United States Steel Corporation, a prominent player in the steel industry, has provided its financial guidance for the second quarter of 2024. The company expects adjusted net earnings per diluted share to fall within the range of $0.76 to $0.80, with adjusted EBITDA anticipated to be around $425 million. This guidance comes amidst a dynamic market environment and ongoing strategic initiatives.
David B. Burritt, President and Chief Executive Officer of U.S. Steel, emphasized the company's commitment to safe operations while progressing towards the closure of its transaction with Nippon Steel Corporation. He noted that the adjusted EBITDA guidance of $425 million reflects stable domestic flat-rolled steel end-use demand, despite fluctuations in spot steel prices. In Europe, the company has restarted its temporarily idled blast furnace in response to improving customer demand. However, challenging market conditions are expected to negatively impact the Tubular segment's performance.
U.S. Steel has made significant strides in its innovative projects, with the Big River Steel dual Galvalume® / Galvanized coating line coming online in the second quarter. The company is also progressing towards the planned start-up of Big River 2, a state-of-the-art mini mill, in the second half of 2024. Approximately $30 million of related start-up and one-time construction costs for both projects are included in the second quarter adjusted EBITDA guidance. These investments are expected to enhance U.S. Steel's capability to provide sustainable steels that are increasingly in demand across various end-markets.
Burritt highlighted the company's recent milestones in its journey towards closing the transaction with Nippon Steel Corporation. U.S. Steel has obtained overwhelming approval from its shareholders and received all non-U.S. regulatory approvals. The company is diligently working towards securing the remaining U.S. regulatory approvals and looks forward to closing the transaction, which is expected to bring advanced technologies to U.S. Steel, support a stronger domestic steel industry, enhance competition, and strengthen national security, economic security, and job security.
In terms of segment performance, the Flat-Rolled segment's adjusted EBITDA is expected to be higher than the first quarter, driven by diversified end-market exposure, successful annual fixed contract negotiations, and the absence of typical first quarter seasonal mining operation headwinds. The Mini Mill segment's adjusted EBITDA is anticipated to be lower than the first quarter due to lower average selling prices, partially offset by higher shipment volumes and lower metallics costs. The European segment's adjusted EBITDA is also expected to be lower than the first quarter, primarily due to lower volumes resulting from the temporary idling of blast furnace #2 for a portion of the quarter. The Tubular segment's adjusted EBITDA is projected to be lower than the first quarter, negatively impacted by lower selling prices.
NYSE: X
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