U.S. Steel expecting $250 million in EBITDA in fourth quarter

U.S. Steel announced it’s expecting $250 million in earnings before interest, taxes, depreciation and amortization in the fourth quarter.

The Pittsburgh-based steelmaker, one of the Calumet Region’s largest employers, released new guidance projecting adjusted net earnings per diluted share of $0.20 to $0.25 in the fourth quarter.

“Our expected fourth quarter performance is in-line with commentary provided on our October earnings call,” U.S. Steel President and CEO David Burritt said. “We successfully navigated the impact of the autoworkers’ strike to our domestic flat-rolled order book. Our diverse order book allowed us to repurpose tons impacted by the strike to other customers. In our Tubular segment, increased shipments are expected to more than offset the impact from lower selling prices. We focus on the things we can control and expect to deliver another quarter of strong safety, environmental, and operational performance. Looking ahead, domestic steel markets are improving, customer demand is growing and spot selling prices are increasing.”

The steelmaker expects EBITDA to decline in its flat-rolled segment in the fourth quarter because of the idled Blast Furnace B at Granite City Works in Illinois and planned maintenance at other steel mills. Selling prices, both spot prices and index-based contracts, are expected to decline in the fourth quarter.

U.S. Steel also has to shoulder $10 million in startup costs for its new direct reduced-grade pellet operation in the Keetac operation in Minnesota’s Iron Range, as well as $10 million in construction at Big River Steel in Arkansas.

The mini-mill segment expects a decline in EBITDA in the fourth quarter as a result of maintenance outages and headwinds.

The European segment’s adjusted EBITDA is expected to stay steady in the fourth quarter while the tubular segment’s adjusted EBITDA is expected to rise slightly as a result of increased shipments.

“We are ending 2023 from a position of strength. Our guidance reflects strong performance, we are successfully negotiating annual auto contracts for incremental volumes and better pricing, and our suite of Best for All strategic projects continues to progress on-time and on-budget,” Burritt said. “Earlier this month, we produced the first pellets from our Keetac direct reduced-grade pellet investment on-time and on-budget. In 2024, we expect to complete the remaining strategic investments, including our dual coating line at Big River Steel and our new state-of-the-art Big River 2 mini mill.”