U.S. Steel Posted Net Loss in Q2 2020

SEATTLE (Scrap Monster): Pittsburgh-headquartered integrated steelmaker United States Steel Corporation (U.S. Steel) reported net loss of $589 million or $3.36 per diluted share during the second quarter 2020. The adjusted net loss was $469 million, or $2.67per diluted share. This is in comparison with second quarter 2019 net earnings of $68 million, or $0.39 per diluted share.

The adjusted net earnings for Q2 2019 were $78 million or $0.45 per diluted share. The liquidity stood at $2.652 billion at the end of Q2 this year.

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U.S. Steel exceeded its Q2 guidance, driven by notable acceleration in North American Flat-rolled segment shipments during the second half of June. The company reported better-than-expected production efficiencies and cost benefits across its mines and steel facilities. However, Covid-19 pandemic led to idling of significant portion of its steelmaking operations, which in turn impacted the Q2 results.

Commenting on the results, David B. Burritt, President and CEO, U.S. Steel spotted recovery in market conditions, as many OEMs have started returning to normalized production levels. The construction demand too has started to recover. The increased demand situation resulted in the company restarting two idled blast furnaces. It plans to restart another furnace at Gary Works on August 1, he added.