US Steel (USS) exceeded its guidance in Q3 2020 and reported improved results in its flat-rolled segment, along with a positive EBITDA in US Steel Europe.
The company expects to generate positive adjusted EBITDA in Q4 2020 and has confidence in its strategy so far this year. The steel producer highlighted its successful electric arc furnace commencement in Fairfield along with its one-year anniversary since investing in Big River Steel in its earnings report on Thursday.
The steelmaker’s raw steel production declined to 2.21mn nt (2mn mt) in Q3 2020 compared to 2.78mn nt in Q3 2019 while its raw steel capability utilization rate was 52pc compared with 65pc during the same quarters under comparison.
USS’ flat-rolled steel shipments declined by 18.5pc to 2.16mn nt in Q3 2020 from 2.65mn nt in Q3 2019. The company’s total steel shipments including flat-rolled, tubular, and European operations fell to 3.02mn nt in Q3 2020 compared to 3.59mn nt in the same quarter last year.
The company’s net sales tallied at $2.34bn in Q3 2020 down from $3.07bn in the prior-year period.
The steelmaker posted a net loss of $234mn in the third quarter compared with $84mn in a net loss in Q3 2019. The steel company’s adjusted net loss increased to $268mn in Q3 2020 from $35mn in Q3 2019.
The company’s adjusted EBITDA loss was $49mn in Q3 2020, compared to adjusted EBITDA of $144mn in Q3 2019. USS reported liquidity of $2.86bn including cash of $1.7bn in Q3 2020.