U. S. Steel Stock Price, News & Analysis

United States Steel (NYSE: X) has announced that it will release its third quarter 2024 financial results on Thursday, October 31, 2024, after the close of trading on the New York Stock Exchange. Due to the pending acquisition by Nippon Steel , announced on December 18, 2023, the company will not hold an earnings conference call. Instead, U. S. Steel will concurrently issue an earnings release, presentation, and segment and financial operational data.

These materials will be accessible on the company's website at www.ussteel.com under the 'Investors' section. U. S. Steel, founded in 1901, is a leading steel producer with an annual raw steelmaking capability of 22.4 million net tons. The company serves various industries with high value-added steel products and maintains iron ore production operations.

U. S. Steel released an economic impact analysis conducted by Parker Strategy Group, assessing the potential impact of Nippon Steel's proposed $1 billion investment to modernize U. S. Steel's Mon Valley Works following their pending merger. The study focuses on a $600 million construction project in Pennsylvania, with various spending scenarios.

Key findings include:

• An 80% in-state spending scenario would generate a $952.9 million incremental economic impact over two years
• Creation of nearly 5,000 construction jobs
• Generation of $38 million in taxes

The investment aims to extend the production life of integrated assets and enhance steel supply security for American manufacturers. U. S. Steel CEO David B. Burritt emphasized the positive economic impact on Pennsylvania communities and families.

U. S. Steel (NYSE: X) announced that the Board of Arbitration has ruled in favor of the company, affirming that it has satisfied all conditions of the successorship clause in its Basic Labor Agreement (BLA) with the United Steelworkers (USW). This ruling resolves all BLA issues between U. S. Steel and USW, clearing the way for Nippon Steel to acquire U. S. Steel without further action under the BLA.

The Board recognized Nippon Steel's commitments, including a $1.4 billion investment in USW-represented facilities, no layoffs or plant closings during the BLA term, and protection of U. S. Steel's interests in trade matters. U. S. Steel and Nippon Steel are progressing through U.S. regulatory reviews and aim to close the transaction by the end of this year.

U. S. Steel's Big River Steel facility in Osceola, Arkansas, has become the world's first to achieve ResponsibleSteel Certified Steel status. This certification, following its 2022 ResponsibleSteel Site Certification, demonstrates U. S. Steel's commitment to sustainability and responsible practices across its supply chain. The ResponsibleSteel International Production Standard includes 13 principles with over 500 criteria for responsible steel sourcing and production.

The certification process evaluates environmental, social, and governance requirements, focusing on responsible sourcing of input materials and site-level decarbonization. U. S. Steel has achieved Progress Level 1 certification, showcasing its integrated approach to sustainability. This achievement provides customers with assurance of sustainably sourced and manufactured steel, setting a new benchmark for the global steel industry.

United States Steel (NYSE: X) has provided guidance for Q3 2024, projecting adjusted net earnings per diluted share of $0.44 to $0.48 and adjusted EBITDA of approximately $300 million. The company reports resilient domestic flat-rolled steel demand amid a bottoming steel pricing environment. U.S. Steel is progressing with strategic initiatives, including the planned start-up of Big River 2 in Q4 2024, with $40 million in related start-up and construction costs expected in Q3. The company continues to advance regulatory reviews for its pending transaction with Nippon Steel, aiming to close by year-end. Nippon Steel has committed to additional investments of $1 billion for Mon Valley Works and $300 million for Gary Works post-closing.

U. S. Steel (NYSE: X) has unveiled ZMAG™, a revolutionary carbon flat rolled coated steel product. This innovative steel features a zinc-aluminum-magnesium coating that offers up to five times the corrosion resistance of conventional galvanized steel. ZMAG™ is designed to be stronger, more resilient, and more sustainable than existing products, making it ideal for industries like solar, automotive, and construction.

Key features of ZMAG™ include:

• Superior durability in harsh conditions
• Lower maintenance costs
• 100% domestically produced in the U.S.
• Exclusive 25-year warranty

U. S. Steel, United Steelworkers union (USW), and Wheeling-Nippon have filed antidumping and countervailing duty petitions on imports of corrosion-resistant steel (CORE) from 10 countries. The petitions were submitted to the U.S. Department of Commerce (DOC) and the U.S. International Trade Commission (ITC) on September 5, 2024. This action aims to address low-priced and subsidized CORE imports entering the U.S. market, potentially harming domestic producers.

Duane D. Holloway, Senior VP and General Counsel of U. S. Steel, emphasized the importance of these trade cases in restoring a level playing field and supporting investments in new facilities. The DOC is expected to initiate the cases, with the ITC holding a preliminary staff conference this month. Final orders from both agencies are anticipated in October 2025.

U. S. Steel employees are rallying in Pittsburgh to support the Nippon Steel transaction, urging elected officials to recognize its benefits. The deal is important for protecting union jobs and securing billions in investment for U. S. Steel operations. Without the transaction, U. S. Steel may pivot away from blast furnace facilities, risking thousands of jobs and impacting communities.

Key points:

• U. S. Steel stockholders approved the transaction with over 98% in favor
• Nippon Steel plans to invest $2.7 billion in USW-represented facilities
• U. S. Steel's operations in PA generated $3.6 billion in economic impact and supported 11,417 jobs
• The deal aims to create 'the best steelmaker with world-leading capabilities'

Nippon Steel has announced significant investments in U. S. Steel's Mon Valley Works and Gary Works as part of its pending acquisition. The company will invest over $1 billion to enhance Mon Valley Works' competitiveness, including replacing or upgrading the hot strip mill. Additionally, Nippon Steel will invest approximately $300 million to revamp Blast Furnace #14 at Gary Works, extending its operational life by up to 20 years.

These investments are incremental to the $1.4 billion capital commitment previously announced. Nippon Steel aims to leverage its expertise in blast furnace operations to improve productivity and environmental sustainability at U. S. Steel's facilities. The company expects the transaction to close in the second half of 2024, subject to regulatory approvals.