United States Steel Corporation (U.S. Steel) recently provided third quarter 2020 guidance with adjusted earnings before interest, taxes, depreciation and amortization expected to be approximately $100 million.
“Improving market conditions experienced in June and July have accelerated through August and September. Strengthening steel fundamentals and our ability to respond quickly to increasing customer demand are expected to result in significantly improved adjusted EBITDA in the third quarter,” said U.S. Steel President and Chief Executive Officer David B. Burritt.
U.S. Steel also expects adjusted diluted loss per share to be approximately $1.45.
“We have grown confident in the recovery that is underway in North America and Europe,” Burritt said. “While we believe this recovery is enduring, we remain relentlessly focused on what we can control, including management actions to stay nimble, reduce costs, and preserve cash.”
Burritt continued, stating that successful capital market activities in the second quarter and optimistic views in a recovering market gives U.S. Steel the confidence in its ability to repay a portion of the company’s U.S. asset-based loan (ABL) borrowing in September.
“By the end of the quarter, we plan to repay approximately $900 million of our U.S. ABL, which will place our U.S. ABL borrowings below pre-COVID-19 levels,” he said. “We continue to proactively review our use of the U.S. ABL as a reliable and low-cost source of capital.”
Despite improving market conditions, Burritt said that company priorities remain the same in protecting lives and livelihoods.