U.S. Steel Posted Net Loss of $391M in Q1 2020

SEATTLE (Scrap Monster):  Pittsburgh-based United States Steel Corporation (U.S. Steel) reported net loss of $391 million or $2.30 per diluted share in the initial quarter of the current year. This compares to net earnings of $54 million or $0.31 per diluted share in the corresponding quarter last year.

The company reported adjusted net loss of $123 million or $0.73 per diluted share, compared with adjusted net earnings of $81 million or $0.47 per diluted share. U.S. Steel reported adjusted EBITDA of $64 million. As at the end of the initial quarter of the year, the company reported liquidity of $1.82 billion, including cash of $1.35 billion.

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U.S. Steel granted Stelco Inc. the option to acquire 25% interest in the company’s Minntac iron ore mining operations for an aggregate purchase price of $600 million. U.S. Steel announced that it has received $20 million upon signing of the option agreement. Another $80 million will be paid over the remaining period of 2020. An additional payment of $500 million will be paid in order to acquire 25% stake in the new cost-sharing joint venture.

David B. Burritt, President and Chief Executive Officer, U.S. Steel stated that the decisive actions to adjust its footprints in response to the unprecedented market dynamics have helped the company to exceed its first quarter guidance. The company’s immediate focus is on preserving cash and liquidity along with ensuring safety and health of its employees, he added.