United States Steel Corporation · NYSE:X
United States Steel — Q1 2015 Earnings Presentation
24 slides from United States Steel's earnings presentation, Apr 29, 2015
Slide 1: First Quarter 2015 Earnings Conference Call and Webcast
Exhibit 99.1 United States Steel Corporation First Quarter 2015 Earnings Conference Call and Webcast April 29, 2015 © 2011 United States Steel Corporation
Slide 2: Forward-looking Statements
2 Forward-looking Statements United States Steel Corporation This presentation contains information that may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Generally, we have identified such forward-looking statements by using the
Slide 3: First Quarter 2015 Results
Segment EBIT $ Millions Adjusted EBITDA $ Millions Adjusted Diluted EPS $ / Share 1Q 2015 3Q 2014 2Q 2014 2Q 2014 3Q 2014 4Q 2014 Note: For reconciliation of non-GAAP amounts see Appendix 3Q 2014 2Q 2014 4Q 2014 First Quarter 2015 Results 3 United States Steel Corporation Adjusted Net Income $ Milli
Slide 4: Strong Cash Position and Liquidity
Cash from Operations $ Millions 4Q 2014 3Q 2014 2Q 2014 LTM 1Q 2015 Note: Cash from operations in 3Q 2014 includes a reduction in cash of $80 million from the deconsolidation of U. S. Steel Canada, Inc., a voluntary pension contribution of $140 million and a litigation settlement of $58 million Tota
Slide 5: Flat-rolled Segment
EBIT $ Millions Average Realized Prices $ / Ton 2Q 2014 3Q 2014 4Q 2014 First Quarter 2015 Flat-rolled Segment 2Q 2014 3Q 2014 4Q 2014 Shipments Net tons (Thousands) 2Q 2014 3Q 2014 1Q 2015 Historically high import levels resulted in lower spot prices and customer order rates 5 United States Steel C
Slide 6: Tubular Segment
EBIT $ Millions Average Realized Prices $ / Ton 2Q 2014 3Q 2014 4Q 2014 First Quarter 2015 Tubular Segment 2Q 2014 3Q 2014 4Q 2014 Shipments Net tons (Thousands) 2Q 2014 3Q 2014 4Q 2014 U.S. rig counts have dropped 49% since the beginning of the year to 932 rigs 6 United States Steel Corporation EBI
Slide 7: U. S. Steel Europe Segment
EBIT $ Millions Average Realized Prices $ / Ton 2Q 2014 3Q 2014 4Q 2014 First Quarter 2015 U. S. Steel Europe Segment 2Q 2014 3Q 2014 4Q 2014 Shipments Net tons (Thousands) 2Q 2014 3Q 2014 4Q 2014 Higher volumes and lower raw material costs help to offset lower selling prices 7 United States Steel C
Slide 8: Carnegie Way Continuing to Deliver
Carnegie Way Benefits1 – FY 2015 Impact $ Millions 8 Carnegie Way Continuing to Deliver 55% 12% United States Steel Corporation 1 Carnegie Way benefits are based on the incremental impact in 2015 as compared to 2014 as the base year.
Slide 9: Carnegie Way transformation Strategic Approach
9 Carnegie Way transformation Phase 1: Earning the right to grow in search of: • Economic profits • Customer satisfaction and loyalty • Process improvements and focused investment Phase 2: Driving profitable growth with: • Innovation and Technology • Differentiated customer solutions • Focused M&A S
Slide 10: Business Update
10 United States Steel Corporation Business Update Short term actions taken are expected to reduce costs in the last three quarters of 2015 by at least $200 million Operating updates • Steelmaking facilities • Flat-rolled finishing facilities • Tubular facilities Strategic initiatives • Commercial e
Slide 11: Market Updates
11 United States Steel Corporation Flat-rolled 2015 U.S. light vehicle sales forecast is up 3% year-over-year Recent OEM shipment forecasts indicate 3% - 5% growth in the appliance market versus 2014 Construction data points suggest better demand in 2015 Service center shipments YTD are approximatel
Slide 12: 2015 Outlook
12 United States Steel Corporation 2015 Outlook Updated 2015 Adjusted EBITDA Guidance $0.7 to $0.9 billion Prior 2015 Adjusted EBITDA Guidance $1.1 to $1.4 billion Increased headwinds cannot be fully offset by improved tailwinds Headwinds intensified Spot and Index price decreases Imports remain at
Slide 13: Q & A
United States Steel Corporation First Quarter 2015 Earnings Conference Call and Webcast Q & A April 29, 2015 © 2011 United States Steel Corporation United States Steel Corporation 13
Slide 14: Appendix
© 2011 United States Steel Corporation Appendix 14 United States Steel Corporation
Slide 15: Major industry summary North American Flat-rolled Segment
15 Major industry summary North American Flat-rolled Segment Automotive 2015 US light vehicle sales forecast of 16.9 million units represents 3% y-o-y growth March SAAR pegged at 17.05 million units 1Q US light vehicle sales increased 5.6%, or 210,000 units, from 1Q 2014 Strong March sales affected
Slide 16: Market industry summary Tubular Segment
16 Market industry summary Tubular Segment United States Steel Corporation Sources: Baker Hughes, US Energy Information Administration, Preston Publishing, Internal Oil Directed Rig Count The oil directed rig count averaged 1,090 during 1Q, a decrease of 31% over 4Q. There are currently 703 active o
Slide 17: Major industry summary Europe
17 Major industry summary United States Steel Corporation Automotive In 2Q, EU car production is expected to amount to 4.47 million units, an increase of 0.6% y-o-y. In 2015, total EU car production is forecasted to grow by 2.3% to roughly 17.20 million units. V4 car production is anticipated to dec
Slide 18: 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, 2015 Firm 31% Market Based Quarterly * 21% Flat-rolled ** Market Based Monthly * 11% Tubular U. S. Steel Europe Spot 27% Cost Based 9% Contract: 73% Spot: 27% Firm 36% Market Based Quarterly*
Slide 19: Other Items
19 United States Steel Corporation Other Items Capital Spending First quarter actual $172 million, 2015 estimate $550 million Depreciation, Depletion and Amortization First quarter actual $144 million, 2015 estimate $585 million Pension and Other Benefits Costs First quarter actual $62 million, 2015
Slide 20: Safety Performance Rates
20 Safety Performance Rates Frequency of Injuries (per 200,000 manhours) Data for 2010 forward includes Lone Star Tubular Operations, Bellville Tubular Operations, Rig Site Services, Tubular Processing Houston, Offshore Operations Houston, and Wheeling Machine Products. Data for 2011 forward include
Slide 21: Adjusted Results ($ millions)
21 United States Steel Corporation Adjusted Results ($ millions) LTM 1Q 2015 4Q 2014 3Q 2014 2Q 2014 Reported net earnings (loss) ($25) ($75) $275 ($207) ($18) Loss on shutdown of coke production facilities 65 65 ─ ─ ─ Loss on deconsolidation of U. S. Steel Canada and other charges 385 ─ 1 384 ─ Imp
Slide 22: Adjusted Results ($ per share)
22 United States Steel Corporation Adjusted Results ($ per share) LTM 1Q 2015 4Q 2014 3Q 2014 2Q 2014 Reported diluted EPS (LPS) ($0.23) ($0.52) $1.83 ($1.42) ($0.12) Loss on shutdown of coke production facilities 0.45 0.45 ─ ─ ─ Loss on deconsolidation of U. S. Steel Canada and other charges 2.55 ─
Slide 23: Reconciliation of adjusted EBITDA
23 United States Steel Corporation Adjusted Results ($ millions) LTM 1Q 2015 4Q 2014 3Q 2014 2Q 2014 Reported (loss) earnings before interest and income taxes (EBIT) $104 ($187) $397 ($141) $35 Depreciation expense 605 144 138 158 165 EBITDA 709 (43) 535 17 200 Loss on shutdown of coke production fa
Slide 24: Adjusted Results Net Debt
24 United States Steel Corporation Adjusted Results Net Debt ($ millions) 1Q 2015 4Q 2014 3Q 2014 2Q 2014 Short-term debt and current maturities of long-term debt $378 $378 $336 $20 Long-term debt, less unamortized discount 3,124 3,120 3,162 3,605 Total Debt $3,502 $3,498 $3,498 $3,625 Less: Cash an