U.S. Steel reports Q1 EPS (39c), consensus (47c)

Reports Q1 revenue $3.73B, consensus $3.56B. Commenting on the Company’s first quarter performance, U. S. Steel CEO David B. Burritt said, “Our adjusted EBITDA of $172 million highlights the strength and resilience of our operating performance, despite the seasonally low results driven by annual mining logistics constraints in our North American Flat-Rolled segment and lagging spot prices. Our North American Flat-Rolled segment achieved a solid EBITDA margin of 5%, thanks to our commercial strategy, product mix, and disciplined cost management. We recorded our highest quarter of shipments to date from our Mini Mill segment as Big River 2 (“BR2″), a showcase of American innovation in steelmaking, continues ramping toward full capacity. After accounting for $55 million in ramp-up impact at BR2, Mini Mill EBITDA margins reached 10%. Our European business benefited from higher shipments and strong cost management, while our Tubular segment posted sequential gains on stronger average selling prices. We also expect the first quarter to mark our lowest cash balance for the year, driven primarily by working capital impacts related to mining and the ramp up of BR2. We are pleased to see shipments from BR2 continue to rise, with customers praising product quality, especially related to our industry-leading ultra-light gauge hot roll, a first in North America, including for the U.S. commercial construction industry. While markets remain dynamic, our dedicated teams are successfully navigating current volatility through optimizing mix, executing with efficiency, and growing shipment volumes in our Mini Mill segment. Particularly noteworthy is our record-setting safety performance this quarter that speaks volumes about all our mills’ operational excellence.”