United States Steel Corporation · NYSE:X
United States Steel — Q2 2014 Earnings Presentation
21 slides from United States Steel's earnings presentation, Jul 30, 2014
Slide 1: Second Quarter 2014 Earnings Conference Call and Webcast
Exhibit 99.1 United States Steel Corporation Second Quarter 2014 Earnings Conference Call and Webcast July 30, 2014 © 2011 United States Steel Corporation
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 Second Quarter 2014 Results Strong
Income from Operations – Reportable Segments and Other Businesses $ Millions Adjusted Net Income $ Millions Adjusted Diluted EPS $ / Share 2Q 2014 1Q 2014 2Q 2013 2Q 2013 1Q 2014 2Q 2014 Carnegie Way improvements offset weather and operational issues Note: For reconciliation of non-GAAP amounts see
Slide 4: Strong Cash Flows and Liquidity
Cash from Operations $ Millions 1Q 2014 4Q 2013 3Q 2013 LTM 2Q 2014 Note: Cash from operations includes a voluntary pension contribution of $140 million in 3Q 2013 Total Estimated Liquidity $ Millions 1Q 2014 4Q 2013 3Q 2013 2Q 2014 Significant cash generation Strong liquidity position Significant d
Slide 5: Second Quarter 2014 Flat-rolled Segment
Income from Operations $ Millions Average Realized Prices $ Millions 2Q 2013 1Q 2014 2Q 2014 Second Quarter 2014 Flat-rolled Segment 2Q 2013 1Q 2014 2Q 2014 Shipments Net tons (Thousands) 2Q 2013 1Q 2014 2Q 2014 Operating income per ton increased $22 from second quarter 2013 Results were positive de
Slide 6: Second Quarter 2014 Tubular Segment
Income from Operations $ Millions Average Realized Prices $ Millions 2Q 2014 1Q 2014 2Q 2013 xxx Second Quarter 2014 Tubular Segment 2Q 2014 1Q 2014 2Q 2013 Shipments Net tons (Thousands) 2Q 2014 1Q 2014 2Q 2013 Strong energy tubular market led by onshore horizontal oil drilling 6 United States Stee
Slide 7: Second Quarter 2014 U. S. Steel Europe Segment
Income from Operations $ Millions Average Realized Prices $ Millions 2Q 2013 1Q 2014 2Q 2014 Second Quarter 2014 U. S. Steel Europe Segment 2Q 2013 1Q 2014 2Q 2014 Shipments Net tons (Thousands) 2Q 2013 1Q 2014 2Q 2014 Operating income per ton increased $27 from second quarter 2013 Stronger profitab
Slide 8: Carnegie Way Delivering Strong Benefits Fast
Carnegie Way Benefits – FY 2014 Impact $ Millions 8 Carnegie Way Delivering Strong Benefits Fast Previously announced Additional announced today Total announced to-date 55% 12% United States Steel Corporation
Slide 9: Carnegie Way transformation Strategic Approach
9 Carnegie Way transformation Phase 1: Earning the right to grow Phase 2: Driving profitable growth Strategic Approach United States Steel Corporation
Slide 10: Market Updates
10 United States Steel Corporation Flat-rolled June U.S. light vehicle sales reached an eight year SAAR high MSCI USA carbon flat-rolled inventories stable at 2.1 months and outbound shipments up ~5% YTD; Canada inventory 80% y-o-y despite slight YTD shipment increase Recent OEM forecasts reflect im
Slide 11: Third Quarter 2014 Outlook
11 United States Steel Corporation Third Quarter 2014 Outlook Segment outlook Flat-rolled Operating results expected to improve significantly Operations have returned to normal resulting in a favorable $150 million impact in the quarter from increased operating efficiencies and reduced repairs and m
Slide 12: Strategic Update
12 United States Steel Corporation Strategic Update Operating updates Great Lakes Works Gary Works Pellet supply and inventories Product development and capabilities Generation 3 AHSS for automotive Premium connections Research & Development Actions and initiatives
Slide 13: Q & A
United States Steel Corporation Second Quarter 2014 Earnings Conference Call and Webcast Q & A July 30, 2014 © 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 Sources: Wards / Customer Financial Reports / AISI / CMI / Economic Planning Assoc / AHAM / US Census Bureau / AIA / AEM / MSCI Automotive June U.S. light vehicle sales exceeded expectations for the second consecutive month, reaching an 8-
Slide 16: Market Fundamentals
16 Market Fundamentals Sources: Baker Hughes, Energy Information Administration, Preston Publishing, Spears & Associates, Wood Mackenzie, Internal Oil Directed Rig Count Currently 1,562 rigs, up 12% year over year and very near to the highest level in decades. The oil directed rig count increased by
Slide 17: Major industry summary Europe
17 Major industry summary Sources: Eurofer, USSK Marketing, EASSC, LMC, Euroconstruct, ESTA, ACEA United States Steel Corporation Automotive In 3Q 2014, the EU 27 car production is expected to amount to 3.71 million units, an increase of 1% y-o-y. Total EU 2014 car production is forecasted to grow b
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 June 30, 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% Sp
Slide 19: Other Items
19 United States Steel Corporation Other Items Capital Spending Second quarter actual $96 million, 2014 estimate $600 million Depreciation, Depletion and Amortization Second quarter actual $165 million, 2014 estimate $670 million Pension and Other Benefits Costs Second quarter actual $70 million, 20
Slide 20: Global Safety Performance
20 0.00 0.20 0.40 0.60 0.80 1.00 1.20 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Q2 2014 1.00 0.35 0.26 0.15 0.13 0.14 0.17 0.12 0.11 0.11 0.08 Days Away From Work Injury Rate (Frequency Rates per 200,000 Hours Worked) Global Safety Performance Safety Performance United States Steel Corporati
Slide 21: Reconciliation of reported and adjusted net income and EPS
21 United States Steel Corporation Adjusted Results ($ millions) 2Q 2014 1Q 2014 2Q 2013 Reported net income (loss) ($18) $52 ($78) Litigation reserves 46 ─ ─ Loss on assets held for sale 9 ─ ─ Curtailment gain (12) ─ ─ Adjusted net income (loss) $25 $52 ($78) ($ per share) Reported EPS (LPS) ($0.12