United States Steel Corporation (NYSE:X) finished 2020 strong. Those are sentiments echoed by CEO, David Burritt as the company reported fourth-quarter and full-year earnings that topped estimates. The company has already started reaping the rewards of higher prices, adaptive operations and continued focus on cost management.
Stellar Results
Likewise, the company recorded net income of $49 million or 22 cents a share, compared to a net loss of $668 million or $3.93 a share reported a year earlier. The quarter's revenues fell 9% year over year to $2.56 billion but still above consensus estimates of $2.53 billion.
European operations were a bright spot as profits came in at $36 million from a net loss of $30 million. Shipments in the segments were up 11% to $840,000 tones as average realized price per ton was up 5% to $652.
Steel shipments declined 62% to 74,000 tons as average realized price per ton fell 2% to $1,267. Full-year net loss increased to $5.92 a share compared to a net loss of $3.67 a share. Adjusted net loss was $4.67 a share compared to earnings of 9 cents a year ago. Full-year revenues dropped 24% to $9.7 billion.
Improving Fundamentals
Improving market conditions from August to the end of the year helped propel the company to better than expected results. U.S Steel ended the year with $1.9 billion in cash, and cash equivalent as long-term debt rose 29% to $4.7 billion.
According to Chief Executive Officer, strengthening steel fundamentals and ability to respond quickly to increasing customer demand resulted in significantly improved adjusted earnings before interest. The executive expects the market to be driven by strong demand for low inventories and supportive material prices.
Similarly, U.S steel remains well-positioned to drive significant earnings growth conversely deliver an unmatched value proposition to its customers. The company’s shares were up by more than 100% in 2020, outperforming the overall industry, which was up by about 22%.