objectives."
US Steel expects second quarter 2018 adjusted EBITDA will be approximately $400 million, and full-year 2018 adjusted EBITDA will be approximately $1.7 - $1.8 billion.