US Steel profits narrow in 2022

Pittsburgh-based United States Steel Corp. closed 2022 with net earnings of $226 million in the fourth quarter. While remaining profitable, the steelmaker’s quarterly net earnings fell by 84 percent compared with the $1.43 billion net earnings level in the final quarter of 2021.

For the full year, U.S. steel cleared $2.52 billion in net earnings in 2022. That also represents a decrease of 39.5 percent compared with 2021, when the steel producer netted $4.17 billion.

The firm pointed to several one-time conditions or charges as affecting its earnings last year, including “the impact of asset impairments related to the permanent idling of the iron-making process at the company’s Great Lakes Works [near Detroit]; the impact of a one-time signing bonus related to the United Steelworkers labor agreement; and other one-time items detailed in the reconciliation of adjusted net earnings table.”

“2022 was another exceptional year for U. S. Steel, marking our second-best financial performance in the company’s history,” U.S. Steel President and CEO David B. Burritt, says. “Our fourth quarter results exceeded our guidance expectations thanks to the combined efforts of our domestic steelmaking operations and Tubular segment.”

Burritt also credits the company’s electric arc furnace (EAF) operations, referring to “positive earnings before interest, taxes, depreciation and amortization (EBITDA) in December at our Mini Mill segment, reflecting improving momentum through year-end while continuing to work through higher priced raw materials purchased earlier in 2022.”

Looking at the current year, Burritt says, “We are well-positioned for 2023. Our record cash and liquidity support a balanced capital allocation approach. We returned approximately $900 million to stockholders in 2022 and plan to continue rewarding stockholders in 2023 while investing in the business. We are already delivering on strategic commitments, including the Gary Works pig iron machine that was commissioned ahead of schedule and on budget. Later this year, our nongrain oriented electrical steel line at Big River Steel [an EAF mill in Arkansas] will begin producing advanced steel grades to meet the growing electric vehicle demand. 2023 is a pivotal year in our strategy and we look forward to demonstrating continued progress towards our Best for All future.”