United States Steel Corporation · NYSE:X
United States Steel — Q1 2014 Earnings Presentation
22 slides from United States Steel's earnings presentation, Apr 30, 2014
Slide 1: First Quarter 2014 Earnings Conference Call and Webcast
United States Steel Corporation First Quarter 2014 Earnings Conference Call and Webcast April 30, 2014 © 2011 United States Steel Corporation Exhibit 99.1
Slide 2: Forward-looking Statements
2 Forward-looking Statements United States Steel Corporation This presentation contains forward-looking statements with respect to market conditions, operating costs, shipments and prices. Factors that could affect market conditions, costs, shipments and prices for both North American and European o
Slide 3: Adjusted First Quarter 2014 Results
3 United States Steel Corporation Adjusted First Quarter 2014 Results $94 $146 $154 $52 ($51) $38 $0.27 $0.34 ($0.35) ($100) ($50) $0 $50 $100 $150 1Q 2013 4Q 2013 1Q 2014 $ M ill io ns ($0.75) ($0.50) ($0.25) $0.00 $0.25 $0.50 $0.75 $1.00 $ pe r sh ar e Reportable segment and other businesses incom
Slide 4: Cash Flow
United States Steel Corporation Cash Flow $120 $41 $299 $207 $0 $100 $200 $300 2Q2013 3Q2013 4Q2013 1Q2014 $ M ill io n s Significant cash generation from multiple sources 4 ($ in millions) 2Q2013 3Q2013 4Q2013 1Q2014 LTM Cash from operations 151 37 (7) 570 751 Working capital changes (31) 4 306 (36
Slide 5: First Quarter 2014 Flat-rolled Segment
5 United States Steel Corporation First Quarter 2014 Flat-rolled Segment Shipments (net tons in thousands) ($13) $87 $85 $750 $761 $719 ($25) $0 $25 $50 $75 $100 $125 1Q 2013 4Q 2013 1Q 2014 In co m e fr o m o p er at io n s ($ m il li o n s) $400 $500 $600 $700 $800 A ve ra g e re al iz ed p ri ce
Slide 6: First Quarter 2014 Tubular Segment
6 United States Steel Corporation First Quarter 2014 Tubular Segment $64 $32 $24 $1,556 $1,509 $1,479 $0 $25 $50 $75 1Q 2013 4Q 2013 1Q 2014 In c o m e f ro m o p e ra ti o n s ( $ m il li o n s ) $600 $900 $1,200 $1,500 A v e ra g e r e a li z e d p ri c e s ( $ p e r n e t to n ) Income from opera
Slide 7: First Quarter 2014 U. S. Steel Europe Segment
7 United States Steel Corporation First Quarter 2014 U. S. Steel Europe Segment $38 $12 $32 $718 $692 $710 ($25) $0 $25 $50 1Q 2013 4Q 2013 1Q 2014 In c o m e f ro m o p e ra ti o n s ( $ m il li o n s ) $400 $500 $600 $700 A v e ra g e r e a li z e d p ri c e s ( $ p e r n e t to n ) Income from op
Slide 8: Carnegie Way Benefits
8 Carnegie Way Benefits 54% 34% 12% Flat-rolled U. S. Steel Europe Tubular FY 2014 impact Previously announced Carnegie Way benefits $150 million Additional Carnegie Way benefits announced today $140 million Total Carnegie Way benefits announced to-date $290 million United States Steel Corporation 5
Slide 9: Carnegie Way transformation
9 Carnegie Way transformation Phase 1: Earning the right to grow Phase 2: Driving profitable growth Strategic Approach United States Steel Corporation
Slide 10: Global Safety Performance - 2005 to 2013
10 Days Away From Work Cases ≥ 31 Days (Frequency Rates per 200,000 Hours Worked) United States Steel Corporation 0.500 0.787 0.620 0.282 0.366 0.325 0.351 0.306 0.3080.3170.3090.285 0.3200.342 0.346 0.377 0.013 0.216 0.187 0.073 0.037 0.037 0.041 0.026 0.015 0.00 0.20 0.40 0.60 0.80 1.00 2005 2006
Slide 11: Market Updates
11 United States Steel Corporation Flat-rolled Automotive sales at highest post-recession SAAR in March, momentum expected to carry over into second quarter Agricultural equipment sales up in first quarter, railcar deliveries projected to increase from 2013 Recent OEM forecasts reflect improving app
Slide 12: Second Quarter 2014 Outlook
12 United States Steel Corporation Second Quarter 2014 Outlook Segment outlook Flat-rolled Operating results expected to be a loss for the quarter Operational difficulties expected to limit production, resulting in lower shipments and higher operating costs Realized prices comparable to first quarte
Slide 13: Operating update
Lake Superior ice conditions at highest levels in over 30 years Operating update 13 United States Steel Corporation
Slide 14: Strategic update
14 United States Steel Corporation Strategic update Operating updates Pellet supply Great Lakes Works Product development and capabilities Increased Research & Development spending Tubular semi-premium and premium connections PRO-TEC continuous anneal line – Steel vs. Aluminum Actions and initiative
Slide 15: Q & A
United States Steel Corporation First Quarter 2014 Earnings Conference Call and Webcast Q & A April 30, 2014 © 2011 United States Steel Corporation United States Steel Corporation 15
Slide 16: Appendix
© 2011 United States Steel Corporation Appendix 16 United States Steel Corporation
Slide 17: Major industry summary North American Flat-rolled Segment
17 Major industry summary North American Flat-rolled Segment Sources: Wards / Customer Financial Reports / AISI / CMI / Economic Planning Assoc / AHAM / US Census Bureau / AIA / AEM / MSCI Automotive Q1 sales off to slow start due to severe weather but jumped in March, setting a post-recession recor
Slide 18: Market Fundamentals
18 Market Fundamentals Sources: Baker Hughes, Energy Information Administration, Preston Publishing, Spears & Associates, Wood Mackenzie, Internal Oil Directed Rig Count Currently 1,534 rigs, up 11% year over year and near the highest in decades. The oil directed rig count increased by 8% during the
Slide 19: Major industry summary (Europe)
19 Major industry summary Sources: Eurofer, USSK Marketing, EASSC, LMC, Euroconstruct, ESTA, ACEA United States Steel Corporation Automotive In Q2 2014, EU 27 car production is expected to be 4.18 million units, a decline of 2.5% y-o-y. Total EU 2014 car production is forecasted to grow by 1.6% to 1
Slide 20: U. S. Steel Commercial – Contract vs. Spot
U. S. Steel Commercial – Contract vs. Spot Contract vs spot mix by segment – twelve months ended March 31, 2014 Firm 23% Market Based Quarterly * 19% Flat-rolled Market Based Monthly * 13% Tubular U. S. Steel Kosice Spot 31% Cost Based 13% Contract: 69% Spot: 31% Firm 39% Market Based Quarterly 1% S
Slide 21: Other Items
21 United States Steel Corporation Other Items Capital Spending First quarter actual $90 million, 2014 estimate $620 million Depreciation, Depletion and Amortization First quarter actual $166 million, 2014 estimate $670 million Pension and Other Benefits Costs First quarter actual $87 million, 2014
Slide 22: Adjusted First and Fourth Quarter 2013 Results
22 United States Steel Corporation Adjusted First and Fourth Quarter 2013 Results ($ millions) 1Q 2013 4Q 2013 Reported net income (loss) ($73) $270 Non-cash restructuring and other charges ─ 302 Tax benefits ─ (534) Premium charge on repurchases of convertible notes 22 ─ Adjusted net income (loss)